Senator Hutchinson Comments on Governor’s Tax and Spend Budget

Senator Scott Hutchinson, R-21 and Chairman of the Senate Finance Committee, issued the following comments in response to Governor Wolf’s proposed $40.2 billion General Fund Budget for Fiscal Year 2021-22, which includes a $3.1 billion spending increase, a Personal Income Tax (PIT) rate hike from 3.07 percent to 4.49 percent, imposition of Marcellus Shale extraction tax, and elimination of funding for broadband expansion as well as vital agricultural and health programs and services.

“Even as Pennsylvania is struggling to recover from the pandemic, the Governor certainly picked perhaps the most inopportune time to call for an 8.2 percent increase in state spending and a 46.3 percent increase in the state’s PIT rate.

“The Governor’s proposal is a thinly-veiled attempt to impose a graduated income tax in Pennsylvania, which runs counter to our laws and our constitution. His proposal would set a dangerous precedent.

“Pennsylvania’s one million small businesses would be devastated by the rate increase since these pass-through businesses (i.e. S corporations, partnerships, etc.) pay business taxes at the PIT rate. Many are already barely surviving the dual threat of the pandemic and the Governor’s draconian closure orders. They simply cannot be subjected to an additional tax burden to support the Governor’s spending wish list.”

 

Contact:          Justin Leventry           jleventry@pasen.gov