Pennsylvania Considers Tax Hikes

An article by the AP on PhillyBurgs.com posits that, although no consensus has emerged just yet, the Pennsylvania legislature will have to consider tax hikes in the coming year.

"At that point, a newly elected governor and Legislature may be willing to raise taxes, since they'll have a longer lead time before the next election. They may have no choice, especially after draining reserves and cutting spending to wipe out a multibillion-dollar shortfall last year."

The current problem, however, seems to be that the state and Governor have spent taxpayer money (and federal grants) as if the good times would never end.

"...he proposed pooling money from several new sources to help meet a projected $5.6 billion gap in 2011 and 2012 resulting from spiraling public pension costs and the expiration of federal stimulus budget aid."

To fix the looming, self-created budget issues, of course the best an unimaginative politician, accustomed to dishing out favors at taxpayer expense, could to do is to attempt to raise taxes.

"Rendell would lower the rate to 4 percent from 6 percent, but would eliminate exemptions _ an idea that some call a tax increase _ on transactions on 74 different goods and services, including lawyers' fees, electric bills and personal hygiene products."

With Governor Rendell leaving office within the year, Pennsylvanians would do well to install a new governor that believes in scouring budget items to bring spending in-line with current economic reality, and one that opposes new taxes.