The PA Chamber recently hosted a business roundtable and press conference at the Lancaster Chamber of Commerce to discuss how the state’s newly enacted state tax reform package will improve competitiveness and the economy.
The tax reform package, part of the 2022-23 budget agreement, reduces the state’s Corporate Net Income Tax (CNIT) rate from 9.99 percent to 4.99 percent.
Decreasing the CNIT leads to higher wages, increased home values, and higher gross domestic product, according to studies.
The tax package also allows businesses to defer personal income tax liabilities through “like-kind exchanges” of certain property. Pennsylvania was the only state that did not offer this type of deferral.
In addition, the package aligns the state Tax Code with federal tax law to allow small businesses to deduct qualifying equipment purchases from personal income tax liabilities.
Representatives from Gov. Tom Wolf’s administration, members of the Lancaster state legislative delegation, and state and local business leaders attended the roundtable.
“Improving our tax structure and business climate in Pennsylvania will have a ripple effect across every community and job sector by creating more high-paying jobs, enabling working class Pennsylvanians to experience earned success and upward mobility, and allowing our Commonwealth to compete nationally and globally for economic opportunity,” Sen. Ryan Aument (R-Lancaster County) said.