Pennsylvania Governor To Float Corporate Tax Plan This Week
According to The Associated Press, in his budget address tomorrow Pennsylvania Gov. Tom Wolf (D-PA) will offer a plan that would gradually reduce over the next three years the state’s corporate tax rate. (The rate would fall from 9.99 percent to 4.99 percent.)
While Gov. Wolf’s proposal would turn one of the nation’s highest state corporate income tax rates into one of the lowest, Gov. Wolf’s plan would also attempt to end a practice that allows Pennsylvania companies to shift their profits to states with lower corporate tax burdens. The Associated Press said that aspect of the proposal “would effectively broaden the income subject to the corporate net income tax.” Republican leaders argued this provision could impact companies that are already “paying their fair share.”
In his address tomorrow, Gov. Wolf is also expected to say he will allow the state’s capital stock and franchise tax to expire and to propose $5 million in tax credits for employers that create new jobs.