When our lawmakers in Harrisburg make changes to the tax code, they should keep three principles in mind: fairness, simplicity and competitiveness.
To create a fair tax code, lawmakers should strive to eliminate corporate welfare in the budget, which entails repealing existing subsidies that give certain businesses a leg-up. We shouldn’t be picking winners and losers.
To create a simpler tax code, lawmakers should eliminate confusing and outdated income classifications. Pennsylvania's low and flat 3.07% income tax rate is great for residents and should be protected by elected officials. Nevertheless, we need to address the number and variety of allowable local taxing authorities. We also need to adopt simple, clear assessment cycles for real property taxes.
To make our state more competitive, we need to lower our 9.99% corporate tax rate, which holds Pennsylvania’s businesses back. Our tax code should be designed to allow our businesses to succeed.
Tell lawmakers that, when it comes to reforming our tax code, they need to keep these principles in mind.