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Thursday, April 3, 2025

Hearing discusses reforms needed for job-creating tax policies

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State Representative Zach Mako | Pennsylvania 83rd Legislative District

State Representative Zach Mako | Pennsylvania 83rd Legislative District

On Friday, Rep. Zach Mako (R-Lehigh/Northampton) and the House Republican Policy Committee, chaired by Josh Kail (R-Beaver/Washington), held the second hearing in a series focused on economic growth through business-related tax reform in Pennsylvania.

The session titled “Job-Creating Tax Reform” included testimonies from Neal Lesher, director of government affairs at the Pennsylvania Chamber of Business and Industry, and Melissa Morgan, assistant state director at the National Federation of Independent Business (NFIB).

Rep. Mako expressed concerns about Pennsylvania's current tax code, stating that it is "stifling growth" and inhibiting the state's potential. He advocated for reducing the Corporate Net Income Tax and removing limits on net operating loss carryforward deductions to enhance opportunities for Main Street businesses. Mako emphasized making Pennsylvania a competitive environment for business.

The complexity and burdensome nature of Pennsylvania's tax code were highlighted as issues affecting both large and small businesses. Testifiers Lesher and Morgan supported legislative changes to improve conditions for small businesses and encourage entrepreneurship in the state. Morgan described the existing net operating loss carryforward deduction as a “startup penalty.”

Chairman Kail shared his personal connection to business growth: "My family came to the United States to chase the American dream," he said, underscoring his commitment to reforming business taxes to facilitate job creation.

Further hearings are planned with Rep. Tom Jones hosting on Thursday, April 18 at East Donegal Township Building in Marietta.

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