Legislation designed to incentivize people and businesses to move to Pennsylvania advanced the state Senate Wednesday.
The bill, Senate Bill 771, sponsored by state Sen. Ryan Aument (R-36), would gradually reduce the state’s Corporate Net Income (CNI) Tax from its current 9.11 percent rate to 6.99 percent by 2024. Aument said the bill would attract new employers and promote economic growth. The rate could be further reduced if it meets or exceeds the revenue projections for 2024 at the 9.99 percent rate.
Aument introduced the bill following the 2020 Census, which showed the state’s population growth has lagged behind most other states. As a result, Pennsylvania was stripped of another seat in Congress. The state has lost at least one Congressional seat in the last 10 censuses since 1930.
“Not only is the state’s inability to retain residents or attract new ones costing us political influence in Washington, it also separates families as younger generations pursue jobs in other states with greater promise of upward mobility,” Aument said. “Reducing our state’s CNI tax would directly address our ongoing issues with outbound migration while also providing real, tangible benefits to Commonwealth residents.”
Aument’s office said research indicates that lowering the state’s CNI tax rate would create better job opportunities and a more favorable business climate, as well as increase population by incentivizing people to move to the state, elevate home values, raise workers’ wages, and do so without negatively impacting state revenues.
“My focus has always been on policies that will position Pennsylvanians for economic success and upward mobility for generations to come,” added Aument. “The benefits of a CNI tax cut will reach beyond the next few months and ensure Pennsylvania not only recovers from the financial hardships of this recession in the near term but also thrives in the long term.”
After receiving bipartisan support in the Senate, the bill will now go to the House of Representatives for consideration.