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Piccola & White Seek to Reverse 2003 Tax Increase
HARRISBURG -- Senate
Majority Whip Jeff Piccola (R-15) and Senate Majority Caucus Administrator Mary
Jo White (R–21) have unveiled Senate Bill 1179, legislation that would return
the Personal Income Tax rate back to 2.8 percent over the next three years.
This measure has the support of 20 other cosponsors.
In introducing this legislation, Piccola said, “We
now know that Senate Republicans’ 2003 battle with Governor Rendell over
increasing taxes proved that we were right and the Governor was wrong.
Recent revenue projections have shown that Pennsylvania does not -- and did not
-- need to increase taxes. We need to correct that mistake in 2004.”
“We need to do a better job of fighting to keep
government out of people’s pockets by ensuring that Pennsylvania lives within
its means so that its taxes are both fair and reasonable,” White said.
“To paraphrase the Governor when he introduced Part
I of his budget last year, I hated the vote to raise taxes with every fiber of
my being. We argued for months with him that the income tax increase was
not needed, since the economy was growing. However, we finally had to
exercise leadership and come to a compromise that would allow our schools to
remain open,” added Piccola.
According to revenue estimates from the
Administration’s Revenue Department, Pennsylvania currently benefits from a $450
million surplus. It is predicted that this surplus will exceed a half
billion dollars by June 30th, which marks the end of the fiscal year.
Piccola and White believe these projections show that we need to seriously
consider tax reductions -- both personal and business tax reductions.
“Unfortunately into our second year of the Rendell
Administration, we continue to struggle with the Governor’s unnecessary taxes
and increases in spending. The Governor’s other favorite approach is to
call for more borrowing. He seems bound and determined to max out the
state’s credit cards. It’s a funny thing when you borrow money; it has to be
paid back -- with interest,” said Piccola.
Both Piccola and White hope to make this a priority
as the General Assembly and Governor prepare to finalize the 2004-2005 state
budget. “We need to revisit Pennsylvania’s tax rates. Every time
money and capital are taken from taxpayers’ pockets, both jobs and job
opportunities are threatened. SB 1179 is the type of initiative that is
needed to begin lowering taxes in Pennsylvania,” White added.
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