Supporters of business-friendly tax structure are touting the passage of a bill in the state House that would lower the corporate income tax rate. But the proposal’s future is murky.
House lawmakers have passed a measure that would bring the corporate net income tax rate down by three percent over the next several years.
Backers say the lost revenue from the tax cut would be offset by stopping some companies from shifting some of their expenses to low-tax states.
Governor Corbett says he’s mindful of his campaign promise to look into reducing the corporate net income tax (CNI).
“But I, at this point today, don’t know that we’re in any position to reduce the CNI in order to balance this budget,” said Corbett.
The bill’s sponsor says he’s still hopeful his plan can be a part of budget negotiations. Indiana County Republican Representative Dave Reed says businesses may not be in favor of the legislation because they themselves benefit from the so-called “Delaware loophole” that allows them to shift their costs to other states.