Pennsylvania should continue improving its tax and legal climate if policymakers are serious about making the Commonwealth more affordable and competitive, PA Chamber Vice President of Government Affairs Neal Lesher told state lawmakers during a Sept. 1 hearing on affordability.

Testifying before the House Republican Policy Committee, Lesher highlighted several tax reforms the PA Chamber believes would help employers invest, grow, and create jobs in Pennsylvania. He expressed support for accelerating the state’s Corporate Net Income Tax reduction, expanding Net Operating Loss deductions for small businesses, adopting a state and local tax deduction workaround, increasing the vendor discount, and eliminating accelerated sales tax payments.

Lesher noted that Pennsylvania has made significant progress since lawmakers began reducing the Corporate Net Income Tax in 2022, but said additional work is needed to improve the Commonwealth’s competitive position.

“For businesses, cash is like water,” Lesher said. “It flows to the least restrictive place.”

Lesher also emphasized the importance of simplifying Pennsylvania’s tax code and reducing compliance burdens that often require businesses to spend additional resources on accountants, attorneys, and other professional services. He argued that affordability discussions should include legal reform, noting that litigation costs can contribute to higher insurance premiums and other business expenses.

“I really don’t think you can have a conversation on affordability in Pennsylvania without at least touching on lawsuit abuse reform,” Lesher said.

The hearing also included an overview of the Pennsylvania Growth and Affordability Plan (GAP), a 10-bill legislative package being developed by House Republicans. According to Rep. Thomas Kutz (R-Cumberland), the package will address seven policy areas: childcare, personal health and wellness, energy, small businesses, large and new businesses, housing, and student loans. In addition to testimony from the PA Chamber, lawmakers heard from representatives of PPL Electric Utilities and the real estate industry about rising energy costs and Pennsylvania’s housing shortage.

For the PA Chamber, the discussion reinforced a familiar message: improving affordability requires more than lowering household costs. It also requires policies that make Pennsylvania a more attractive place to invest, expand, and do business. Through tax competitiveness, regulatory simplicity, and legal reforms, the Chamber argues policymakers can strengthen both affordability and long-term economic growth across the Commonwealth.