State Budget Must Hold the Line on Spending and Include No Tax Increase
As the Commonwealth begins a new fiscal year without a state budget, I call on legislative leaders and the governor to craft a plan that controls spending and requires no increase in taxes. The people of Pennsylvania simply cannot afford to pay more of their hard-earned money to state government.
When Gov. Ed Rendell presented his 2009-10 spending plan to the General Assembly in February, he called for increasing expenditures by $705 million, totaling $28.97 billion. Not only is this level unachievable given the lack of revenue, it is also irresponsible especially with the current economic climate throughout the Commonwealth and across the country.
The governor has proposed increasing or creating several taxes to fund his plan, including:
- A 16 percent increase in the Personal Income Tax, which would increase from 3.07 percent to 3.57 percent.
- A 10-cent per pack tax increase on cigarettes.
- Adding a new tax to smokeless tobacco products.
- Imposing additional taxes on the extraction of natural gas from the Marcellus Shale formation.
- Delaying the reduction of the Capital Stock and Franchise Tax, which is paid by businesses on their assets.
- Eliminating the fee businesses retain by collecting sales tax for the Commonwealth.
Since assuming office in 2003, Rendell has done nothing but tax, borrow and spend on the backs of the taxpayers throughout the Commonwealth. Furthermore, his policies have mortgaged the futures of our children and grandchildren, who will be left with the financial burden long after he leaves office. As I have said in the past, we cannot tax, borrow and spend our way to prosperity.
I believe that the governor is completely disconnected from the realities citizens are facing each and every day. People are struggling to make ends meet. Many are faced with a decrease in income, loss of jobs, higher grocery and utility bills, not to mention that thousands of Pennsylvanians who have been losing their homes. It’s also important to remember that state taxes are not the only burden placed on taxpayers. They are also faced with taxes by the local and federal government. Combined, Pennsylvania citizens hand over a large amount of their income to all three levels of government.
It has been proven that the worst time to raise taxes is during a recession. When government takes more money from citizens, it results in their inability to spend and help the economy recover. The governor should adhere to the advice given by President Obama, who said, “In an economy like this, the last thing we should do is raise taxes on the middle class.” I couldn’t agree with him more. For several years, House Republicans have been touting this issue since recognizing the perils of the governor’s excessive spending.
To counter the governor’s proposal, on May 6, the state Senate adopted a spending plan (Senate Bill 850) totaling $27.3 billion, which reduces expenditures by $1.7 billion, substantially less than the governor’s far-reaching proposal. The Senate’s budget plan takes into account actual revenues, and like we all know you cannot spend more than you have.
Although the Senate’s budget failed in the House Appropriations Committee on a party line vote, this budget was realistic, responsible, and reflected the effects of the faltering economy and falling state revenues that have plagued the Commonwealth over the past year. Most importantly, the Senate’s budget controls spending without raising taxes. My colleagues and I are not asking state government to do without, but what we are asking is for state government to do with less, just like families in the 11th District.
As budget negotiations continue in Harrisburg, it is important for the people of Pennsylvania to voice their concerns regarding more spending and tax increases. I encourage residents of the 11th District to visit StopPATaxHike.com to share their comments about the 2009-10 state budget and to sign a petition to say “NO” to tax increases.
Rep. Brian Ellis
11th District
Pennsylvania House of Representatives
(724) 283-5852
(717) 787-7686
Contact: Tim Eller
House Republican Public Relations
(717) 260-6242