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HARRISBURG, PA -
Governor Ed Rendell is proposing a temporary increase in the state's personal income tax. The tax would generate $1.5 billion a year for the next three years. Rendell says the hike is necessary to make up for a $3.2 billion dollar budget deficit.
"The citizens of Pennsylvania didn't cause this problem, a bunch of greedy Wall Street millionaires did," said Governor Ed Rendell.
The governor's proposal would raise the personal income tax rate from 3.07 to 3.57. He says the increase, along with major spending cuts, would bridge the $3.2 billion budget gap.
"I'm struggling now as it is, so if taxes were to go up, even if it is $5 a week, that is $5 I could use for my kids," said Robert Sheriff, taxpayer.
"Why burden individuals who are already having a difficult time with today's economy," said Noreen Freeland, taxpayer.
The governor's plan will face a tough fight in the Senate, where Republicans are pitching more cuts in spending.
"I find it ironic that he blames this all on Wall Street but he is going to punish the hard working people of Pennsylvania and the small businesses of Pennsylvania," said Senator Jane Orie, (R) Allegheny and Butler Counties.
"We have a real revenue shortfall and we just have a fundamental disagreement on how to deal with that, our approach has been to tailor our spending plan to the revenues we have available," said Senator Dominic Pileggi, Delaware and Chester Counties.
The Senate's plan includes major cuts in economic development programs and education.
Rendell says 4 out of 10 households would not be hit by the increase because the state does not tax retirement income and families making $32,000 a year or less.
The state budget deadline is June 30th. Many lawmakers do not expect the plan to be passed on time.
"The citizens of Pennsylvania didn't cause this problem, a bunch of greedy Wall Street millionaires did," said Governor Ed Rendell.
The governor's proposal would raise the personal income tax rate from 3.07 to 3.57. He says the increase, along with major spending cuts, would bridge the $3.2 billion budget gap.
"I'm struggling now as it is, so if taxes were to go up, even if it is $5 a week, that is $5 I could use for my kids," said Robert Sheriff, taxpayer.
"Why burden individuals who are already having a difficult time with today's economy," said Noreen Freeland, taxpayer.
The governor's plan will face a tough fight in the Senate, where Republicans are pitching more cuts in spending.
"I find it ironic that he blames this all on Wall Street but he is going to punish the hard working people of Pennsylvania and the small businesses of Pennsylvania," said Senator Jane Orie, (R) Allegheny and Butler Counties.
"We have a real revenue shortfall and we just have a fundamental disagreement on how to deal with that, our approach has been to tailor our spending plan to the revenues we have available," said Senator Dominic Pileggi, Delaware and Chester Counties.
The Senate's plan includes major cuts in economic development programs and education.
Rendell says 4 out of 10 households would not be hit by the increase because the state does not tax retirement income and families making $32,000 a year or less.
The state budget deadline is June 30th. Many lawmakers do not expect the plan to be passed on time.
