Governor Wolf is seeking to portray his budget plans as a crucial step to maintaining and rebuilding the commonwealth’s middle class.
In the new video, the businessman-turned-Governor cites his “chief” challenge in the private sector – finding skilled and educated workers – as reason to “invest in institutions that provide those skills.”
The Governor did not specify which institutions these were in the video, however, he did stress the need to bring back manufacturing, calling such jobs “good” and “family sustaining.”
Another of Wolf’s major points was his desire to significantly lower Pennsylvania’s relatively high corporate income tax of 9.99% down to 4.99% – the fourth lowest rate in the country.
In addition, the Governor wants to close the Delaware loophole, citing the fact that “more than 70% of companies that do business in Pennsylvania don’t pay corporate net income taxes at all” as reason for its closure.
“We still have the most innovative, resilient people anywhere,” said Gov. Wolf. “But the reality is that times have changed, and ideas that may have worked in the past simply aren’t working anymore. Now is the time to take the bold steps necessary for Pennsylvania to succeed in the modern economy.”
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One Response
While I deplore the race to the bottom as states compete with each other to lower taxes that can be used to encourage the production of public goods that serve all the people, the Governor has the right idea in getting rid of the Delaware Loophole in trade for a lower but effective corporate income tax. Investing in skill building is obviously needed, but we also need to equip workers to demand more of a share in profits that their increased productivity warrants. Gov. Wolf did this in his own company; and other CEO’s are now recognizing that their company’s bottom line is improved by rewarding their workers. However, voluntary decisions would be moved along faster with collective bargaining and with workers sitting on company boards as in Europe.