Meehan rebuffs Wolf’s plea to oppose federal tax overhaul
Gov. Tom Wolf sent a letter to U.S. Rep. Patrick Meehan, R-7 of Chadds Ford, telling him to oppose federal tax overhaul legislation being considered due to its “misplaced priorities.” Meehan and his staff rejected his plea, claiming families in his district stand to gain an average $5,100 tax cut through the measure.
The governor wrote a letter to both Meehan and U.S. Rep. George Joseph “Mike” Kelly Jr., R-3 of Butler, as both are members of the U.S. House Ways and Means Committee debating the nearly $6 trillion proposal.
The plan was approved on a party-line vote Thursday afternoon.
Wolf said almost half of the tax cuts would benefit the top 1 percent of households while deductions being considered would impact thousands of Pennsylvanians based on the Joint Committee on Taxation findings.
John Elizandro, a Meehan spokesman, said Wolf was relying on inaccurate talking points and that the $5,100 average tax cut is in order under the proposal.
In his letter, Wolf said, “I write to you to share my concerns over this bill’s misplaced priorities.
“Instead of prioritizing the middle class, the bill drafted by House Republicans behind closed doors and without a single hearing or chance for public input, caters to the wealthy and large corporations,” he continued. “Small businesses and working-class homeowners are largely forgotten.”
The governor said deductions in the plan effect mostly middle class families.
The medical expense deduction, Wolf said, would hurt more than 300,000 Pennsylvanians, mostly seniors with high medical expenses and families adopting a child would no longer have the adoption tax credit available to them.
The governor added that the student loan deduction is used by more than 650,000 Pennsylvanians.
“Eliminating this deduction will make it costlier and add an additional barrier to higher education for current and future students,” he said.
And, Wolf said, “Eliminating the educator expense deduction means 150,000 of the commonwealth’s teachers will not be able to deduct classroom supplies they purchase out of their own pocket.”
He concluded, “This bill is not what middle class Pennsylvanians need. I do not believe your constituents elected you to represent the interests of the wealthiest 1 percent at the expense of hard-working Pennsylvania families.”
Elizandro said the governor had the wrong perspective.
“After Gov. Wolf proposed the largest state tax increase in Pennsylvania history, it’s no surprise to see him trot out the same tired talking points used by Washington Democrats hoping to derail tax relief,” he said. “They’re the same talking points given ‘Four Pinnochios’ and called ‘false’ by the Washington Post last week.”
He explained that the move on deductions is beneficial.
“By limiting deductions used by some, the bill lowers rates on all,” Elizandro said. “That’s a good deal for Pennsylvania families. The average middle-income family of four in Congressman Meehan’s district will get a tax cut of more than $5,100. That’s more money for these families to make a mortgage payment or put their kids through school.”
In addition, he said the changes result in more jobs.
“Independent analysts estimate that the legislation will create nearly 40,000 Pennsylvania jobs by lowering taxes on small businesses to help them grow and hire,” Elizandro said.
Pennsylvania’s two U.S. senators split along partisan lines on the proposal.
“After my initial review of the ‘plan’ and what has been reported publicly, I can tell you that each version of the congressional Republican tax scheme gets worse for Pennsylvania and our families,” U.S. Sen. Bob Casey, D-Pa., said. “By going further than the House of Representatives and fully ending the deductions for state and local taxes, the latest version, released by Senate Republicans, is a direct attack on over 1.5 million Pennsylvania households who claim this deduction, meanwhile it contains massive tax giveaways to the wealthiest and biggest corporations.”
U.S. Pat Toomey, R-Pa., said the Senate’s proposal makes him hopeful.
“Big day today, I am very excited about the product we have,” he said. “This tax reform package is going to directly lower the tax bill, and therefore, be a pay raise for the overwhelming, vast majority of Pennsylvanians who are getting up every day and going to work and supporting their families. And that’s very good news.”
Toomey explained what’s next for the proposal.
“I am really, really excited about this,” he said. “I am optimistic. The presentation to my colleagues today went very well, the package was very well received, and so next week the plan is to mark this up in the Senate Finance Committee and continue to move it through the process with the goal of getting it signed into law hopefully by the end of this year. I think that is achievable and I will be working very hard in an effort to make that happen.”