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Americans For Prosperity Rep: Changing The Way The State Taxes People Will Have Negative Effects On The Economy

PHILADELPHIA (CBS) - Chris Stigall spoke with Beth Anne Mumford from Americans for Prosperity on Talk Radio 1210 WPHT about the group's opposition to Governor Tom Wolf's plan to raise Pennsylvania's income tax.

Mumford said the government does not need more money to solve its problems.

"Governor Wolf, during the campaign, suggested that one way to solve Pennsylvania's budget woes is to raise taxes. We think that's a terribly bad idea. I think for most folks, they've spent years cutting their own personal budgets. It seems like you get to the end of the week and there's not a whole lot of money left over. The lawmakers in Harrisburg ought to deal with the budget issues in Harrisburg without demanding more dollars from workers and small business owners across the state."

She stated American's for Prosperity also oppose Wolf changing the calculations for the way the Commonwealth's residents are taxed.

"Pennsylvania is one of seven states that has a flat personal income tax, meaning that everybody pays the same the rate. I think that most people find that to be somewhat fair. Now, Governor Wolf did argue on the campaign trail that we don't have a fair system, that some people should pay more than others. I think, and AFP thinks, that's fundamentally unfair. We start changing the way we tax some people so we can give money to other people or to other programs, then really it never ends. Pennsylvania raises $11 billion a year to the general fund because of the personal income tax, so it is certainly collecting an awful lot of money. We would argue they're not doing a very good job of spending it."

Mumford believes the Governor's proposed changes will have far reaching negative ramifications.

"A lot of small businesses actually pay their taxes through their personal income tax filing, so an increase in the PIT is going to impact small businesses as well. If you're a mom who is running an online eBay business or you're a small business that's hiring people in the local community, all of those folks are going to be impacted. That's less money to pay salaries, to provide jobs, to reinvest in the business that you're running or expanding that business, providing greater service. The tax increase doesn't just impact individuals, it impacts all of us, because it impacts whether or not our economy is thriving."

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