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| - State Rep. Tom Quigley (R-Montgomery) and the House Republican Policy Committee hosted a public hearing Wednesday on the Economic Stimulus Tax Cut Package, legislation which would reduce Pennsylvania’s Personal Income Tax (PIT). The event was held on the West Campus of Montgomery County Community College in Pottstown. “The budget surplus we are currently experiencing should mean money being returned to the wallets of the hard-working taxpayers who earned it,” said Quigley, a member of the House Finance Committee. “The Economic Stimulus Tax Cut Package works to that end, and keeps tax dollars from finding their way into a pet project.” “This legislation is exciting for our members because it addresses concerns we have about how to make Pennsylvania more business friendly,” said Tim Phelps, president, TriCounty Chamber of Commerce. “This bill puts dollars back into local economies through business reinvestment and employee buying power.” The package includes, House Bill 2270, which would cut the PIT (personal Income tax) to 2.935 percent from its current rate of 3.07 percent and reduce the gross receipts tax on consumer electric bills by 50 percent over a period of five years. The proposal would also enact relief for businesses by removing the cap on net operating loss carry-forward and shifting from a 70 percent sales factor to a 100 percent sales factor in computation of the Corporate Net Income Tax, resulting in about $500 million in tax cuts for Pennsylvania citizens. Andrew King, a certified public accountant with Main Line Financial, said taxes can be a powerful tool in convincing business owners and home owners to move here. “Pennsylvania’s tax rate is essentially a flat tax, which does nothing to incent an entrepreneur to locate and stay in a community,” King said. “It also does nothing to encourage home ownership by the average working class individual via a tax deduction for real estate taxes or home mortgage interest.” John Callahan, director of government affairs for the Pennsylvania Chamber of Business and Industry, testified that the state’s lack of favorable business climate is well documented. “States throughout the country compete with one another for economic development,” added Callahan. “Tax policy is always a key dynamic, and Pennsylvania has been recognized as uncompetitive for corporate taxation by various publications and entities.” Today’s hearing was the second held in southeastern Pennsylvania in the past week regarding business competitiveness. Attending today’s hearing were Reps. Adam Harris (R-Mifflin/Juniata/Snyder), Daryl Metcalfe (R-Butler), Jay Moyer (R-Montgomery) and Mike Vereb (R-Montgomery). Rep. Thomas Quigley 146th District Pennsylvania House of Representatives (717) 772-9963 (610) 326-9563 Contact: Scott Little slittle@pahousegop.com (717) 260-6137 Member Site: RepQuigley.com Caucus Site: PAHouseGOP.com
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