This news release was provided by Gov. Tom Wolf’s office and reflects his wording and interpretation of Pennsylvania’s proposed budget.
HARRISBURG, PA – Gov. Tom Wolf outlined his budget plan Wednesday to remove barriers and cut taxes for working class families in Pennsylvania while investing billions of dollars into Pennsylvania schools and workforce development initiatives. The governor’s plan would make Pennsylvania’s tax structure more fair and equitable, cutting taxes for working class families while still making investments in public education through the fair funding formula.
“We will defeat COVID, but we can’t yet say when it will be safe for life to return to normal – and it’s hard to know what ‘normal’ will even look like. But I refuse to tell any young family in Pennsylvania that they just happen to be starting out at the wrong time – that, with everything going on, 2021 just isn’t going to be the year we get around to lifting the barriers that stand between them and the future they hope to provide for their children,” Gov. Wolf said. “I think it’s more important than ever that we act boldly and courageously to remove those barriers once and for all. So, today, I’m proposing a budget designed to do exactly that.”
The governor, who delivered his annual budget address via video on Wednesday, is asking Pennsylvanians to join him in urging the General Assembly to focus on these priorities as the 2021-22 state budget negotiations begin.
“We can have a great public school for every child in every neighborhood in Pennsylvania, good job opportunities for everyone who wants them, and an economy strong enough to provide for everyone. It is possible to pursue a legislative agenda for this commonwealth that is good for families, good for businesses, and good for the economy,” Gov. Wolf said. “Most of all, I think your family’s future is important enough that we ought to just have this argument right now instead of putting it off until next year, and the year after that, and the year after that. Let’s make Pennsylvania an even better place to live, work, and dream big dreams for your kids.”
Pennsylvania’s tax system is one of the most unfair and regressive in the country, and it hurts working people. Working class and low-income families pay exactly the same rate as the most well-off in our commonwealth. The COVID-19 pandemic has only exposed the inherent unfairness and inequity in our system with the most vulnerable Pennsylvanians bearing the brunt of the pandemic while many of the wealthiest became even more prosperous. It’s time to put working class and low-income families first and make our system more fair for those who need help most. Under the governor’s proposal, not only will the commonwealth invest billions of dollars in education through the fair funding formula, Pennsylvania working class families will also receive a historic tax cut.
Under the governor’s proposal, the special tax forgiveness credit will be expanded, and working class families will have their taxes reduced or eliminated completely. Overall, 67 percent of Pennsylvanians will either get a tax cut or see their taxes stay the same. The proposal increases the allowances for tax forgiveness to $15,000 for single filers, $30,000 for married filers, and $10,000 allowance for each dependent. Filers with incomes at or below these thresholds will receive 100 percent tax forgiveness. The percentage of tax forgiveness declines by 1 percentage point for each $500 above the threshold for 100 percent forgiveness. For example, this means that families with two children making less than $84,000 will receive a tax cut while a family of four making $50,000 will have their taxes eliminated.
