Adjust Text Size

FOR IMMEDIATE RELEASE
February 9, 2010
Back to Releases

Orie Opposes Governor's New Taxes & Higher Spending

Orie Will Fight For a Budget that Lives within Our Means

Today, Governor Ed Rendell put forth his 2010-11 Budget, his 8th and last budget, -- proposing to spend $29.03 billion, or 4.1 percent over the current fiscal year.  The Governor is calling for a massive expansion of the Sales Tax, new business taxes, and a new tax on Marcellus Shale drilling.

"At a time when Pennsylvania and average citizens are attempting to climb their way out of the worst recession since the Great Depression, the Governor's tax and spending proposals are putting more obstacles in our path to prosperity," said Sen. Orie. 

Overall, the Governor proposed the following tax measures:

• Expanding the Sales Tax to include 74 additional items and services including: basic television, candy/gum, coal, firewood, flags, magazines, personal hygiene products, residential telephone service, and water and sewage services.

• A new 5% Natural Gas Severance Tax on a new industry in Pennsylvania, which is creating new jobs and opportunities.

• Place a new 30% tax on cigars and smokeless tobacco.

• Eliminate the 1% Vendor Sales Tax Discount.

• Require the adoption of combined reporting for business taxes.

"To be fair, while the Governor does propose to reduce the Sales Tax, the overall result would be a half a billion dollars in additional taxes," said Sen. Orie.

"With the current FY 2009-10 Budget, Senate Republicans showed that state government can hold the line on spending.  For the first time in forty years, spending was not increased -- while still maintaining essential services," said Sen. Orie.  "My goals for this budget are the same as last year -- hold the line on spending and taxes."

The Senate's review of the budget will formally begin on February 15th with three weeks of hearings conducted by the Senate Appropriations Committee.  The state's current fiscal year ends on June 30th.

CONTACT:

Mike Sarfert
(717) 787-6538