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For Immediate Release
November 2, 2005
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White: Senate Votes to Cut Taxes,
Reform Gaming Law, Repeal Pay Raise
Harrisburg – The state Senate today acted on three significant
measures, voting to cut taxes, strengthen ethics safeguards in the state
gaming law, and repeal the pay raise for the legislative, executive and
judicial branches.
White said the Senate approved House Bill 515, a two-step reduction
in the state Personal Income Tax, which is levied on individual wage
earners and small businesses in the Commonwealth.
The first phase, set for 2006-07, would reduce the PIT rate from the
current level of 3.07 percent to 3.03 percent, which would provide $120
million in savings for individual taxpayers and small businesses. Under
phase two, set for 2007-08, the PIT rate would drop from 3.03 percent to
2.98 percent, which would provide an estimated $160 million in savings
for individuals and small businesses.
"The tradition in Pennsylvania has been that, if taxes are raised in
a recession, we lower them again when the economy improves. The economy
and revenues have improved since the PIT was raised, and it's only
fitting that we bring it back down," said White.
In addition to the PIT cuts, House Bill 515 would promote economic
growth and job creation through a package of $325 million in tax cuts on
job creators over the two-year period, White said. The business tax cut
package includes an expansion of the Net Operating Loss cap to $20
million and a reduction in the Corporate Net Income Tax rate from 9.99
percent to 9.59 percent in 2007-08.
House Bill 515 was returned to the House of Representatives for
consideration.
The Senate also approved legislation that adds a comprehensive list
of ethical safeguards to Pennsylvania's gaming law.
Senate Bill 862 prohibits any public official, executive-level public
employee or party official, or the spouse or minor of the official, from
holding a financial interest in a licensed gaming entity during their
tenure and for one year thereafter. Current law allows public officials
to hold up to one-percent ownership in gaming-related companies.
The bill also sets new ethical standards for the Pennsylvania Gaming
Control Board, the panel established to regulate gaming in the
Commonwealth. Among the standards are requirements that the board
conduct a review prior to any proceeding to determine if any member has
a conflict of interest, and the appointment of alternate members to
serve when a member must recuse himself or herself due to a conflict or
the potential appearance of impartiality.
"I didn't support the expansion of gambling in Pennsylvania when it
passed last year, and I definitely felt there were too many ethics
loopholes in the law," said White. "This bill closes those loopholes
and sends the message that if we are going to have gambling, we're going
to do our best to ensure that everything is above board."
Senate Bill 862 was sent to the House of Representatives for
consideration.
The Senate also approved House Bill 1539, legislation to repeal the
pay raise for the legislative, executive and judicial branches approved
in July.
White voted against the pay raise in July, did not accept the
unvouchered expense money, and voted for the repeal today.
House Bill 1539 awaits further action in the House of
Representatives.
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