June 25, 2026
Executive Summary: Pennsylvania has spent more than two decades reducing corporate taxes and narrowing its corporate tax base, leaving the Commonwealth with less recurring revenue to fund public schools, transit, infrastructure, health care, workforce development, and other public investments. This analysis finds that Pennsylvania now collects an estimated $2.21 billion to $2.99 billion less each year in corporate net income tax revenue than it would if it had maintained its historical relationship to national corporate tax collections. At the same time, the evidence does not show that lower corporate tax payments have produced stronger economic growth in Pennsylvania. Strengthening the corporate tax base through combined reporting, especially worldwide combined reporting, would help reduce profit shifting, improve tax fairness, and better align corporate tax liability with real economic activity in the Commonwealth.