The Update: What’s Happening in Harrisburg and DC – June 15, 2022

Governor Wolf and some Democrats in the General Assembly have proposed reducing the tax rate for Pennsylvania’s corporate net income tax (CNIT) this year and in future years, while also adopting some limited reforms that would expand the tax base by requiring some multinational corporations that now pay no corporate taxes to pay something. We believe that the governor’s proposal would be a step backwards for the state, both because it would cut the CNIT tax rate too much and because the reforms he proposes are far weaker than necessary, and far weaker than the one he has proposed in previous years. Some reduction in the CNIT rate makes sense but only when coupled with reforms that shut the door on the Delaware and Cayman Islands loopholes completely.

IN THE NEWS

“‘Our budget is a moral document. Where you put your money shows where your priorities are,’ said Nick Pressley, with the We the People campaign.

Pressley backs Gov. Tom Wolf’s plan of sending checks of as much as $2,000 to households making up to $80,000 a year.”

“It’s budget month in Harrisburg. Democratic lawmakers joined We the People PA, Make the Road PA, For Our Future PA, CASA and other advocates on Tuesday to address the $9 billion surplus in state budget funds.

It’s the largest surplus in the history of Pennsylvania and they want to see it invested in disadvantaged communities.”

Advocates in Harrisburg call for lawmakers to spend surplus funds on education, other initiatives

“Budget season in Harrisburg is unusual this year. The state is sitting on a nearly $15 billion surplus, a combination of federal COVID funds and increased tax revenues.

Some groups like, We the People – Pennsylvania, want to see some of that money now. They were joined Tuesday in Harrisburg by members of the Democratic caucus, calling for investing at least $2 billion in initiatives like education, a minimum wage boost, and more.”

“Fiedler said the cost of a corporate tax cut is high: state revenue would be reduced by $600 million next year.

‘We should be investing every dollar we can in schools, parks, libraries, child care, and programs and services right in our neighborhoods. This GOP trickledown economics plan would help big corporations avoid paying taxes — but not help families across my district and local businesses who pay their taxes.’

Fiedler offered her remarks at a Capitol news conference hosted by the PA Budget and Policy Center. She said as the legislature debates the budget, she is standing with workers and calling on large corporations to pay their fair share after making record-breaking profits.”

“A report released in April by the Pennsylvania Budget and Policy Center notes that since the onset of COVID-19, there is even less affordable rental housing available in the state than previously. The website Pennsylvania Business Report noted that the author of the report, Kehinde Akande, said, ‘The two main takeaways are that eviction mitigation is working to keep people in their homes, and it should be expanded, and a permanent rental assistance fund is needed in the state for the large numbers of cost-burdened families in Pennsylvania.'”