PHILADELPHIA (KYW Newsradio) — As budget season grinds on in Harrisburg, a series of bills that would offer tax credits to find workers for hard-to-fill jobs and help lower-income families took a critical step in the state House on Tuesday.
The bills would lower taxes on cellphones; provide a tax credit to new nurses, teachers and police officers; increase tax credits for child care; and expand eligibility for an earned income tax credit.
The legislation cleared the House Finance Committee largely on party lines.
Republicans, like northeastern Pennsylvania state Rep. Jack Rader, question the price tag.
“When we think about these bills individually, I’ll probably be for all these bills,” he said. “But collectively, we’re probably talking close to $1 billion worth of revenue loss for the state. I don’t know how we can legitimately do that.”
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Philadelphia-based Democratic state Rep. Malcolm Kenyatta said there’s a double standard when it comes to tax cuts for workers compared to tax cuts for corporations.
“When it’s time to cut taxes for big institutions that have a bunch of lobbyists running around this building, we never hear the same concern that we’re hearing highlighted today about where we’re going to get the money,” he argued.
Democrats noted the current budget plan does set aside more than $1 billion for the state’s rainy day fund. Republicans expressed concerns over legislation that would commit Pennsylvania to spending in future years when the financial picture is unclear.
“We can help individuals, individual groups, individual people right now, but we could hurt Pennsylvanians as a whole in the future — everyone. And how do we dig ourselves out of that?” Rader asked.
House Democrats passed a nearly $46 billion spending plan on party lines — nearly $1.5 billion more than Gov. Josh Shapiro’s original proposal, with no tax increases. However, the process is just getting started. The Senate will have a say before the two chambers agree to a plan that the governor will sign.
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