A tax reform proposal by the Trump administration and congressional Republicans comes with mixed reviews, with one official saying the move is long overdue and another pointing out that the plan should worry Pennsylvanians.
U.S. Sen. Pat Toomey, R-Pa., said he sees the tax reform as an amazing opportunity and responsibility.
“There’s nothing normal about 2 percent growth for the United States of America. We’re capable of so much more,” he said. “When we get this right, I am confident that we will achieve robust growth. What that means for the hardworking families that I represent all across Pennsylvania is a direct pay raise when we lower their direct tax burden.”
Toomey said the proposed plan also means “an indirect pay raise” as more jobs are created and more businesses are launched. Upward pressure on wages allows people to have a higher standard of living, he said.
But U.S. Sen. Bob Casey, D-Pa., said the top priority of Congress should be rebuilding the middle class and providing equal opportunities for workers.
“The document released by the administration and congressional Republicans contains massive tax cuts for the super-rich, big corporations and Washington special interests, which won’t create jobs or grow incomes for middle class families,” he said. “In order to finance tax cuts for the super-rich and big corporations, this proposal from Republicans in Washington would add $1.5 trillion to our deficit, which could lead to cuts to Social Security, Medicare and Medicaid.”
People in Pennsylvania spend almost one-third of the year paying state, local and federal taxes, Bob Dick, Commonwealth Foundation senior policy analyst, said. What’s more, the state has the highest gas tax and the second highest corporate tax rate in the U.S., he pointed out.
“Congress must work to put the needs of Pennsylvanians — and all Americans — ahead of the special interests who depend on tax revenue to survive,” Dick said. “We are hopeful that Congress and the president can move forward on a plan that simplifies the tax code and reduces the federal tax bills of all Pennsylvanians.”
Marc Stier, director of the PA Budget and Policy Center, expressed concerns about the proposed reform, which he says adds $1.5 trillion to the deficit over the next decade.
“This is remarkably hypocritical, given that Republicans blamed President Obama for deficits even as they declined year after year after the end of the Great Recession,” he said. “And it is economically risky at a time when the economy is growing. Republicans claim that tax cuts will generate much faster economic growth.”
Secondly, the reform could mean cuts federal spending –– such as health care and human services –– to balance the deficits. He said this is not the proper route to take.
“Third, it appears that the tax proposal largely benefits the wealthiest Americans at the expense of working people and the middle class,” he said.
