National Federation of Independent Business • 225 State Street, Suite B • Harrisburg, PA 17101 • 717/232-8582 • Fax: 717/232-4098
FOR IMMEDIATE RELEASE
CONTACT: Suzanne Stoltenberg 717-232-8582 x1 [email protected]
Lawmakers to Gov. Wolf on Tax Increase: What Part of No Don’t You Understand
Increase would have hampered hiring and small-business growth
HARRISBURG, (October 7, 2015) – The National Federation of Independent Business (NFIB), which represents 14,000 small businesses in Pennsylvania, applaud lawmakers for voting down Gov. Tom Wolf’s proposed increase in the Personal Income Tax (PIT) by a vote of 127 to 73. The 16-percent PIT increase would have dramatically raised the tax bill for small-business owners and reduced working capital that companies use to maintain or expand their operations and hire new employees.
"We are grateful that our lawmakers listened to Pennsylvania’s small-business owners and realized that an increase in the Personal Income Tax would have been devastating for them," said Kevin Shivers, executive state director of NFIB/PA. "These entrepreneurs create 65-percent of all new jobs. Governor Wolf’s plan would have reduced hiring and slowed Pennsylvania’s economic growth."
Shivers noted this was the second time lawmakers overwhelmingly rejected the Governor’s tax increase requests.
Currently, 80-percent of all businesses in Pennsylvania pay their business taxes through the PIT and not through the Corporate Tax. Every s-corporation, partnership, limited liability corporation and sole proprietor would have been hit by Gov. Wolf’s proposed PIT increase.
"Pennsylvania’s unemployment rate has increased since December 2014 and many are questioning whether we are heading toward another recession. The Tax Foundation ranks Pennsylvania’s tax burden as tenth highest in the nation. This would have been the worst time to further tax small businesses," said Shivers.
Shivers noted today the announcement today that the Pennsylvania Public School Employee Retirement System (PSERS) which assumes a 7.5-return on investment earned less than half that amount in 2015. "Enough tax talk. It’s time for our Governor and his allies to fix the state pension crisis once and for all!"
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NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists sends heir views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.