HARRISBURG â€" More than 35 years after the federal government showed cutting taxes can generate additional revenue, state Rep. Greg Rothman (R-Cumberland) today at a Harrisburg news conference unveiled legislation that would reduce tax rates for some businesses in Pennsylvania.
Rothman was joined by Jimmy Kemp, son of former Congressman Jack Kemp (R-N.Y.), who co-sponsored the 1981 federal law that cut taxes and generated increased federal revenues.
â€œWe have seen that cutting tax rates can lead to increases in government revenues,â€ said Rothman, who is introducing legislation to reduce Pennsylvaniaâ€™s Corporate Net Income (CNI) Tax rate from 9.99 percent to 5.99 percent beginning in 2018. â€œWhen businesses are able to keep, save and invest more of their own money, they can stimulate the economy which results in more revenues for the government.â€
Pennsylvaniaâ€™s CNI tax rate currently is one of the highest in the nation.
Rothman said the federal law co-sponsored by then Congressman and later vice presidential candidate Jack Kemp provided the rationale for his own state legislation.
â€œThose who will try to argue that we are somehow giving something to corporations miss the point that this is not the governmentâ€™s money,â€ Rothman said. â€œGovernment often gives companies money through grants or other programs. My bill instead would allow some Pennsylvania businesses to keep and invest more of their own money.â€
Jimmy Kemp serves as the president of the Jack Kemp Foundation, a 501(c)(3) charitable organization dedicated to advancing the public policy ideas formulated by its namesake.
Jimmy Kemp spoke about the legacy of economic growth and revenue enhancements spurred by the passage of his fatherâ€™s federal legislation.
Rothmanâ€™s House Bill 1584 will be assigned to a House committee for consideration.