{"id":2178806,"date":"2024-02-17T07:50:01","date_gmt":"2024-02-17T12:50:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/budget-hawk-fears-spending-plan-may-trigger-future-46-income-tax-hike\/"},"modified":"2024-02-17T07:50:27","modified_gmt":"2024-02-17T12:50:27","slug":"budget-hawk-fears-spending-plan-may-trigger-future-46-income-tax-hike","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/budget-hawk-fears-spending-plan-may-trigger-future-46-income-tax-hike\/","title":{"rendered":"Budget hawk concerned about spending plan&#8217;s potential to cause a 46% income tax increase in the future"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbudget-hawk-fears-spending-plan-may-trigger-future-46-income-tax-hike%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2178806&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Lawmaker Accuses Pennsylvania \u200cGovernor of Dishonest\u2064 Budget Math<\/h2>\n<h3>Shapiro&#8217;s Budget Plan Draws Criticism<\/h3>\n<p>After Pennsylvania Gov. Josh Shapiro \u2064unveiled his $48.3 billion spending plan earlier this \u2063month, \u200cone\u200c key budget\u200b negotiator says \u2064the \u200dmath used to balance \u200bthe plan is dishonest and may \u200brequire \u200dan income tax raise by 2028.<\/p>\n<blockquote>\n<p>It\u2019s not unusual for lawmakers across the aisle to scrutinize the way a\u2063 sitting administration \u2064justifies extra spending \u2013\u2062 in this case 8.4%\u200c more\u2062 \u2013 but for House Appropriations Committee\u200b Minority Chairman Seth Grove, \u2063R-York, Shapiro\u2019s conflation of surplus funds and emergency savings conceals the unrealistic accounting tactics \u2064used to back up his \u201cbalanced budget\u201d claims.<\/p>\n<\/blockquote>\n<p>The budget\u200b surplus refers to money left over in the state\u2019s checking account \u2062each\u2064 year, which can \u2063change\u200d based on\u200b tax revenues,\u200d investment income, and\u2063 some delayed bill\u2062 payments. The \u201cRainy Day Fund\u201d is a pot of money\u2062 reserved to keep the government \u200coperational during severe\u2064 economic \u200dconditions.<\/p>\n<p>Grove said Shapiro\u2019s plan dips \u2062into the $8 billion surplus and\u2064 the $6 billion emergency fund this\u200d year,\u200b leaving \u2064roughly $3.4 billion in each account. His office\u2019s projections show both will evaporate over the\u200c next four years.<\/p>\n<blockquote>\n<p>\u201cIf we are\u2063 not in an economic downfall where we have to use that money, we \u2062are in big trouble,\u201d \u2062Grove told\u2063 reporters during a media \u2062briefing Wednesday. \u201cWe haven\u2019t hit that economic downfall\u200d that we saw in the Great Recession and \u2063some other times in our past history.\u201d<\/p>\n<\/blockquote>\n<p>During his budget address on Feb. 6, Shapiro said \u200dthe state \u201ccan\u2019t afford not to invest right now\u201d some of that $14 billion given the \u201creal challenges with education and\u200d the workforce that will\u200c hold us back if we don\u2019t take action.\u201d<\/p>\n<blockquote>\n<p>\u201cI do not want to take \u2064any more from the people of Pennsylvania than \u2064we need to. Instead, I want to invest in them,\u201d he said. \u201cIt\u2019s time to solve these \u200bpressing problems, to meet this moment responsibly and \u200cwith bipartisan \u200ccompromise.\u201d<\/p>\n<\/blockquote>\n<p>The administration\u2019s\u200b longstanding economic position has been that upfront investment in education and \u2063workforce development will widen the state\u2019s tax base, and recurring\u200b income, \u200dby encouraging more people to settle in the \u2063commonwealth.<\/p>\n<p>Grove noted, however, that if the state\u2019s checking\u200b account only grows 2%\u2063 each year,\u200c as Shapiro\u2019s accounting \u200dbook sees \u2063it, there\u2019s not many other ways to fill a multi-billion-dollar deficit without raising\u2064 more revenue \u2013 specifically,\u2063 a 46% increase in the personal income\u200c tax rate.<\/p>\n<blockquote>\n<p>Grove said Democrats historically prefer income \u2063tax\u2063 hikes to raises in\u2064 the sales tax as a less regressive form of revenue generation. Besides, he added, \u2062the \u200cstate\u2019s\u2063 expansion of tax\u2064 policies over\u200d the\u2063 last \u2064decade may be at its limits.<\/p>\n<\/blockquote>\n<p>\u201cBecause we have debated a multitude \u2064of taxes under \u2064Governor Wolf\u2019s eight years, right, I think we\u2019ve\u2064 covered most\u2062 of them,\u201d Grove said. \u201cIf someone finds a new tax he didn\u2019t propose in \u2062his eight years I will be shocked \u2013 you probably get an award\u200d for finding new \u2063tax revenue.\u201d<\/p>\n<p>Of note, Shapiro\u2019s budget does offer support for taxing\u200c and regulating skill games \u2062and\u200d adult-use marijuana, generating a few hundred million dollars.