Job Creation Package Represents a Path to Prosperity
As the Commonwealth continues to recover from the Great Recession and the poor economic policies of President Barack Obama’s administration, the most important issue to Pennsylvanians remains job creation and the economy. In order to expand our economy and further reduce unemployment, I plan to introduce five coordinated pieces of legislation designed to lower taxes and empower job creators. I believe the result of this legislation will be the creation of an environment in which our economy grows, more jobs are created and more Pennsylvanians have a path toward prosperity.
The first part of this plan is to make our corporate tax structure competitive with the rest of the nation. Currently, Pennsylvania is at a competitive disadvantage compared to the rest of the country as our 9.99 percent Corporate Net Income Tax (CNI) is the highest flat tax in the country, standing at 3.3 percent higher than the national average. This plan would lower our Corporate Net Income Tax to 6.49 percent, in line with many states across the nation. It would also make Pennsylvania more appealing to job creators. History has already shown this approach to be successful, as the phasing out of the Capital Stock and Franchise Tax grew our economy. This phase-out saw the Commonwealth lose $300 million in tax revenue, but saw revenue increase from the Corporate Net Income Tax by $800 million and billions in additional revenue from the Personal Income Tax. These revenues increased as companies grew and hired more workers.
To foster an environment for economic growth, it is not enough to just lower taxes. Creating an environment for growth requires a set of clear consistent and non-harmful regulations. Perhaps no greater example of inconsistent regulations in Pennsylvania exists than the difference between state and local environmental regulations. Often companies will comply with state regulations, but face shifting local regulations. I plan to introduce a bill to create a set of uniform environmental policies for companies operating in the Commonwealth. My legislation would allow the Department of Environmental Protection to enforce a set of clear and predictable regulations.
Another bill I plan to introduce soon will seek to pre-empt local governments from regulating companies to provide a certain amount of paid sick leave. Despite the best of intentions, regulating companies to provide a certain number of paid leave hours is a clear reminder of how “big government” can hurt local economies. The impact of a one-size-fit-all regulation such as this is economically significant; it increases costs and discourages companies from hiring. By pre-empting local governments from mandating leave policies for employers, we empower job creators; government should not, nor is it qualified to, tell job creators how to operate their business. This legislation would help grow our economies by lowering costs on job creators, allowing them to hire more workers and expand their companies.
The final part of my plan to foster an environment for job creation and economic growth is to provide financially distressed governments with tools to improve their services and reduce their costs. My legislation would provide training to local governments in lean management practices used by the Commonwealth. The result of this legislation would be the improvement of local government for constituents, by providing government services in a more effective and efficient manner.
Currently, at the state level, this approach has saved taxpayers over $700 million. At the local level, the reduction in outdated and inefficient processes will generate cost savings, which in turn can be used for economic development. Additionally, by improving government processes and regulations, it will become easier to start or expand businesses that grow our local economies. The result of this legislation will not only improve local government service for Pennsylvanians, but also provide a better environment for job creators to start or locate their business and hire more workers in the areas hardest hit by the Great Recession.
By lowering taxes and improving our state and local regulatory structure, our economy would grow and more Pennsylvanians will have good-paying jobs. As I enter into this session, I remain dedicated to working with my colleagues to create an environment where more Pennsylvanians are working and have a path toward prosperity.
Representative Seth Grove
196th District
Pennsylvania House of Representatives

Media Contact: Nick Ruffner
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