Calling it a budget that will “rebuild the middle class,” Gov. Tom Wolf released a $33.8 billion budget that includes income and sales tax hikes of 16 percent, a group of new sales taxes that would generate an estimated $4.7 billion in revenue.
That’s more than enough to cover the 2.3 billion deficit he inherited and the $1.6 billion in mandatory increases state law requires.
However, about half would be returned to residents in the form of school property tax reductions, cutting the average homeowner’s school tax in half, and eliminating property taxes for some seniors entirely.
He would further that end by increasing the state’s portion of school funding by 15 percent.
“For the first time in 40 years we are proposing to increase the state’s share of funding for public education to 50 percent,” he said during his March 3 address in Harrisburg.
“The funding formula we are proposing would provide more money to all districts. It will ensure that education funds are distributed in a manner that is efficient, equitable and transparent.”
In addition to the school tax cuts, Wolf also proposed cutting the state’s corporate net income taxes in half by 2018, with an immediate cut from 9.99 percent to 5.99 in 2016. He said the cuts would allow businesses to create new jobs.
“My budget rebuilds the middle class in Pennsylvania starting with three priorities: jobs that pay, schools that teach, and government that works. Pennsylvania can have a bright future, but we cannot simply do the same things over and over and hope for different results,” he said. “My plan balances the state budget, cuts taxes to create jobs with good middle-class wages, makes historic investments in education to prepare our kids for the jobs of tomorrow, and reduces the total tax burden on the average middle-class homeowner. We need to think differently and do things differently. It’s time for bold change.”
Wolf said the state should partner with the energy industry and make Pennsylvania a leader in energy manufacturing and development, and build new businesses by using natural gas as a “feedstock” as well as an energy resource. Pennsylvania can be a leader in industries like biotech, materials, chemicals and life sciences.
He said his budget would make Pennsylvania a national leader in clean energy like solar and wind, while working to protect coal and continue the traditions of harvesting timber and hardwood.
Wolf also said changes he proposes to pension management will cut the $700 million paid in fees alone to fund managers and will cut long-term liability by $10 billion.
He also called on legislators to raise the state minimum wage to $10.10 per hour.
“Our state has also long believed that hard work should be rewarded. Yet a full time worker earning minimum wage ears about $15,000 a year. For a family of four, that’s below the poverty line,” he said. “About 20 percent of Pennsylvanians live on that edge every day. I believe that nobody who works full time should be forced to live in poverty.”
Though the Republican controlled legislature may like the drop in corporate taxes, it is unlikely they will approve all Wolf’s proposed increases including the two new taxes he’s proposed on shale gas. A state budget is supposed to be signed before the end of the fiscal year, June 30.
Follow @NewPghCourier on Twitter https://twitter.com/NewPghCourier
Like us at https://www.facebook.com/pages/New-Pittsburgh-Courier/143866755628836?ref=hl
Download our mobile app at https://www.appshopper.com/news/new-pittsburgh-courier
About Post Author
