PA House Passes Business Tax Cut

PA is sitting on a surplus of cash and wants to help businesses make it rain 🤑 House Bill 1960 just passed to reduce the corporate net income rate. The current rate of 10% has been in place since 1995 and officials say it's time for a change.  

‍

The bill passed with flying colors, receiving praise from both sides of the aisle 🤝. It's now with the Senate, where the bill also has bipartisan support. 

Here’s Five Fast Facts on HB 1960:

‍

1. ⏬ Drop It Like It's Hot: The bill reduces the corporate net income rate from 10% to 9%. If all goes well and state revenues stay favorable, the percentage will drop to 8% in 2025.
2. 💲 Surplus Season: Current state revenues are at $2.7 billion, 8% above projections. As long as this trend continues, this will offset the loss of revenue from the new tax cut, projected at around $400-$450 million per year. 
3. 👌 Majority Rules: The bill passed by a vote of 195 to 8.
4. 😎🏭 Come On In:  Supporters of the bill believe the cut will entice businesses to incorporate in PA, also leading to more jobs for residents. 
5. 🚫 Not A Fan: Those who voted nay said that the bill doesn't do enough to close tax loopholes. Others feel the lost revenue from the tax cut should be used to fund things like housing, education, and health care.

‍

🔥Bottom line: Corporate tax cuts are a good thing as far as attracting new business to the state and boosting PA's employment rate. Crooks will always take advantage of loopholes, but for the majority of honest business owners, this is a win. Let's hope the state's surplus keeps bringing positive changes to the people. 

‍

How do you feel about this business tax cut? Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!

‍

Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!