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State GOP legislators attack potential tax increases
Wednesday, July 01, 2009

HARRISBURG -- Republican lawmakers went on the budget offensive today, putting a large board, containing the names of all 253 legislators, in the Capitol rotunda. They then began checking off their names on a petition against approving any tax increases to balance the unresolved 2009-10 state budget.

In a rare move, the Republican legislators, led by House Minority Leader Sam Smith of Punxsutawney, said they agreed with a statement made last September by then-Democratic presidential candidate Barack Obama, who said now is "the wrong time to raise taxes on the middle class.''

Mr. Smith said he expected the vast majority, if not all, of the 99 House Republicans to sign the anti-tax petition. He was hoping some Democratic legislators would do so too.

He, along with Commonwealth Foundation President Matthew Brouillette and RockTheCapital leader Eric Epstein, said their petition drive is called "Yes, We Can,'' meaning a new state budget can be balanced without tax increases.

"The governor has said the budget can't be balanced without some new or higher taxes and we disagree,'' said Mr. Brouillette.

Mr. Smith said he wants House Democratic leaders to bring one of two budget bills to the House floor for a vote -- either Senate Bill 850, the $27.3 billion budget proposal which has passed the GOP-controlled Senate, or House Bill 1416, which is Mr. Rendell's $28.8 billion spending proposal for the fiscal year that started today.

Mr. Smith said he would then try to amend either bill with a bottom-line spending proposal "in the neighborhood of Senate Bill 850, without any tax increases.''

But so far House Democrats have been unwilling to introduce either budget bill. Mr. Smith said he thinks there are at least 10 House Democrats who would vote for the GOP budget amendment rather than for Mr. Rendell's 2009-10 budget, which entails a 16 percent increase in the personal income tax, along with higher tobacco taxes, a new tax on natural gas extraction and using much of the $750 million Rainy Day Fund. Several Democrats from the Pittsburgh area have spoken against the proposed income tax increase. It takes at least 102 votes in the House to approve a bill.

However, Rendell spokesman Chuck Ardo contended Senate Bill 850 is $1.5 billion out of balance and thus constitutionally invalid. The Senate approved it, on a party line vote, on May 6, but since then state revenues have continued to fall off because of the recession and it is now far out of balance, he said.

"If the Republicans believe we can pass a budget without a tax increase, let them produce a balanced budget for us to review,'' he said.

Tom Barnes can be reached at tbarnes@post-gazette.com.
First published on July 1, 2009 at 11:07 am