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For Immediate Release
June 22, 2004
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SENATE MAJORITY WHIP & CAUCUS
ADMINISTRATOR 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.
CONTACT: Colleen Greer (Sen. Piccola), (717) 787-6801; Leigh Ramsey
(Sen. White), (717) 787-9684
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