Rep. Causer: Rendell is Wrong
HARRISBURG - Gov. Ed Rendell is wrong to ask Pennsylvanians to pay more in state income taxes to fund his proposed budget of more than $29 billion, Rep. Martin Causer (R-Turtlepoint) said today.
"Pennsylvanians everywhere are cutting their family budgets to make ends meet - the last thing state government should be doing is making it tougher for them," Causer said. "Increasing taxes by $1.5 billion will do nothing to help the economy recover. In fact, it will have the opposite effect, leaving Pennsylvania families with less money to spend and many small businesses, which are also subject to the tax, with fewer resources to pay their employees and expand their operations."
Causer noted that rather than cutting the state budget, Rendell is actually proposing to increase spending by at least $700 million over the current year.
"Only this governor would propose a significant increase in spending in the face of a $3.2 billion deficit," he said. "It completely defies logic."
The lawmaker also questioned the governor's claim that the income tax hike - from 3.07 percent to 3.57 percent, an increase of 16 percent - will be temporary, citing the "Johnstown Flood Tax" that was imposed in 1936 as a temporary tax to help the City of Johnstown recover from flood damage.
"More than seven decades later, Pennsylvanians who buy liquor are still paying the tax," Causer said. "I'll believe 'temporary' when I see it."
A state budget is supposed to be adopted by June 30, but that's never happened during the Rendell administration.
"Pennsylvanians everywhere are cutting their family budgets to make ends meet - the last thing state government should be doing is making it tougher for them," Causer said. "Increasing taxes by $1.5 billion will do nothing to help the economy recover. In fact, it will have the opposite effect, leaving Pennsylvania families with less money to spend and many small businesses, which are also subject to the tax, with fewer resources to pay their employees and expand their operations."
Causer noted that rather than cutting the state budget, Rendell is actually proposing to increase spending by at least $700 million over the current year.
"Only this governor would propose a significant increase in spending in the face of a $3.2 billion deficit," he said. "It completely defies logic."
The lawmaker also questioned the governor's claim that the income tax hike - from 3.07 percent to 3.57 percent, an increase of 16 percent - will be temporary, citing the "Johnstown Flood Tax" that was imposed in 1936 as a temporary tax to help the City of Johnstown recover from flood damage.
"More than seven decades later, Pennsylvanians who buy liquor are still paying the tax," Causer said. "I'll believe 'temporary' when I see it."
A state budget is supposed to be adopted by June 30, but that's never happened during the Rendell administration.
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