Pennsylvania property owners need better friends in Harrisburg.
On Tuesday, the state House of Representatives passed a bill with the kind of overwhelming majority that is usually only seen for naming bridges after fallen soldiers. A legislative body that tends to vote along party lines on almost everything threw those allegiances away with a 198-5 tally.
What gains that kind of consensus? Corporate tax cuts.
But not everything that passes in Harrisburg becomes law. Gov. Tom Wolf has gotten very good at exercising his veto pen. That is unlikely to happen this time. If the bill passes the Senate — which seems likely given the issue has bipartisan support in that chamber, too — the governor has indicated he is optimistic about a final deal.
The proposed change would reduce corporate income tax from 10% to 9% — and, if the state can afford it, down to 8%.
There is a reason this is enjoying such popularity that extends beyond lobbyists. The idea of cutting business taxes has long been a governmental carrot to lure companies. It is used strategically in business parks and other places designated for development or to encourage new business, such as Keystone Opportunity Zones or Keystone Innovation Zones. It was a major tent pole of the federal tax cuts in 2017.
There is logic to it. We need businesses to provide jobs, to buy services from other businesses creating other jobs, etc. Pennsylvania is losing a seat in Congress because the 2020 census showed its growth is sluggish compared to states with booming industries. Counties like Westmoreland are strategizing ways to attract both corporate and individual residents. Lower tax rates make the state attractive for relocation.
So the issue is not that the tax cut is necessarily a bad idea.
It’s that everyone is jumping on board to help when the issue is corporations. However, Pennsylvania homeowners have been begging for decades for solutions when it comes to property taxes and school funding. Where is the unanimity in solving that problem?
It was supposed to be fixed by the legalization of gambling. It hasn’t been. Almost 20 years after those promises, the state’s aging population is still waiting for that help.
Legislators and leaders need to lock themselves down and find answers because that, more than corporate tax cuts, is the way forward. It helps the people. It makes home ownership more attractive, which stimulates the economy, including construction. It would fund education.
And let’s not forget — businesses own a lot of Pennsylvania real estate.
— Pittsburgh Tribune-Review via AP
