Mar. 10, 2016
DUBOIS – Northern Pennsylvania legislators of the House Republican Caucus are rejecting Gov. Tom Wolf’s demand for massive tax increases, including an increase to the Personal Income Tax as part of his annual budget proposal. That 11 percent tax increase (retroactive to Jan. 1, 2016), along with several others, would amount to an annual tax hike of $2.7 billion.
Speaking at a small business in Clearfield County today, legislators said Wolf’s proposal for extensive tax hikes is being opposed by a large majority of Pennsylvanians – working families, senior citizens and small business owners.
The governor is seeking $7.4 billion in supplements for the current fiscal year, which is a spending increase of 5.8 percent for 2015-16 and a 7.9 percent increase for 2016-17.
“Pennsylvanians have made it very clear that they cannot afford the governor’s unreasonable and irresponsible proposals for new taxes. The idea of an 11 percent Personal Income Tax hike, retroactive to Jan. 1, hits not only Pennsylvanians’ paychecks, but also their savings accounts. We are here to stand up for taxpayers and ensure they can keep their hard-earned money,” said Rep. Matt Gabler (R-Clearfield/Elk).
The Klark family, owners of Penn Central Door in DuBois since 1989, said Wolf’s increased taxes could be devastating to small businesses.
“We are very concerned about the impacts that a higher income tax will have on our business. Less money in people’s pockets means less opportunity for us to serve our customers. That hurts our employees, who would also have to pay the higher taxes themselves. It is already a challenge to do business, and it just seems like the governor wants to make it harder,” said Andy Klark, President of Penn Central Door.
House Republicans also called on Wolf to release education funds to prevent the closure of public schools in the state. Wolf cut $3 billion in basic education funding as part of his partial veto of the House-passed budget. The lawmakers said the governor should work with the Legislature to develop solutions that keep the state operating without resorting to broad-based tax increases.
“The General Assembly passed three different budgets which would have brought record funding to public education. It is frustrating that the governor completely vetoed the first two and partially vetoed the third, leaving schools across the Commonwealth without needed funds and some on the brink of closure,” said Rep. Donna Oberlander (R- Clarion/Armstrong/Forest). “It is time for the governor to stop using our school children as negotiating leverage and to work with his co-equal branch of government toward a final budget.”
Rep. Martin Causer (R-Cameron/McKean/Potter), chairman of the House Agriculture and Rural Affairs Committee, joined the call for earnest negotiations to complete both this year’s and next year’s budgets. “It’s time for the governor to release the hostages. Students and their families, teachers, health care providers, farmers and even 4-H members are being harmed by his insistence on higher spending and taxes people can’t afford. We need responsible budgets that respect the taxpayers who foot the bill.”
The lawmakers also expressed frustration that while the administration claims to want to close an expected structural deficit, it proposes increasing spending by billions of dollars. The House members pointed to their recently unveiled PennSAVE initiative as a means to realize savings, accountability, value and efficiency in state spending.
“The PennSAVE initiative will allow us to review state government operations and procurement practices to realize ways to be more innovative in savings and efficiencies,” said Rep. Kerry Benninghoff (R-Centre/Mifflin). “We invite the public to join us by submitting suggestions for cost-saving steps.”
The lawmakers invited Wolf to join them in developing a responsible budget for the 2016-17 fiscal year while releasing funds already appropriated for education and other essential services in the state.
For more information on the PennSAVE initiative,
please visit the House Majority Policy Committee website and questionnaire.
Representative Matt Gabler
75th Legislative District
Pennsylvania House of Representatives
Media Contact: Tom Pyne
717.798.1699
tpyne@pahousegop.com
Rick Leiner
717.497.8478
rleiner@pahousegop.com
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