Democrats, Republicans claim the mantle of cutting Pennsylvania taxes
By Anthony Hennen | The Center Square
HARRISBURG, PA – Democrats and Republicans are fighting about tax cuts – but this time, it’s an argument about who will cut taxes more.
“House Democrats have a plan to cut taxes almost in HALF on the businesses that create #BetterJobs and build #BetterCommunities,” the Pennsylvania House Democrats recently tweeted. “House Republicans want to cut them by one percentage point.”
Democrats want to push Republicans to take up their economic plan that would reduce the corporate net income tax rate from 9.99% to 6.99%, strengthen add-back provisions that would target businesses that shift income to its affiliates, expand investment write-offs for high-tech companies, and increase research and development tax credits.
“We must reward innovation and expand Pennsylvania’s role as a world leader in fast-growing, high-technology industries with a competitive tax structure and invest in our entrepreneurs making business happen,” House Democrats argue.
Republicans offer their own approach, one in which the corporate net income tax would fall to 5.99% so long as revenue targets are met. They criticize the Democratic plan as undermining businesses, broadly.
“House Bill 1960’s one percentage point reduction in the CNIT would provide more tax relief and make Pennsylvania’s business image look better than the proposal offered by House Democrats and the Wolf administration, which is riddled with backdoor tax increases and business disincentives,” House Republicans said in a press release.
“The House Republican Caucus is focused on passing legislation to make Pennsylvania the Envy of the East – to set our economy on fire so as to drive investment, create family-sustaining jobs and grow our communities,” House Majority Leader Kerry Benninghoff, R-Centre/Mifflin, said.
House Republicans have proposed eight tax reform bills that also adjust business write-offs, align federal and state tax codes, and change depreciation deductions, among other issues. In an election year, both parties are making their case for how to change taxation rules, and both argue that they are more friendly to businesses in the state.
