Initially, reports out of my home state of Pennsylvania were that Governor Rendell planned to raise income taxes by about 10% to 3.37%. This week, Governor Rendell outlined his plan to raise income taxes by 16% to 3.57%.
Under Rendell, the tax rate has increased once before, in 2004, an increase that was made permanent. The Governor claims that this time, the hike would only be temporary and would sunset after 3 years.
It’s not yet known whether the legislature will approve the budget. The GOP submitted a balanced budget which would have resulted in no tax increases, but the Democrats balked at the $3 billion in cuts for education, law enforcement and social programs.
I’ll admit that I haven’t read the new proposal in detail (trying to get a copy of proposal today). Cutting back is needed but some areas, like Philadelphia, can’t afford more cuts to schools and police. In my own neighborhood, the City has already had to make cuts affecting fire protection – our closest fire house was shut down last year, causing concern (and lawsuits).
I tend to believe that there is wiggle room in the budget. I have to believe that there was something that could be cut other that schools and police. What about those legislative salaries and perks?
Cutting legislative salaries and perks? Now that’s a novel idea. And I’ll sure not one of our (I’m from PA, too.) representatives or senators in Harrisburg thought of that one.
Governments always cut the popular items first so that people will accept tax increases. The vast sums they waste on things no one cares about only get found when the people fight back.
There is no such thing as a temporary tax when it comes to Uncle Sam. My local government has a temporary 3/4% tax that has been going for 20 years. Every time it comes up for vote, the crying from government starts. They lied when they enacted it and now they can’t live without it. If they were mature adults, they would try make it what it is, permanent. That way, we wouldn’t have to hear them whine every 4 years about how important it is. Last year was the renewal year and they threatened to cut back police and fire if it didn’t pass. It passed after scaring everyone and then shortly there after they started cutting police and fire anyway. They have cut our police force by a third when the economy is driving up property crimes. Politicians are perpetual liars who would say anything to get what they want. At the same time they are cutting police, they some how find money to open up the public pools. They claim that it will keep kids of the streets and out of trouble. The last I checked, that was the parents job.