Nesbit Casts ‘No’ Vote on Billion-Dollar Tax Plan
Lawmaker says 16 percent income tax hike not acceptable
HARRISBURG – Rep. Tedd Nesbit (R-Mercer/Butler) said today that he is hopeful budget negotiations will head in a new direction after the governor’s billion-dollar tax plan was decisively voted down in the state House on Wednesday.
“Residents of Mercer and Butler counties have been steadfastly opposed to an increase in the state’s income tax, which is also paid by many of our small businesses,” Nesbit said. “Hiking this tax will take hundreds of dollars out of the paychecks of individuals and families across the state, and that’s unacceptable to me and to the countless people who work hard every day to provide for their families.”
The governor’s tax plan, which was voted down overwhelmingly, would include $3.5 billion in income tax increases over the next two years, and the highest severance tax on natural gas production in the country. However, 95 percent of the total tax package would be borne by the income tax increase, amounting to 16 percent.
In addition, the governor proposed a natural gas severance tax, to be levied at a rate of 3.5 percent in addition to another 4.7 cents per thousand cubic feet. With the price of natural gas around $1 per thousand cubic feet, this would calculate to an effective tax rate of 14.7 percent. The governor’s plan, though, would keep the state’s impact fee.
“This budget impasse has gone on far too long, but it has sadly taken this long to convince the governor that his broad-based tax increase has no widespread support in the General Assembly or the public at large,” Nesbit said. “I am looking forward to a new set of negotiations that will result in a fair, reasonable budget that is mindful to the people we represent.”
Representative Tedd Nesbit
8th Legislative District
Pennsylvania House of Representatives
Media Contact: Jennifer Keaton
(717) 705-2094
jkeaton@pahousegop.com
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