Pennsylvania’s corporate tax policies and tax rate put the Commonwealth at a competitive disadvantage. Recent changes including improving the tax appeals process and eliminating the Capital Stock and Franchise Tax were steps in the right direction; however, comprehensive reforms of and reductions in business taxes are still necessary to help stimulate economic development.
Business taxes affect business decisions, job creation and retention, plant location, competitiveness, and the long-term health of a state’s economy. Thus, a state with lower tax costs will be more attractive to business investment and more likely to experience economic growth.
The PA Chamber supports local tax policy that promotes a competitive business climate and efforts at the state level that encourage local taxing authorities to continually pursue this objective.