Fat Ed Rendell to seek temporary income tax hike

[larrymeyer]

http://www.delcotimes.com/articles/2...a850648216.txt

Rendell to seek temporary income tax hike
Published: Tuesday, June 16, 2009

By JOE MANDAK, Associated Press Writer

CRANBERRY, Pa. — Gov. Ed Rendell on Tuesday said Pennsylvania should temporarily increase its personal income tax rate to generate $1.5 billion a year to deal with a severe downturn in state revenues.

He wants a half-percentage-point increase, which would raise the rate from 3.07 percent to 3.57 percent, to help close a $3.2 billion revenue gap.

The proposal is necessary because, even with severe cuts, the state still has a budget deficit, the governor said.

"The simple truth is we have no good choices," Rendell said. "There are no shortcuts out of this crisis, no magic bullets, no painless path out of this morass."

The announcement at the Westinghouse complex in Cranberry, made two weeks before the state's fiscal year ends, is the first time Rendell has advocated increasing a broad-based tax to cope with the financial crisis. He said he continues to also favor new taxes on tobacco and natural gas extraction, and dipping into the state's "rainy day" contingency fund.

An income tax increase faces a tough fight in the Legislature, where Republicans who control the state Senate have offered a state budget that relies on cuts rather than additional taxes.

During 2003, Rendell's first year in office, he and lawmakers increased the personal income tax rate from 2.8 percent to its current level. It was also increased in the difficult budget year of 1991 from 2.1 percent to 3.1 percent for one year, then reduced back to 2.8 percent.

Senate Majority Leader Dominic Pileggi, R-Delaware, said there is no support within his caucus for increasing the personal income tax. Pileggi said he wants to see revised budget details from the administration, including multi-year projections about how the tax increase would affect spending, but he was doubtful about the temporary nature of the proposal.

"Many taxes that we currently have on the books, when they were first proposed, were proposed as temporary taxes," Pileggi said. "The unfortunate tendency is, once taxes are imposed, they stay in place."

He said a personal income tax will, over time, make the state less competitive and result in lost jobs.

"There is talk in Harrisburg that we can cut our way out of this problem," Rendell said. "I'm sad to tell you today that we simply can't."

Rendell said he settled on a three-year increase to cope with projected deficits for the next two years, and then to help the state balance its books once federal stimulus funding runs out.

The proposed rate of 3.57 percent would leave Pennsylvania with the nation's third-lowest state income tax rate, according to the governor's office.

[Paradigm]

"Temporary tax"...heh...right! This state still collects the Johnstown Flood tax from 1936.

[larrymeyer]

I normally don't do this but in this case I have to reply.

1 Went to sleep last night at about 0300 hours missed when the recession ended

2 Where our the people of PA going to get the money to pay for this ?

3 What is a temporary tax and when was the last time you saw one. As for me I never saw one

4 Oh yes the city wage tax in Phila is a temporary tax

5 All the sheep that follow Fat Eddie should carry him across the bridge to NJ
NY is piss at their Governor and want to bring Spritzer back maybe we can give them Fat Eddie

[Stooperzero]

What a Douche..


I hope he gets Swine Flu and drops dead in a hotel room with an Obese multi amputee hooker.

[Paradigm]

I hope he gets Swine Flu and drops dead in a hotel room with an Obese multi amputee hooker.

While I don't agree with your word choice, I must say that they do paint a vivid picture. A nasty, vivid picture...

[PocketProtector]

Does any politician have ANY other managerial skills other than raising taxes ??? Every single Gov't entity, State, Local, Federal, etc, etc, the appetite for more taxpayer money is insatiable. ALL are raising taxes across the board NO MATTER what the economic conditions, not that they should matter.

How the sheeple continually vote for these asshats is completely unimaginable.

[thanker92]

We should put a tax on bullshit.
Just the money from politicians alone would give us a surplus.

[schmol]

I guess we will never see a end to the property taxes either...why dont we just forward all of our paychecks over to the state and they can return what is not used.

[US Militiaman]

I guess we will never see a end to the property taxes either...why dont we just forward all of our paychecks over to the state and they can return what is not used.

Might as well...I mean that is what they do in Canada and Europe, and it is working out so well for them...

...Wait a minute...

I love how the solution is never to cut spending, but rather just bring in more money. I can just see how well that would go over when talking one's boss..."Oh this year I don't have enough money to support everything I want to buy, so you need to pay me more. Oh, and you don't have a choice in it..."

[1861]

Come on guys , VP Biden said we should do our patriotic duty and joyfully pay more taxes .