Mihalek Proposes Tax Changes to Boost Economic Recovery

February 17, 2021

HARRISBURG – Rep. Natalie Mihalek (R-Allegheny/Washington) was appointed to the House Appropriations Committee for the 2021-22 Legislative Session. She is working to create a responsible budget that limits state spending and does not raise any taxes. Mihalek issued the following statement regarding Gov. Tom Wolf’s proposed budget and what she is proposing instead:

“COVID-19 has weighed heavily upon us all, creating an especially challenging environment for businesses, workers, and families across the Commonwealth and beyond. We are now in the midst of an economic recession with tens of thousands of Pennsylvanians leaving the workforce and finding themselves without employment opportunities, in addition to more businesses closing every day, unable to weather the storm.

“When the governor unveiled his budget proposal earlier this month, I was hopeful that it would create a roadmap of the challenges that lie ahead and viable solutions to those challenges. Instead, he delivered a series of empty promises for struggling Pennsylvanians, and on top of that a tax increase, the highest increase to the Personal Income Tax ever proposed - an astonishing 46.25% when so many are already on their last let.

“He has coupled the proposed Personal Income Tax increase with an increase to the special poverty provision found in our tax code attempting to mask tax relief within a massive tax hike which is not relief for anyone.

“The governor and I do agree on one point, and that is that our lowest wage earners should not bear the burden of our Personal Income Tax. And in my own view, our businesses as well as Pennsylvania’s ability to attract new businesses and industries would be well served to finally take steps to reduce our Corporate Net Income Tax (CNIT) - one of the highest in the nation.

“I am proposing legislation to amend our tax code to reduce the CNIT by 1% each year over the next four years in order to provide real relief to our businesses now and create an attractive environment for businesses to come to Pennsylvania in the years ahead. My legislation would also provide tax relief for the working poor by increasing the special poverty provision tax exemption thresholds, something that has not been done in nearly two decades. Coupling tax relief for low-income Pennsylvanians with the removal of a major barrier to attracting new businesses should be a key ingredient to our economic recovery. Providing both businesses and workers tax relief now will help to ensure Pennsylvania is on a path to success rather than a path of economic destruction that a massive tax increase would be certain to bring.”

Representative Natalie Mihalek
40th Legislative District
Pennsylvania House of Representatives
Media Contact: Michelle Swab
717.260.6325
mswab@pahousegop.com
RepMihalek.com / Facebook.com/RepMihalek