Commonwealth Foundation President and CEO Charles Mitchell released the following statement in reaction to Congress passing the Tax Cuts and Jobs Act:
In the 31 years since Congress last reformed the tax code, it has become a bloated and burdensome drag on the economy, hindering economic expansion, job creation, and wage growth for Pennsylvania families. In fact, Pennsylvanians spent nearly one-third of the year working to pay their local, state, and federal tax bills in 2016.
But under the Tax Cuts and Jobs Act, middle-income families will see their after-tax income rise an estimated $670, according to the Tax Foundation. For families struggling to make ends meet, extra money at the end of the month could make all the difference.
Additionally, Pennsylvania businesses currently face the highest effective corporate income tax rate in the industrialized world when the state and federal rates are combined. That’s why this reform’s changes to the federal corporate income tax rate are so critical. Lowering the federal rate from 35 to 21 percent will ease this burden, make our state more competitive in the global marketplace, and promote business investment. As a result, this bill will help create an estimated 13,000 jobs in Pennsylvania and 339,000 jobs nationwide.
After four state tax hikes in the last eight years at the state level, Pennsylvanians should cheer the historic federal tax reform bill passed by Congress this week. This reform will put more money back in the pockets of Pennsylvania families and job creators—where it belongs.
Commonwealth Foundation experts are available for comment. Please contact Jonathan Reginella at 717-943-1796 or email@example.com to schedule an interview.
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