You pay taxes, but policy decisions made by the legislature exempts cigars, smokeless tobacco, natural gas, and most corporations doing business in PA from paying their fair share.
The state budget is facing a significant deficit again this year. Most of the discussion focuses on the General Fund, which is has a billion dollar shortfall. Much of the blame for this deficit can be attributed to the current recession, which has reduced revenues from the income and sales taxes.
But there are significant deficits elsewhere in the state budget that are a result of policy decisions made by the legislature.
- There is a billion dollar PER YEAR shortfall in the funding for roads, bridges, and transit. We've known about this since 2006. Time was wasted on such schemes as Leasing the Turnpike and Tolling I-80. The lack of investment in our transportation infrastructure has left Pennsylvania with 5,600+ structurally deficient bridges -- the most in the nation. Additional revenue is needed to maintain our existing transportation system and deal with MISSING LINKS. The most likely sources are the oil franchise tax (an adjustment would bring in $420+ million) and the gas tax (each penny brings in $62 million).
- The pension system operated by the state faces a $4 billion shortfall. Legislators accepted the accolades that came with increasing pensions (including a 50% increase in their own pensions) and for cutting state business taxes by several billion. But when problems arose, they put off the day of reckoning. Ten years of under-funding, combined with the economic recession, has created a "crisis". State employees and teachers contribute to their pension plans. School districts also contribute, with half of their contribution reimbursed by the state. Currently, school boards are contributing 4.78% of payroll towards employee pensions. That goes to 8.22% this July, and to a whopping 33.76% by 2016.
And while YOU are likely to be billed to make up these shortfalls, that isn't true for everyone in Pennsylvania -- unless changes are made.
Pennsylvania can no longer exempt sections of the business sector from contributing their fair share.
- We are the only state in the nation that does not apply its tobacco tax to cigars and smokeless tobacco.
- Companies developing the Marcellus Shale are worth billions. We are the only state that does not receive revenue on the extraction of natural gas and exempts these companies from paying school, county, and municipal taxes.
- And almost three fourths of the corporations doing business in Pennsylvania escape paying the Corporate Net Income Tax.
No wonder YOU pay so much!
As your State Senator, I would:
- Work to restore fairness to our tax system. Everyone needs to pay their fair share.
- Seek funding to maintain our existing infrastructure and fill-in MISSING LINKS.
- Bring a long term perspective to the budget process so that we are longer surprised by a "crisis" that was 10 years in the making.
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