House Republicans Call for Lower Taxes, Demand Money Go Back to Taxpayers
4/14/2008
Legislation will stimulate economy, create more jobs
 
A day before the April 15 tax deadline, Rep. Mike Turzai (R-Allegheny), chairman of the House Republican Policy Committee, and his colleagues called for a cut in taxes and government spending and reprioritizing the needs of middle-class families and small business. 
 
“Over the past five years, the governor’s priorities have been focused on increasing taxes, spending and borrowing,” said Rep. Mike Turzai (R-Allegheny), chairman of the House Republican Policy Committee. “Our goal is to put money back into taxpayers’ pockets and the economy. We need to reduce spending and cut taxes. We need to focus on middle-class families, allowing them to keep their hard earned money. We need to help employers by providing business tax relief.”
 
Since Gov. Ed Rendell took office, Pennsylvania has taken an economic downturn. According to the U.S. Department of Labor, in the past five years, Pennsylvania has lost 79,000 manufacturing jobs. A Tax Foundation study found Pennsylvania’s combined corporate tax rate to be the second highest in the world. The American Legislative Exchange Council ranked Pennsylvania 37th out of 50 states in economic outlook and 44th in economic performance.
 
During this time, as the Commonwealth lost family sustaining jobs and raised taxes on business, Rendell increased state spending by approximately $7 billion. In his first term, he increased borrowing by $3.15 billion, which will cost more than $4.76 billion to repay. He is proposing an additional $4.37 billion in borrowing for 2008. If enacted, his new borrowing proposals will cost $6.47 billion to payback. Rendell has taken Pennsylvania in a negative direction and its hard-working taxpayers are paying the price, Turzai said.
 
House Republicans have introduced legislation to improve Pennsylvania’s economy. Their Economic Stimulus Tax Cut proposal, House Bill 2270, will make Pennsylvania more competitive in retaining and attracting businesses, and creating more family-sustaining jobs, while returning hard earned dollars to taxpayers’ pockets. 
 
The legislation includes: 
  • Rolling back the Personal Income Tax (PIT) to 2.935 percent from the current 3.07 percent rate.
  • Implementing Compete PA business tax relief, which includes removing the cap on net operating losses and shifting from a 70 percent to a 100 percent sales factor for calculating the Corporate Net Income (CNI) tax.
  • Reducing the consumer electric gross receipts tax by 50 percent, phasing in over five years. 
“Rolling back the PIT would benefit virtually every family in this Commonwealth,” said Rep. Tom Quigley (R-Montgomery). “This is not a stimulus proposal that would provide gain for only a select group, but this package would impact individual taxpayers and small businesses, which are the driving force of our economy. The result would be a broad-based jolt to the economy.”
 
Quigley has spearheaded the effort to reduce the PIT from its current rate of 3.07 percent.
 
“While the governor's plan would stimulate the state’s coffers, we are interested in stimulating Pennsylvania’s economy,” said Rep. Stan Saylor (R-York).  “Government cannot spend its way out of a recession.  Instead, government must lower taxes to spur economic growth.  The answer is not to have government collect more money from taxpayers and spend more on programs.  The answer is to stop government from collecting so much money in the first place.”
 
If enacted, these tax cuts would put an extra $500 million into Pennsylvania’s economy, benefiting middle-class families, small businesses and large employers. This legislation will put money back into the pockets of hard-working taxpayers where it belongs. 
 
Rep. Mike Turzai
28th District
Pennsylvania House of Representatives

(412) 369-2230
www.RepTurzai.com
Contact: Tricia Graham
House Republican Public Relations
(717) 260-6296
www.pahousegop.com