Pennsylvania Democratic Gov. Tom Wolf, who signed a state corporate tax cut, is supporting the Democrats’ 15% federal corporate minimum tax in the Inflation Reduction Act.
“I’ve been calling for a lower Corporate Net Income Tax rate since I first took office and I’m thrilled that we were able to make this happen in my last budget,” Wolf said in a statement on Monday. “This lower rate is a game-changer for business in PA. We’re going to ensure tax fairness, make Pennsylvania a top location for businesses, and bring new, good-paying jobs here for Pennsylvanians.”
According to the Pennsylvania Department of Revenue, the tax is “levied at the rate of 9.99 percent on federal taxable income, without the federal net operating loss deduction and special deductions, and modified by certain additions and subtractions.”
Democrats are seeking to pass the massive spending bill with the federal minimum corporate tax rate along party lines using the budget reconciliation process. The measure already passed the Senate 51-50, bypassing the legislative filibuster.
The U.S. Chamber of Commerce has criticized the new federal minimum corporate tax rate in the bill, which also includes funding for the hiring of 87,000 additional IRS agents to step up enforcement.
Wolf was asked for his opinion of adopting a federal 15% minimum corporate tax rate after his state just reduced its corporate tax rate.
“I think the two are separate,” Wolf said in an interview after the signing of the CHIPS bill at the White House on Tuesday. “In Pennsylvania there’s bipartisan support for Pennsylvania’s corporate income tax, it’s just too high.
Nationally, the Democrats are pushing for a 15% minimum corporate tax rate that would apply to large businesses with $1 billion or more in profits.
When asked if he supports a 15% minimum corporate tax rate at the federal level, Wolf replied, “Yeah.”