Scarnati Talks Taxes
By ANNE HOLLIDAY
WESB/WBRR News Director
Lt. Governor and Senator Joe Scarnati says he had hoped House Democrats and Governor Ed Rendell learned last year that Senate Republicans won't go along with a tax increase but, instead, it looks as if another tough budget season is ahead.
Rendell has proposed lowering the state sales tax from 6 percent to 4 percent, but taking tax exemptions off dozens of items.
"He has some really neat words he uses to make you feel good, but it's over a billion dollar tax increase," Scarnati said.
Scarnati said he's willing to debate what should be taxed and what shouldn't, "but the point of the matter is it's a $1.2 billion tax increase."
"You may not see it as well as you see property tax or (tax) coming out of your paycheck, but that's still a massive tax increase," he said.
He said would be willing to debate Rendell in a public forum on several issues.
One of those issues is a tax on plumbing services.
Scarnati acknowledged that it isn't cheap to have a plumber come to your house, even without adding tax to the bill.
"A lot of people don't call plumbers because it is expenseive, but the governor wants to tax plumbing." he said.
The second issue is services funeral homes provide.
"I really don't think the greiving family members are going to be happy about that," he said.
The third group of items is women's personal hygiene products.
"I really would encourage the governor to let that one go," Scarmati said. "I think that is really dipping to the lowest level of taxation and I'd love to hear what women think aobut that.
In all, Rendell has proposed lifting the exemption on about 70 items and services.
"I could feel a whole lot beter about telling my constituents that we need a tax increase if we were really doing the job -- if this governor and the Democrats were clearning up waste, fraud and abuse -- and that's not happened yet. It just hasn't happened yet," he said.
There may come a time when they have to talk about more revenue, but that time isn't here yet, he said.
Another controversial tax issue concerns Marcellus Shale drillers.
Scarnati noted that when Rendell was trying to attract solar and wind energy companies to come to Pennsylvania, he offered them tax credits.
"The people that are here digging Marcellus Shale wells are not asking for a tax credit. They're just asking for a fair playing field," he said.
He added that you can't compare the extraction tax in other states to Pennsylvania, saying that 5 percent in Texas isn't the same because their tax structure is different, and real estate, corporate and personal income taxes are far lower.
"You're not comparing apples to apples," he said.
He also believes that if the tax structure in Pennsylvania becomes regressive and onerous, the drillers will pick up and move to other states.
"This is an industry that is creating jobs," Scarnati said. "We need to make sure this industry gets on its feet, make sure this industry is treated fairly; make sure environmental concerns are all handled appropriately."
I'm not advocating that we let these companies rape and ravage our resources here," he said. "What I'm advocating is -- let's have a balance ... Let's go back to what the solar and wind industry got. They got tax credits."
Senator Andy Dinniman of West Chester County is proposing legislation that would have part of a natural gas severence tax go toward property tax relief. He said the severance tax would provide $478 million in property tax relief by 2014, reducing the average annual property tax bill by nearly $150.
Dinniman's legislation would also dedicate $50 million in severance tax revenues to the following: local governments and communities affected by the drilling and transportation of natural gas; the Environmental Stewardship Fund; the Pennsylvania Fish and Boat Commission; and the Pennsylvania Game Commission.
"There's going to be quite a debate in Harrisburg over issues that need to be changed to make sure this industry stays and grows here," Scarnati said, adding that if a tax comes out it, it has to be a tax that keeps Pennsylvania on par with other states.
The Legislature is back in session on Monday.
We also talked about tourism and other issues, which I will write about soon.
WESB/WBRR News Director
Lt. Governor and Senator Joe Scarnati says he had hoped House Democrats and Governor Ed Rendell learned last year that Senate Republicans won't go along with a tax increase but, instead, it looks as if another tough budget season is ahead.
Rendell has proposed lowering the state sales tax from 6 percent to 4 percent, but taking tax exemptions off dozens of items.
"He has some really neat words he uses to make you feel good, but it's over a billion dollar tax increase," Scarnati said.
Scarnati said he's willing to debate what should be taxed and what shouldn't, "but the point of the matter is it's a $1.2 billion tax increase."
"You may not see it as well as you see property tax or (tax) coming out of your paycheck, but that's still a massive tax increase," he said.
He said would be willing to debate Rendell in a public forum on several issues.
One of those issues is a tax on plumbing services.
Scarnati acknowledged that it isn't cheap to have a plumber come to your house, even without adding tax to the bill.
"A lot of people don't call plumbers because it is expenseive, but the governor wants to tax plumbing." he said.
The second issue is services funeral homes provide.
"I really don't think the greiving family members are going to be happy about that," he said.
The third group of items is women's personal hygiene products.
"I really would encourage the governor to let that one go," Scarmati said. "I think that is really dipping to the lowest level of taxation and I'd love to hear what women think aobut that.
In all, Rendell has proposed lifting the exemption on about 70 items and services.
"I could feel a whole lot beter about telling my constituents that we need a tax increase if we were really doing the job -- if this governor and the Democrats were clearning up waste, fraud and abuse -- and that's not happened yet. It just hasn't happened yet," he said.
There may come a time when they have to talk about more revenue, but that time isn't here yet, he said.
Another controversial tax issue concerns Marcellus Shale drillers.
Scarnati noted that when Rendell was trying to attract solar and wind energy companies to come to Pennsylvania, he offered them tax credits.
"The people that are here digging Marcellus Shale wells are not asking for a tax credit. They're just asking for a fair playing field," he said.
He added that you can't compare the extraction tax in other states to Pennsylvania, saying that 5 percent in Texas isn't the same because their tax structure is different, and real estate, corporate and personal income taxes are far lower.
"You're not comparing apples to apples," he said.
He also believes that if the tax structure in Pennsylvania becomes regressive and onerous, the drillers will pick up and move to other states.
"This is an industry that is creating jobs," Scarnati said. "We need to make sure this industry gets on its feet, make sure this industry is treated fairly; make sure environmental concerns are all handled appropriately."
I'm not advocating that we let these companies rape and ravage our resources here," he said. "What I'm advocating is -- let's have a balance ... Let's go back to what the solar and wind industry got. They got tax credits."
Senator Andy Dinniman of West Chester County is proposing legislation that would have part of a natural gas severence tax go toward property tax relief. He said the severance tax would provide $478 million in property tax relief by 2014, reducing the average annual property tax bill by nearly $150.
Dinniman's legislation would also dedicate $50 million in severance tax revenues to the following: local governments and communities affected by the drilling and transportation of natural gas; the Environmental Stewardship Fund; the Pennsylvania Fish and Boat Commission; and the Pennsylvania Game Commission.
"There's going to be quite a debate in Harrisburg over issues that need to be changed to make sure this industry stays and grows here," Scarnati said, adding that if a tax comes out it, it has to be a tax that keeps Pennsylvania on par with other states.
The Legislature is back in session on Monday.
We also talked about tourism and other issues, which I will write about soon.
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Comments
Scarnati tap dances across Taxes.