Pennsylvania Gov. Tom Wolf (D), amidst his push for a larger state budget, is welcoming reports of high revenue intake, but Republicans are urging caution in response to the new economic downturn.
Data from the Pennsylvania Department of Revenue indicate the commonwealth’s General Fund took in $6.5 billion in April, an amount exceeding the department’s prediction by 38.7 percent. It is the largest sum of taxpayer dollars that the state has collected in one month. In Fiscal Year 2021-22 so far, the General Fund has received $40.7 billion, or 12.4 percent more than forecasted.
Pennsylvania Republican lawmakers voiced optimism last week that the commonwealth’s onerous Corporate Net Income Tax (CNIT) might finally soon get reduced, given a recent overwhelming state House vote to do so.
At 9.99 percent, the Keystone State’s CNIT is the second highest in the U.S. A bill by Rep. Joshua Kail (R-Monaca) would reduce the rate to 8.99 percent. His legislation passed the House of Representatives 195-8.
Pennsylvania’s House Appropriations Committee ended hearings on next fiscal year’s budget on Thursday, with the governor’s budget chief defending a plan that many lawmakers fear significantly overspends.
Governor Tom Wolf (D) has asked the Republican-controlled General Assembly to consider a Fiscal Year 2022-23 budget that spends $43.7 billion, an increase of 16.6 percent over current expenditures. His proposal assumes the state will enjoy a revenue intake that surpasses that predicted by the nonpartisan Independent Fiscal Office (IFO) by $762 million.
On Tuesday, at the first Pennsylvania Senate hearing on next fiscal year’s budget, lawmakers considered the state’s slow economic recovery—and the state’s failure to attract new residents.
Independent Fiscal Office (IFO) Director Matthew Knittel testified before the Senate Appropriations Committee regarding the state’s fiscal, economic and demographic outlook. Particularly in that last category, the Keystone State doesn’t boast an envious position.