Pennsylvania Governor Josh Shapiro speaks during a campaign rally for Vice President Kamala Harris on July 29, 2024 in Abler, Pennsylvania.
Hannah Beier | Getty Images
Pennsylvania Gov. Josh Shapiro has defended his support for “aggressive” business tax cuts, a position that could rankle some of his fellow Democrats, but won him support from the state’s business community.
“We needed a more favorable tax environment for our businesses, and it was one element of an overall 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 competitive as hell” with other states, he said. That’s why “I’m working so aggressively to lower business taxes.”
Shapiro had joined Yellen in announcing that Pennsylvania, a key election battleground, would be the next state to gain access to the Internal Revenue Serviceof the new free tax filing system.
But with Vice President Kamala Harris set to pick her running mate sometime in the next 10 days, the event offered Shapiro his last chance to showcase his modest record on economic policy.
Shapiro is on a short list in the Harris veepstakes, along with Minnesota Gov. Tim Walz, Arizona Sen. Mark Kelly, Illinois Gov. JB Pritzker, Kentucky Gov. Andy Beshear and Transportation Secretary Pete Buttigieg. Governor of North Carolina Roy Cooper out of the running on Monday night.
For Harris, the popular Pennsylvania governor could help clinch a key state. His well-spoken speeches and connections to high-dollar donors could also be assets for Harris’ campaign as Election Day approaches in less than 100 days.
As Shapiro moves through the behind-closed-doors vice presidential vetting process, voters are evaluating his policy positions.
The economic positions he laid out on Tuesday tried to walk the line between pro-worker and pro-consumer, mirroring the Biden-Harris administration, while remaining business-friendly.
On Sunday, Shapiro is scheduled to attend a luncheon with Democratic donors in the Hamptons, CNBC reported Monday.
Like Shapiro, Yellen raised many questions about the economic priorities of a potential Harris administration.
On tax cuts, Yellen said she expects Harris to stay largely in line with President Joe Biden’s pledge to avoid tax increases for middle-income families. He also said Harris will likely support child care issues such as paid leave and an expanded child tax credit.
“I wouldn’t want to try to elaborate more than that on what her priorities are going to be, but those are certainly things that she’s focused on and committed to over the last three and a half years,” Yellen added.
US Treasury Secretary Janet Yellen speaks during the Financial Stability Oversight Board Conference on Artificial Intelligence and Financial Stability at the US Treasury Department on June 6, 2024 in Washington, DC. During her remarks, Yellen talked about the future effects of artificial intelligence on the economy.
Anna Moneymaker | Getty Images
The White House has repeatedly touted the IRS’ Direct File system, which allows users to file taxes directly, for free. It’s part of the Biden administration’s broader goal to fix what he has often called a broken tax system that favors the wealthy.
Direct File ran as a pilot in 12 states during the 2024 tax filing season. According to Yellen, more than 140,000 taxpayers used it, saving them $5.6 million in federal filing fees and issuing them $90 million in tax refunds .
It is set to become available in all 50 states starting in 2025. The IRS currently works with many private tax firms through the Free File program to provide free tax filing to certain Americans.
The IRS has regularly been a point of contention in budget debates on Capitol Hill, as Democrats say the agency is underfunded while some Republicans see it as a pocket of overspending.
“The Internal Revenue Service has been underfunded. That means taxpayers haven’t gotten the support they deserve,” Yellen said.
