Sen. Mensch calls for cut in PA income tax

State Sen. Bob Mensch, R-24th Dist., is pushing legislation he has introduced to reduce Pennsylvania's personal income tax as a way to spur the state's struggling economy and put more Pennsylvanians back to work.

From a Mensch press release:

"Pennsylvania families and businesses have been hard hit by the current economic downturn," said Mensch. "By putting more money back into the hands of consumers, we can help promote additional economic growth and provide a needed boost to businesses. Similarly, reducing the tax burden on businesses will provide some breathing room for companies that are struggling to survive."

Mensch noted that roughly 70 percent of Pennsylvanians are employed by small businesses. He said a tax break will enable business owners to invest in their business and create new job opportunities

Legislation introduced by Mensch, S.B. 1361 will decrease the personal income tax -- paid by both individuals and businesses -- from 3.07 percent to 2.99 percent.

Mensch said that last year, he and other Republicans in the legislature stood up to Governor Ed Rendell's demand to increase the personal income tax by 16 percent to fund new spending proposals. That proposed increase was on top of the personal income tax hike Rendell sought and won approval for in 2003 that raised the personal income tax from 2.8 percent to the current rate of 3.07 percent. The Commonwealth Foundation conducted analysis of that tax hike and said it resulted in a 36,000 decrease in jobs created in the years immediately following the increase.

"At a time when Pennsylvania families are struggling to make end meet and make tough household budget decisions, state government should be doing the same," said Mensch. "We need to take a hard look at opportunities to cut waste, fraud and ineffective government programs so that we can allow working families and businesses to keep more of their hard-earned dollars and reinvest in the state's economy."

Mensch is running on a platform of returning fiscal responsibility to Harrisburg, opposing tax increases on working families and seniors, improving the state's economic environment and job creation, and enhancing local open space preservation efforts.

For more information, visit Mensch's campaign website at www.mensch2010.com