Pennsylvania Tax Credit for Teachers, Nurses, Police on the Move
Heartland Author
Then Pennsylvania Attorney General Josh Shapiro speaks with the press. As the nation continues to grapple with the latest mass shooting, which claimed the lives of 19 school children and two teachers in Uvalde, Texas, as well as the gun violence that devastates communities every day, Governor Tom Wolf joined CeaseFirePA, state and local officials, advocates and gun violence survivors at a rally in Philadelphia to urge elected officials to take meaningful action to end gun violence. MAY 27, 2022 - PHILADELPHIA, PA
(The Center Square) — The partisan divide over Gov. Josh Shapiro’s proposed budget extends to the fiscal implications of tax credits considered by the legislature.
In the House Finance Committee on Tuesday, those tensions emerged during a discussion of a bill that would create a three-year tax credit for nurses, teachers, and police officers.
The legislation, House Bill 1249, aims to address staffing shortages in health care, education, and public safety.
The bill advanced in committee by a party-line vote and will need to be considered three times by the House before heading to the upper chamber.
In a legislative memo, Monroe said one in four nursing jobs remained unfilled across the state, public schools can’t find teachers and municipalities need at least 1,200 police officers.
“When there are too few of these hardworking professionals, students struggle, hospitals scramble to provide safe nurse-to-patient ratios, and community safety is at risk,” he said.
Majority Chairman Steve Samuelson, D-Bethlehem, noted that the estimated fiscal impact of the tax credit would be $225 million until it sunsets at the end of 2027, including $25 million for the current fiscal year.
Republicans opposed the bill over concerns of the cumulative impact of the bill along with other proposals – including the expanded child care tax credit and creation of an earned income tax credit – that could push the state’s checking account deep into the red.
“Standing on its own normally I would be for this bill, but it isn’t standing on its own,” Rep. Jack Rader, R-Effort, said. “It’s standing with three or four other bills, just in this committee … that are going to impact our budget.”
Others cited a lack of similar action in other states.
“I am entirely pro-police, pro-educator, and pro-health care worker, but I view tax credits as being necessary only when it’s a competitive response,” Rep. Jonathan Fritz, R-Honesdale, said.
The fairness of the tax credit was also an issue.
“We want to talk about job creation in this commonwealth, we gotta talk about the right combination of taxes and regulatory reform and things like that,” Rep. Keith Greiner, R-Ephrata, said. “To be able to pick winners and losers like this, I think, is totally inappropriate.”
“It’s not gonna solve the issue, obviously, overnight but it certainly is acknowledging the shortages and they do think it’s going to help, and they are desperate for any help that we can offer,” Rep. Brian Munroe, D-Warminster, said during discussion.
Democrats argued that the tax credit could give Pennsylvania an edge to attract new residents.
“I would urge this committee, when evaluating ideas, things that are new or not necessarily being modeled in every state in the country, those are the kinds of things that might be just the thing that we need to attract people to come work in Pennsylvania,” Rep. Ben Waxman, D- Philadelphia, said.
