For Immediate Release
June 17, 2009
Contact: Todd Nyquist
(717) 787-7084
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Scarnati:  No Tax Increases

WARREN--Governor Ed Rendell's proposal to hike the state's personal income tax by almost 17 percent is the worst thing to do for Pennsylvania at the worst time according to Senate President Pro Tempore Joe Scarnati who said such a move would be job-crushing and fiscally irresponsible.

"At a time when we are facing an economic crisis not seen since the Great Depression, the last thing we can afford to do is raise taxes on working people and job creators who are already struggling to make ends meet," Scarnati said.  "There is no support in the Republican Senate for this type of broad-based tax increase, and it will certainly not sit well with Pennsylvania families who have to make tough financial choices right now and control their own spending."

The governor has proposed hiking the Personal Income Tax to 3.57 percent from the current 3.07 percent for three years to raise approximately $1.5 billion per year in new revenue.  This increase is approximately 17 %.   He also proposed stopping the phase-out of the Capital Stock and Franchise Tax, which would be another burden to job creators and, quite frankly, workers looking to find family-sustaining jobs.

Scarnati also noted that the Senate passed its own proposed budget in early May, one that includes no new taxes and is fiscally prudent.   Since then, the Administration has repeatedly used scare tactics to drum up opposition to Senate Bill 850.

"Now, with the clock ticking, the governor is asking us to support a fiscally irresponsible tax increase that could cripple our economy and prevent us from recovering from this economic downturn," Scarnati said.  "Increased taxes will only ensure a prolonged recession and will only ensure that working families and businesses will not be able to invest in their communities."

"I certainly look forward to seeing a vote in the House on the Governor's newly proposed budget," Scarnati concluded.  "The Senate has passed a budget and it failed in the House.  Therefore, I anxiously await a vote in the House on a tax increase, balanced budget.  At that point we can begin sincere negotiations."