RENDELL: “WE SIMPLY CANNOT CUT ENOUGH TO BALANCE THE BUDGET.â€
In a statement released yesterday afternoon, Governor Rendell acknowledged he believes a broad-based tax increase is necessary, in conjunction with additional cuts, to make up the state’s budget deficit. He outlined his plan as follows:
“First, unfortunately we must suspend the business tax cuts that were planned for this year known as the phase out of the Capital Stock and Franchise Tax. Since taking office, I have cut business taxes by $1.7 billion. But business must shoulder some of the burden. I am not – I repeat – I am not raising taxes on businesses. I am proposing that — in this recession — we delay further business tax cuts. Next, I am proposing to raise our state income tax, the nation’s second lowest, from its current rate of 3.07 percent to 3.57 percent. Even with this increase, Pennsylvania will have the third lowest personal income tax rate in the nation. And I propose that when we enact these tax changes, we write the laws to guarantee that the phase-out of the business taxes begins again in 2012 and that we roll
Continue reading Eye Opener – June 18, 2009