HARRISBURG – Gov. Tom Wolf today issued his proposal for Pennsylvania’s 2021-22 budget. The governor has proposed a budget of $40.2 billion, which is an increase of $3 billion, or 8.2% over the 2019-20 budget. Focal points of the governor’s proposal included a 46% increase in Personal Income Tax (PIT) rates, an increased minimum wage and a severance tax on natural gas production.
Rep. David Millard (R-Columbia) issued the following statement in response:
“The governor’s proposed increased tax rates would not be limited to “wealthy” Pennsylvanians. Working, middle-class families would pay higher taxes in order to fund the governor’s inability to control his administration’s spending. Considering that most of Pennsylvania’s small businesses also pay the PIT rather than the Corporate Net Income Tax, this tax increase would once again hurt the two demographics that are struggling the most through this pandemic.
“An increased minimum wage would put even more of a burden on our small businesses. They are already struggling just get by, and many would not survive a sudden increase in Pennsylvania’s minimum wage. The Independent Fiscal Office has indicated that a minimum wage increase to $12 would result in the loss of 27,000 jobs.
“And as a cherry on top, the governor has proposed to further tax and harm one of Pennsylvania’s most critically important industries. Natural gas was designated as ‘life sustaining’ in the beginning stages of the COVID-19 pandemic, as their base ingredients for plastic are essential for PPE and vaccine development. The last thing we should be doing is singling out an industry that is so critical to our pandemic response, especially when Pennsylvania currently ranks 44th out of 50 in vaccine distribution.
“Overall, this proposed budget does nothing to promote Pennsylvania’s pandemic response. We in the General Assembly will prioritize economic recovery, supporting small businesses and effectively developing and distributing the COVID-19 vaccine.
“Pennsylvanians deserve better.”
Representative David Millard
Pennsylvania House of Representatives
Media Contact: Kevin DiGuiseppe