#PABudget: Subtraction’s Merciless Revenge on Republican Tax Cut Theories

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Who could’ve predicted?

State Sen. Jake Corman and state Rep. William Adolph, the Republican chairmen of the state House and Senate appropriations committees, said Thursday that Pennsylvania’s May revenue numbers will be as much as $100 million below expectations.

That harrowing news comes after revenue from April — one of the biggest collection months of the year — were short by $328.3 million. Adjusting for an early $80 million transfer from the state liquor store profits, a $100 million revenue shortfall in May would leave the state more than $600 million below expectations for the year.

The Independent Fiscal Office estimated earlier this month that 2013-14 revenue could end up $608 million below estimates. The hole could still deepen in June.

Give away $1.2 billion as tax cuts, have $1.2 billion less in revenue. It’s not hard.

(via Andrew Staub)

This entry was posted in Budget, Issues.

2 Responses to #PABudget: Subtraction’s Merciless Revenge on Republican Tax Cut Theories

  1. There needs to be more attempts to educate the public about tax cut rhetoric. It’s very simple. “Tax cuts” do not benefit ordinary people in any meaningful way. Tax cuts, particularly at the state and local level, might net a person a couple of hundred dollars a year. That’s one or two months of your cable bill, depending on how many extra movie or sports packages you subscribe to. And it doesn’t end up in your hand all at once — it’s distributed across 26 paychecks. So the likelihood that an average middle-class citizen would even notice it is next to nil, unless they’re obsessive about balancing their checkbooks, which in this age of online banking is becoming very rare. Even a $1000 annual tax cut only shows up as $44 in your biweekly paycheck.

    But tax cuts of those same amount to wealthy people and corporations show up as tens of thousands of dollars. Especially corporations. Those tax cuts go to the bottom line, which increases the annual profit, which means corporate officers get bigger bonuses. Does anybody really think increasing corporate profits leads to more jobs for ordinary people?

  2. Pingback: #ByeByeTom: Corbett’s Fiscal Arsonry Threatens State Parks and Forests for Little Return | Raging Chicken Press