The Senate Finance Committee is responsible for reviewing any legislation that affects Pennsylvania’s tax codes. As Chairman of this committee, I believe it is important to work toward improving the bottom line for taxpayers and small businesses while allowing our communities to grow stronger and more vibrant through good public policy.
Small businesses are the keystone of our state and local economy, supplying nearly half of all jobs in the commonwealth. Last month, the Senate Finance Committee approved legislation that will help more small businesses and start-ups succeed despite difficult economic conditions. Senate Bill 562 would allow a gain or loss in one class of income to be offset against income in another class. Senate Bill 1354 would allow the carry forward of losses within a class of income. These measures would encourage investment in small businesses and help these companies survive and proposer in the vital early stages of development. Existing businesses could also benefit from these provisions to complete expansion projects that have the potential to create more jobs for community residents. Senate Bill 562 and Senate Bill 1354 are excellent examples of how tax policy can reflect broad-based, pro-growth principles that can benefit all taxpayers.
Throughout my Chairmanship of the Senate Finance Committee, I have sought out tax policies to promote fair treatment of community residents. For example, the committee recently approved three bills that affect a small number of taxpayers, but create a dramatic positive impact on the fabric of our communities.
Senate Bill 382 would ensure that all active duty military pay remains exempt from the local Earned Income Tax. Under current law, most active duty military pay is exempt from local taxes. However, there is some concern that the pay of members of the Pennsylvania National Guard could be subject to local taxes due to changes in the definition of earned income that was included in tax reform legislation passed in 2008. These brave individuals are called upon to make tremendous sacrifices to keep us safe, and it is important that we honor their sacrifice by ensuring their pay is not subject to new taxes.
Senate Bill 746 would exempt transfers of farms from the realty transfer tax if the transfer is made between family members. The agricultural community has been a staple of our local economy and our heritage for hundreds of years, and this measure could help preserve this rich tradition for future generations. The committee also approved Senate Bill 1201, legislation that would eliminate the inheritance tax for disabled children who receive a parent’s property. The proposal would ensure disabled children can remain in the most cost-effective and compassionate environment possible.
 I look forward to exploring new ways that the committee can promote business growth, job creation and responsible public policy with a positive impact on the community by reforming the state’s tax policy. As the Senate Finance Committee tackles new challenges in 2012, we must be mindful of how new and existing tax policies affect not only the state as a whole, but also the individuals, families and businesses that help our communities thrive and grow.
For more information on issues of importance to Lancaster and Chester County residents,
please visit my website at www.senatorbrubaker.com. |