<\/p>\n<p>Grove said \u2063those sources \u201cdon\u2019t even\u200b come close\u201d to \u2064fixing\u200d the problem. Though\u200d he theorizes, it\u2019s one Shapiro isn\u2019t \u2063worried about \u2062fixing, given his rumored presidential campaign ambitions.<\/p>\n<blockquote>\n<p>\u201cIf \u2063I\u2019m\u200b Austin\u2062 Davis, I\u2019m not sure \u2063I\u2019m running for\u2064 lieutenant \u200dgovernor if Shapiro\u2019s running for the\u2062 White House\u2063 and I\u2019ve\u200b got a $10 billion hole \u200cto fill,\u201d he said.<\/p>\n<\/blockquote>\n<p> <\/p>\n<h2> \u200d How do Shapiro and his supporters\u200d defend\u200c the use of surplus and\u2063 emergency funds in \u2064the budget and what\u2063 long-term \u2062benefits do they believe \u2063will be yielded<\/h2>\n<p><span>  K in the long term.\u201d He proposed\u200c using $3 billion\u2063 from\u200d the surplus and\u2062 $1 billion from the emergency fund for\u2064 various initiatives, including education and job\u2063 training programs.<\/p>\n<p>However, Grove argues\u200b that using these\u2063 funds for recurring expenses is an unsustainable practice that will lead to a tax increase down \u200dthe line. He believes \u2064that the surplus \u200cand emergency fund should be used\u2064 strictly for\u2062 their intended \u200cpurposes \u2013 to address unexpected expenses and economic downturns.<\/p>\n<p>Grove\u2064 also raised concerns about\u200b the overall size of Shapiro\u2019s budget and the increase \u2062in spending. He emphasized the importance of fiscal responsibility and warned against excessive government spending.<\/p>\n<p>\u201cWe\u2063 need to prioritize\u2064 essential services and make sure our tax dollars are being used \u2064wisely,\u201d Grove said. \u201cI believe there are areas \u200cwhere we can cut back and \u2063find\u200b efficiencies without compromising our core responsibilities.\u201d<\/p>\n<p>Grove\u2019s skepticism is shared by\u200d some of his Republican colleagues in the legislature, who\u200c argue that it is not the right \u2063time to increase spending given\u200c the uncertain economic climate. They \u200cbelieve that it would be \u2063more prudent\u200d to\u2063 focus on reducing the state\u2019s debt\u200c and building up the rainy day fund.<\/p>\n<p>On the other hand, Shapiro and his supporters defend his budget plan,\u2064 arguing that it addresses critical needs \u200dand invests in \u2064the\u200c state\u2019s future. They\u2062 believe that the \u200bsurplus and \u200cemergency fund\u200b are appropriate sources of funding for these investments and that they will yield long-term benefits for\u200d Pennsylvania.<\/p>\n<p>The disagreement over Shapiro\u2019s budget plan underscores the ongoing debate regarding government spending and fiscal policies. It \u200bpits those who prioritize immediate investments and addressing societal challenges\u200c against those who prioritize fiscal restraint and long-term stability.<\/p>\n<p>As \u2064the budget\u200d negotiations\u2062 continue, it remains\u2062 to be seen how lawmakers will reconcile these opposing viewpoints. \u2062The\u2064 outcome \u2063of these discussions will have significant implications for Pennsylvania\u2019s financial\u200b future and \u200bthe well-being of its residents.<\/p>\n<p>In the meantime, \u200blawmakers and experts continue to analyze the numbers and evaluate the feasibility and sustainability of Shapiro\u2019s budget \u200dplan. They will \u2062assess the potential consequences \u200dof using surplus and emergency funds \u2064for recurring expenses\u200c and consider alternative \u200capproaches to address the state\u2019s \u200dneeds.<\/p>\n<p>Ultimately, the success of Pennsylvania\u2019s budget \u2062will depend on finding a balance between immediate investments and long-term fiscal responsibility. It will require lawmakers to make difficult \u200ddecisions and prioritize the \u2062best \u200cinterests of their\u200d constituents and the \u200bstate as a whole.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pennsylvania Gov. Josh Shapiro&#8217;s $48.3 billion spending plan has been criticized by a budget negotiator for its dishonest math, potentially leading to an income tax increase by 2028. Lawmakers from both sides often scrutinize the strategies of a sitting governor<\/p>\n","protected":false},"author":1,"featured_media":2178807,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/02\/AP24046792679593-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2178806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/02\/AP24046792679593-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2178806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2178806"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2178806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2178807"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2178806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2178806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2178806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}