Today, Governor Tom Wolf highlighted his plan to cut the 9.99 percent CNIT in an effort to boost the economy and attract businesses. In his proposal, the CNIT rate would drop to 7.99 percent by January 2023, gradually decreasing each year until reaching 4.99 percent.
“Businesses are asked to pay more than their fair share, it’s a barrier to new business growth, and limiting opportunities for our workers and new student graduates,” said Wolf.
Wolf says he’s been pushing a cut to the tax for seven out of his last eight budgets. The proposal announced today is supported by Democratic legislation in both the House and Senate.
Senator Steven Santarsiero (D-Bucks) and Representative Mary Jo Daley (D-Montgomery) are sponsoring Senate Bill 1077 and House Bill 2510, respectively.
Wolf believes this legislation will make for a better business climate, while providing opportunities for increased growth and job creation.
Wolf explained how larger businesses and “C” corporations are often the ones driving job creation for the commonwealth, but that ten percent tax is making it difficult.
“It’s limiting opportunities for Pennsylvania workers because the jobs that we really want to have here in Pennsylvania are created by these, in many cases, “C” corporations, that we’re making it hard on,” said Wolf.
He says the proposal is critical for ensuring economic sustainability for future generations.
“Here’s the key thing, it’s a way for us to ensure that the students who have gotten a good education in Pennsylvania can now get a good job in Pennsylvania,” said Wolf.
With revenue surpluses and a $2.8 billion rainy-day fund, Wolf says it’s time to invest in the economy by lowering the CNIT.
“And that deficit of 2 to $3 billion, well, last year we had a $2.6 billion surplus. This year, it looks like we’re going to have even more. Revenues through the end of March are 2.6 billion ahead of estimate, just revenues,” said Wolf.
A spokesperson for the House Republican Caucus sent the following statement to ErieNewsNow this afternoon in response to the Governor’s proposal:
“Pennsylvania House Republicans will be bringing up our plan to drive investment in Pennsylvania and economic growth through a true cut in the Corporate Net Income Tax when we return at the end of the month. Instead of holding press conferences trying to fool Pennsylvanians into a bait-and-switch that is nothing more than a harmful backdoor tax increase on Pennsylvania job creators, Gov. Wolf and legislative Democrats should get on board with our plan and come along for the ride while Republicans deliver real economic growth and job creation for the people of Pennsylvania.”