Jul. 01, 2025
HARRISBURG – The General Assembly’s failure to pass a budget by the June 30 deadline marks a step backward for Pennsylvania’s economy and competitiveness, according to Rep. Valerie Gaydos (R-Allegheny).
“Unfortunately, Harrisburg gridlock is keeping us stuck and preventing forward movement,” said Gaydos. “The failure to advance a budget delays real solutions and sends another bad signal to job creators. We need a budget that grows our economy, not one that keeps adding costs without a way to pay for them.”
Gaydos criticized
House Bill 1610, which narrowly passed the House and is awaiting consideration in the Senate. The bill would impose combined reporting for corporate taxes, a policy she says will reverse recent bipartisan progress on tax reform and hurt economic growth.
“This legislation punishes employers and undoes the progress we made on cutting the corporate tax rate,” said Gaydos. “If we keep driving businesses away, we won’t have the revenue to support the services people rely on.”
Gaydos added Pennsylvania cannot sustain expanding programs – especially in human services – without a strong economic engine to fund them.
“We can’t keep growing the safety net while we shrink the economy,” Gaydos said. “The path forward is clear: lower taxes, fewer regulations, affordable health care options and real energy development.”
Gaydos has introduced several proposals aimed at reversing Pennsylvania’s economic slide and making the Commonwealth more competitive:
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House Bill 1444 – Association Health Plans: This would allow small businesses to band together to offer affordable, high-quality health insurance to their employees, just like large corporations already do. “This helps our small employers stay competitive, offer more generous benefits and attract talent,” said Gaydos.
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House Bill 1394 – Repealing the Inheritance Tax: Gaydos wants to eliminate what she calls an outdated and unfair “death tax” that burdens families and drives wealth out of the state. “This tax punishes people at their most vulnerable moment and discourages long-term investment in Pennsylvania,” she said.
• Improving Net Operating Loss (NOL) provisions: Pennsylvania currently has one of the most restrictive NOL rules in the nation. Gaydos supports aligning NOL policies with other states to give companies more flexibility to grow and reinvest. “This helps start-ups and cyclical industries weather tough years and stay in Pennsylvania,” said Gaydos.
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House Bill 1362 – Taxpayer Surplus Refund Program: Instead of spending the state’s surplus and Rainy Day Fund on new recurring obligations, Gaydos proposes returning excess revenues directly to taxpayers. “It’s their money. Let them use it for their own needs and to pay off debt. It is what the money was intended for,” she said.
Gaydos also called for renewed focus on improving Pennsylvania’s energy sector, tax code, regulatory environment and education system.
“We need to unleash energy production, modernize outdated tax policies, cut through red tape, and give families real educational choices,” said Gaydos. “These are the tools that will grow our economy and fund our future.”
She warned that without these reforms, Pennsylvania will continue to fall behind.
“We have the people, the skilled trades, the location and the resources to lead the nation again,” said Gaydos. “But we need to stop chasing away job creators, investment and families. The status quo is not sustainable. Growth is the only way forward.
“I will be fighting for a budget that will help to grow our economy and is fiscally responsible, balanced and reflective of the needs of our communities,” said Gaydos.
Representative Valerie Gaydos
44th Legislative District
Pennsylvania House of Representatives
Media Contact: Rick Leiner
717.260.6437
rleiner@pahousegop.com
RepGaydos.com / Facebook.com/RepGaydos