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FOR IMMEDIATE RELEASE
February 6, 2007
CONTACT:
Lee Derr
717-787-6538
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Senator Orie Says Rendell's Proposed Budget Would Result in A $2.5 Billion Tax Increase

Governor Rendell's budget for Fiscal Year 2007-08 includes numerous proposed tax increases – including a one percent hike in Pennsylvania's Sales and Use Tax – totaling more than $2.5 billion on an annual basis, according to Senator Majority Whip Jane Orie.  Further, a new tax projected to cost employers $60 million FY 07-08 would cost nearly $2 billion annually after four years. 

Orie said the Governor's budget would raise 7 different taxes, and could hurt consumers and job creators.

"The Governor's proposed budget includes items that are important to residents of the my district.  Property tax relief, access to affordable health care and funding for our schools, roads and bridges are all issues that need to be addressed," she said.  "However, I don't believe the Governor's plan for more taxes, more spending, and more borrowing is the way to accomplish these goals and I think taxpayers are concerned."

Some tax hikes in the proposed budget include: 

• The Governor requested a one percent increase in Pennsylvania's sales tax, which is projected to cost Pennsylvania consumers as additional $1.24 billion in FY 07-08.  In Pittsburgh, the sales tax would rise from 7 to 8 percent.
• A new $760 million tax on oil companies to pay for mass transit in Philadelphia and Pittsburgh, a tax that will eventually be borne by consumers on heating oil bills and at the gas pump.
• An energy use tax, based on electric usage, will cost consumers $75 million, while a $2.75 per-ton municipal waste disposal fee will take an additional $61.4 million out of Pennsylvanians' pocketbooks.
• The Governor also wants tobacco users to pay more.  An additional 10 cents-per pack tax on cigarettes is projects to cost smokers $61 million annually, while new taxes on smokeless tobacco, loose tobacco, and cigars is estimated to cost consumers $30.3 million annually.

As she prepares for the annual budget hearings, which begin on February 26, Senator Orie said she will be examining the Governor's proposal very closely.

"I'm willing to listen and work in a bi-partisan manner for a good budget, but what I hear continually from the people I represent is that they are already taxed too much.  We have to live within our means." Orie said.  "Fiscal responsibility is the top priority.  For me, that means controlling current spending before we begin any discussion about new programs or raising taxes..."