The Independent Fiscal Office released its yearly analysis of Governor Tom Wolf’s budget proposal.
According to State House Sound Bites the report shows Wolf’s revenue projections are correct, but that is only if he can get his proposals through the state legislature. Many of Wolf’s proposals are similar to what he has proposed in his previous budgets and been unable to get passed.
The main part of Wolf’s proposal is the severance tax he campaigned on in 2014 and has included in every budget proposal since taking office. The IFO does say that Wolf’s first year projections of revenue from the tax are $35 million more than the IFO predicts, but the difference evens out as the years pass.
The IFO also had positive remarks on Wolf’s plan to increase the minimum wage and reform Pennsylvania’s corporate tax code.
The report states that increasing Pennsylvania’s minimum wage to $12 an hour from the current $7.25 an hour would put Pennsylvania in line with the surrounding states.
“Currently, all surrounding states have a minimum wage that exceeds Pennsylvania by at least $1.00 per hour for 2019, and two states (New York and Maryland) have a minimum wage that is at least $2.00 higher. If Pennsylvania’s minimum wage increases to $12.00 per hour in 2021, it would rank eighth highest out of all states and the District of Columbia for that year,” the report reads.
The report states that the increase in minimum wage would result in the loss of 33,000 jobs in the state.
On corporate tax reform, State House Sound Bites say’s the “corporate tax overhaul would broaden the commonwealth’s tax base by instituting combined reporting, a practice wherein corporations would report the income of their subsidiaries in other states, not just in Pennsylvania.”
Wolf’s proposal, while increasing revenues for the first few years, would end as a loss as the years continue according to the IFO.
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6 Responses
either increase minimum wage to 12.00 in pa or watch your state budget falter in 2019 as 90% of the state wont be filing taxes anymore under trump new law. 13,000 make under it and ur off scott free for taxes or filing requirements.
wolf its simple its either u increase minimum wage or lose all tax credits for millions of workers. as 7.25 is no longer a taxable income in pa. abolished by trump tax laws of 13,000 threshold will now increase to near 15,000 due to 10% inflation.
“The report states that the increase in minimum wage would result in the loss of 33,000 jobs in the state.”
LOL! But its still a good policy, because reasons, right?
The actual quote from the article is:
“If the minimum wage goes up, Knittel said more than one million full and part-time workers will benefit, but around 33,000 jobs will be eliminated.”
Republicans in response: “Taxes, taxes, taxes, taxes, taxes, taxes, oh wait I want to say taxes more! Taxes, taxes, taxes, taxes, taxes. It’s impossible for us to not include a single sentence without using the word taxes so I’ll say it again taxes, taxes, taxes, taxes, taxes, taxes, taxes, omg taxes, taxes, taxes, taxes, taxes, taxes, taxes, taxes, taxes taxes, taxes, taxes.”
Dear Governor Wolf-
If you REALLY want to get your severance tax, use the Departments of Health and Environment to shutdown fracking, and stop approving new drilling, pipelines, etc. It’s a matter of public health/safety. The State of New York used Pennsylvania’s problems as the justification to halt fracking there. The Sunoco pipeline in SEPA has proven itself unsafe.
The oil/gas industry will offer you 10% severance tax if you don’t shut them down.
So, if you are going to continue selling out the health and welfare of the citizens of Pennsylvania to the oil/gas industry, then at least sell us out for 10% tax, instead of the 0% you keep settling for.