PA
Pennsylvania Senate Bill SB345

Pennsylvania 2023-2024 Regular Session

Pennsylvania Senate Bill SB345

Introduced
3/14/23  
Refer
3/14/23  

Caption

In corporate net income tax, further providing for imposition of tax.

Impact

The passage of SB345, if successful, is expected to impact state taxation significantly, reducing the revenue from corporate taxes initially but aiming for long-term economic benefits through increased business activity. The phased reduction in tax rates from the current structure of 9.99% to as low as 4.99% over several years is in line with initiatives to make Pennsylvania an attractive state for business operations. Policymakers believe that lowering the corporate tax burden will encourage companies to expand or relocate to Pennsylvania, boosting job creation and overall economic growth.

Summary

Senate Bill 345, introduced in the Pennsylvania General Assembly, seeks to amend the Tax Reform Code of 1971 by making significant adjustments to the corporate net income tax rates. The bill proposes a gradual decrease in the tax rates over a period of several years, ultimately leading to a reduction to 4.99%. This modification reflects a broader initiative to revise tax structures to enhance the economic environment for businesses operating within the state. The sentiment surrounding this change is primarily pro-economic growth, aiming to stimulate business investments in Pennsylvania.

Sentiment

The sentiment regarding SB345 appears to be largely positive among proponents, including various business groups and legislators who endorse tax cuts as a means to foster a more business-friendly environment. However, there are concerns from some quarters about the potential loss in state revenue, which could affect funding for public services. Critics argue that lowering these tax rates may undermine the state’s fiscal stability and hinder its ability to invest in essential services and infrastructure.

Contention

A notable point of contention revolves around the immediate financial implications of the bill on the state's revenue streams. While supporters advocate for the long-term benefits of increased business growth and employment opportunities, opponents warn about the risks of reduced revenues that may lead to budget shortfalls. The debate encapsulates broader discussions on fiscal policy, the balance between taxation, and investment in public goods, with advocates on both sides presenting compelling arguments.

Latest PA SB345 Activity

View All Events: PA 2023-2024 Regular Session SB345

Companion Bills

No companion bills found.

Previously Filed As

PA HB1482

In corporate net income tax, further providing for imposition of tax.

PA HB1414

In corporate net income tax, further providing for imposition of tax.

PA HB1447

In corporate net income tax, further providing for imposition of tax.

PA HB760

In corporate net income tax, further providing for imposition of tax.

PA SB207

In corporate net income tax, further providing for imposition of tax.

PA HB1550

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA SB858

In mutual thrift institutions tax, further providing for imposition, report and payment of tax and exemptions.

PA HB788

In mutual thrift institutions tax, further providing for imposition, report and payment of tax and exemptions.

PA SB576

In mutual thrift institutions tax, further providing for imposition, report and payment of tax and exemptions.

Similar Bills

No similar bills found.