Pennsylvania Governor Josh Shapiro speaks at a campaign rally for Vice President Kamala Harris on July 29, 2024 in Ambler, Pennsylvania.
Hannah Beyer | Getty Images
Pennsylvania Gov. Josh Shapiro defended his support for “aggressive” corporate tax cuts, a move that may anger some Democrats. He gained support from the state’s business community.
“We needed to create a more favorable tax environment for businesses. This was one element of a comprehensive strategy to grow jobs and create more economic opportunity in Pennsylvania,” Shapiro told reporters at an event in Philadelphia with Treasury Secretary Janet Yellen.
“I’m fiercely competitive with other states,” he said, “which is why I’ve been so aggressive in lowering corporate taxes.”
Shapiro and Yellen announced that Pennsylvania, a key election battleground, will be the next state to raise funds. Inland Revenue ServiceNew free tax filing system.
But with Vice President Kamala Harris expected to select her running mate within the next 10 days, the event provided another opportunity for Shapiro to showcase his record of moderate economic policy.
Shapiro is on the shortlist of candidates to be Harris’ running mate, along with Minnesota Governor Tim Walz, Arizona Senator Mark Kelly, Illinois Governor J.B. Pritzker, Kentucky Governor Andy Beshear and Transportation Secretary Pete Buttigieg. Roy Cooper He voluntarily withdrew from the race on Monday night.
The popular Pennsylvania governor could help Harris win a key battleground state, and her articulate speech and connections to big donors will be an asset to her campaign with Election Day less than 100 days away.
Voters are evaluating Shapiro’s policy positions as he goes through the closed-door vice presidential selection process.
The economic platform Trump laid out on Tuesday mirrored that of the Biden-Harris administration, aiming to strike a balance between pro-worker and pro-consumer policies while remaining friendly to businesses.
CNBC reported Monday that Shapiro is scheduled to attend a lunch with major Democratic donors in the Hamptons on Sunday.
Like Shapiro, Yellen also answered several questions about the Harris administration’s economic priorities.
On tax cuts, Yellen said she expects Harris to be largely in line with President Joe Biden’s pledge to avoid raising taxes on middle-income earners, and that she would likely support child care issues such as paid leave and expanding the child tax credit.
“I won’t go into any more detail about what her priorities will be, but these are certainly things that she has been focused on and worked on over the last three and a half years,” Yellen added.
U.S. Treasury Secretary Janet Yellen speaks at the Financial Stability Oversight Council’s conference on artificial intelligence and financial stability at the U.S. Treasury Department in Washington, DC on June 6, 2024. During her speech, Yellen spoke about the future impact of artificial intelligence on the economy.
Anna Moneymaker | Getty Images
The White House has repeatedly touted the IRS’s direct-file system, which allows people to file their taxes directly for free, as part of the Biden administration’s broader goal of fixing what it often describes as a broken tax system that favors the wealthy.
Direct File was piloted in 12 states during the 2024 tax filing season. More than 140,000 taxpayers took advantage of it, saving $5.6 million on federal filing fees and resulting in $90 million in tax refunds, Yellen said.
The service is expected to be available in all 50 states starting in 2025. Currently, the IRS partners with a number of private tax firms through its Free File program to offer free tax filing to some Americans.
The IRS has been a constant bone of contention in Congressional budget talks, with Democrats arguing that the agency is underfunded and some Republicans viewing it as a hotbed of overspending.
“The Internal Revenue Service is underfunded, which means taxpayers are not getting the help they deserve,” Yellen said.
