Tax Reform

“No more lives torn apart, and wars would never start, and time would heal all hearts.” You might recognize those words from the ubiquitous-around-the-holidays song, “Grown-Up Christmas List.” Grown up? Sure. Likely to happen? Not on this planet. Here is a Christmas wish list that can come true and would make Pennsylvania a place where everyone can thrive.

For the first time since 1985, Pennsylvania’s total population declined last year, falling by more than 7,600, according to new data from the Census Bureau.

When it comes to controlling spending, Pennsylvania ranks a disappointing 30th among states, according to the Economic Freedom of North America 2016 report, released by the Fraser Institute.

The 2016-17 General Fund budget added to Pennsylvania’s fiscal challenges. Lawmakers approved the $31.6 billion budget without implementing meaningful reforms or authorizing enough revenue to balance the budget. Despite lacking solid revenue sources, the legislature increased spending by $1.6 billion—a sum vastly exceeding the combined growth rate of inflation and population.

Today, the House Finance Committee voted 19-4 to repeal the 40-percent retroactive tax that is poised to drive hundreds of vape shops out of business and cost as many as 1,500 full-time jobs.

Imagine you find a way to help others live healthier lives, and this passion leads you to invest your savings to start a related small business. Now, imagine state government taking it all away from you with the stroke of a pen.

Pennsylvania’s tax structure should benefit all Pennsylvanians, not just some. Unfortunately, our state’s stifling tax burden harms residents. Each year, government spending grows, increasing the pressure for higher taxes. These taxes weigh heavily on the state’s economy and lead to slow job and income growth. Lower taxes are the key to a stronger economy.

In 2013, I opened my first business. I’d overcome many challenges and assumed some gut-wrenching risks to get there, but I did it—and I was proud. But less than three years later, my business—my dream—is on the brink of shutting down because state government is taxing it to death.

The 2016-17 budget remains unbalanced. Without serious efforts to reduce spending or reform major cost drivers, like public pensions and the sprawling human services system, taxpayers should expect a push for tax hikes in 2017.

Chris Hughes of Fat Cat Vapor Shop in Montoursville is preparing to close his doors for good after Gov. Wolf and lawmakers imposed a 40 percent, retroactive tax on his inventory, effective October 1. Now, one lawmaker is moving to save shop owners like Hughes from losing their livelihoods.