Burns: Wolf should abandon state income tax hike proposal

$7.3 billion in federal aid means no new state taxes needed

Northwest Delegation    March 11, 2021 | 11:58 AM

EBENSBURG, March 11 – With state government slated to receive $7.3 billion in federal COVID-19 relief funds, state Rep. Frank Burns is calling on Gov. Tom Wolf to abandon his plan for a big tax hike in this year’s budget.

Burns, D-Cambria, said the latest federal allocation is roughly three times the state’s $2.5 billion projected budget deficit, and since the fresh influx of money can be used to backfill pandemic-related revenue losses, Wolf’s proposed 46% hike in the state income tax can’t be justified.

“The governor should yank this bad idea from the negotiating table as quickly as a dentist would pull out a horribly infected tooth,” Burns said. “The only reason to lobby for more taxes at this point is to grow state government in perpetuity, which is why I’m also calling for a moratorium on creating new programs with this federal money.”

Burns, a champion of state government living within its means and of eliminating waste and fraud even in good economic times, said he’s fearful that some – if not many – in Harrisburg will see $7.3 billion in federal cash as seed money to start or expand pet projects and programs, resulting in higher taxes down the road.

“Instead, we should use this money judiciously, and treat it for what it is – a one-time allotment to alleviate short-term fiscal pain,” Burns said. “Our focus should be funding programs that are already in place, while still demanding accountability on how and where the money is spent.”

The American Rescue Plan, as the federal funding measure is called, has been passed by Congress and is expected to be signed into law by President Biden on Friday. With its implementation a foregone conclusion, Burns said there’s no reason for Wolf to cling to his desire to raise an extra $3 billion by implementing the biggest personal income tax hike in state history, from 3.07% to 4.49%.

“A third-grader could do the basic math: subtracting a budget deficit of $2.5 billion from $7.3 billion still leaves you with $4.8 billion,” Burns said. “An additional $3 billion from a higher income tax becomes play money at that point – and trust me, we don’t want to shower that on Harrisburg.”