PA-Gov: Wolf Reveals Tax, Job and Budget Proposals

wolfWe’ve got ourselves a preview of the budget plans.

Harrisburg has been abuzz with talk of what Gov. Tom Wolf will propose in his first budget address next week. The new Governor put a rest to some of the rumors Wednesday when he announced key pieces of his budget plan to a crowd of business leaders and elected officials in Bethlehem.

Wolf’s budget plan includes a sweeping tax relief package that would cut Pennsylvania’s corporate net income tax in half within two years. If successful, the state would move from the second highest rate in the country at 9.99 percent to the fourth lowest at 4.99 percent.

In addition, businesses would be required to practice “combined reporting,” a method by which multi-state corporations would have to file tax reports that include all of its stores nationwide. Even with combined reporting, “this is a big drop in corporate taxes,” Wolf said in Wednesday’s speech.

A third goal of the tax relief package is to eliminate the capital stock and franchise tax, which Wolf said he, as a businessman, knows is unfair.

“We need to rebuild the middle class, and we can do that by creating good jobs right here in Pennsylvania,” Wolf stated. “For too long the Commonwealth of Pennsylvania hasn’t been a place where businesses want to come, invest and grow. Country-leading high corporate tax rates have slowed existing businesses from expanding and entrepreneurs from growing new ideas here.”

To encourage this job creation, Wolf proposed a $5 million tax credit, dubbed the “Made In Pennsylvania Job Creation Program,” to be distributed among manufacturing companies who excel job creation. And to foster entrepreneurship, he called for a $5 million grant to the state’s Industrial Resource Centers.

“The Commonwealth can help set the table for robust private sector growth to create and retain good jobs while strengthening the middle class,” Wolf stated. “In order to create jobs that pay and an economy that grows, we must acknowledge that success will require investment in our companies and our people, and a new business climate that is welcoming and fair.”

Wolf also announced his intent to increase funding for the states educational and job training programs in an effort to help develop talent locally.

All of Wolf’s budget plans will need to pass the Republican-controlled legislature. Wolf will reveal his entire budget proposal, along with its financial impacts, in front of the General Assembly on Tuesday.

February 25th, 2015 | Posted in Front Page Stories, Governor, Top Stories | 4 Comments

4 thoughts on “PA-Gov: Wolf Reveals Tax, Job and Budget Proposals”

  1. Isaac L. says:

    I would posit that it’s actually the reverse – if there is a profit to be made, businesses will expand to meet demand, but if there isn’t, they will simply pocket the extra money because there is no incentive to hire another employee, taking on the added expense and liabilities, unless it is absolutely necessary and the current employees cannot possibly increase productivity. On the flip side, increasing the take home pay of your average John Q. Public frees up funds to buy products and services, stimulating demand. This is especially true for lower income workers who likely have been putting off purchases – waiting to get new tires for the car despite the low tread or replace the leaky water heater or even just take the family out to a nice meal for once. For a technical explanation, one could look at the Marginal Propensity to Consume, but I feel like the examples given are pretty intuitive.

    Gov. Wolf proposed an increase from 3.07 to 3.7 percent for the PIT, but families under a certain threshold won’t pay PIT. Provided this passes the Uniformity Clause, it would likely be a huge boon capturing the best of both worlds.

  2. Jason says:

    I am hearing an increase in personal income tax rate, increase in sales and use tax rate, increase items to be taxable for sales and use tax and some property tax relief. Should be interesting next week!

  3. Jared says:

    The first part of your statement I don’t have much a problem with. The point may be debatable. However the second part I’m sorry to say is pure crap. Why? Simply because I would save about 100 dollars In a year if the, personal rate was cut. Now I know you probably know a guy that can conjure money from air but I can’t say that saving myself 100 dollars will allow me to invest in squat. Care to try again?

  4. Ross Schriftman says:

    This sounds good. Cutting business taxes can actually result in more revenue by creating more jobs and an improved economy. The article didn’t mention whether he is proposing any changes to the personal income tax which is now at 3.07% of earnings. Lowering that rate would help every worker in the Commonwealth leaving more money in their pockets to spend, save and invest creating more economic growth and less government dependency.

Comments are closed.