Senator McIlhinney Urges Prudent Use of Taxpayer Dollars

HARRISBURG – Senator Chuck McIlhinney (R-Bucks and Montgomery Counties) urged the General Assembly to contain state spending and closely examine the tax increases proposed by the Governor in his annual Budget Address today.

The Governor's budget proposal includes more than $2.5 billion in annual tax increases, including:

An increase in Pennsylvania's sales tax, from 6 percent to 7 percent statewide. The sales tax increase would cost Pennsylvania consumers an additional $1.24 billion in FY 07-08.
A new mass transit/oil tax is expected to cost oil companies $760 million, a charge that would be borne by consumers on heating oil bills and at the gas pump.
An energy use tax, based on electric usage, would cost consumers $75 million.
A $2.75 per-ton municipal waste disposal fee would take an additional $61.4 million out of Pennsylvanians' pocketbooks.
An additional 10 cents-per pack tax on cigarettes is projected to cost smokers $61 million annually.
New taxes on smokeless tobacco, loose tobacco, and cigars would cost consumers $30.3 million annually.

The Governor outlined a number of budget priorities that would require increased state spending, including increased funding for transportation and mass transit, providing more affordable health care coverage for uninsured adults, promoting the use of renewable alternative fuels, and additional funding for the Department of Education's Accountability Block Grant Program.

"The Governor offered a number of worthy goals in his budget address, but we need to take a closer look at state spending to ensure we don't harm the economy," McIlhinney said. "We don't want to place an unreasonable tax burden on Pennsylvania families and businesses and risk losing good-paying jobs."

CONTACT:

Heather Cevasco
(717)787-7305