Jul. 07, 2022
HARRISBURG – State Rep. David Rowe (R-Snyder/Union) commented on the passage of a new tax code bill aimed at driving economic growth and further investing in Pennsylvania’s small businesses.
“The state is in a position where it can return taxpayer investments. This tax code bill would do that by providing relief to Pennsylvanians and reversing decades of harmful tax policies that hinder economic growth. House Bill 1342
would also benefit small businesses that were devastated by pandemic-era shutdowns and punitive tax policies by allowing them to defer tax liabilities on gains from similar property exchanges, which is allowed in 49 other states. I was very happy to support this bill,” Rowe said.
The tax code reform package encompasses solutions to many issues, from a historic reduction in the Corporate Net Income Tax (CNIT) to caps on tax credits, deductions and deferrals for like exchanges of property, exempting gold star families from inheritance taxes and more. Currently, the CNIT sits at 9.99%, potentially deterring entrepreneurs from bringing business to Pennsylvania. This bill would reduce the rate to 8.99% next year and lower it an additional 0.5% annually until the rate reaches 4.99%. This is the first reduction in the CNIT since 1995 and the first significant tax cut since the decision to phase out the Capital Stock and Franchise Tax in 2002.
“Shutdowns, Biden-era inflation, and uncompetitive tax policies heavily burden our small businesses and stifled entrepreneurship. This bill would bring our tax provisions in line with other states and the federal government, a long overdue fix to our tax code that will make Pennsylvania competitive, create jobs and grow our economy,” Rowe added.
Representative David Rowe
Pennsylvania House of Representatives
Media Contact: Katelin Morrison