A state senator from Philadelphia has a plan to make Pennsylvania more business-friendly.
Sen. Anthony Hardy Williams wants to eliminate Pennsylvania’s corporate net income tax — which he calls unpopular and business-repelling — and replace it with what he calls a “commercial activity tax.”
Williams said it would be a broad-based tax on gross receipts.
“This allows the small-business owner,” Williams said, “who is forced to pay a minimum wage of a certain amount, may be affected by health-care considerations, to now be able to get reduced taxes and increased services so they can in fact hire that kid or ex-offender. They won’t be paying out as in terms of their own gross receipts.”
Williams said the tax is based on the principle that businesses should pay for the privilege of selling to Pennsylvania consumers.
Philadelphia City Councilman Bill Green said he will do anything he can to help push the legislation in Harrisburg.
“This seems to be something that can be a bipartisan issue,” Green said. “This is a revenue-neutral proposal that is going to make it easier for Pennsylvania businesses to compete and for Pennsylvania as a state to attract more businesses from other states, or new businesses that are starting up.”
Green said the change will result in a more fair and efficient tax system.
His fellow council member Maria Quinones-Sanchez agreed, saying it’s time to make the Keystone State more competitive.
Green and Quinones-Sanchez proposed similar legislation in Philadelphia.