State Rep. Sam Rohrer, R-Berks, made the following comments at a
PACT with PA Press Conference in Harrisburg regarding the move by Gov. Rendell and House Democrats to raise taxes for Pennsylvania families and business owners:
No Tax Increases: In simple terms, this is the most basic and distinctive Sound Budget principle. Ultimately, the adherence to this principle will define the difference between living within our means and respecting those who pay the taxes by spending only what we have OR laying down an additional burden on our already taxpayers and business because we are afraid to bring spending into line.
States all across this nation are grappling with this very principle. Which is better they are asking – reducing spending even though it is difficult OR raise taxes regardless of the burden it places on our people and our economy.
Another question is this: Can we really afford to raise taxes? What will be the impact on our taxpayers – our small businesses- our struggling economy – on jobs? If taxes are raised, can the honestly be called "temporary?" What is the likelihood of any tax being sunsetted? Is an increase in the PIT that would "only" add $15 or$20/ month really that much as the Governor has said? Should we be concerned? These are all great questions and they must be openly discussed, not twisted and spun to try and convince the public that what they know to be poison is really medicine.
Well if we look at history, this legislature hasn't done so well in regard to this principle. In 1991 we were faced with a $1 billion deficit—but instead of cutting back on spending, taxes were raised $3 billion - $ 1 Billion in needed revenue, $2 Billion to “buy” the votes. That $2Billion/yr has resulted in taxpayers losing over $35 Billion dollars. You see raising taxes is VERY expensive.
In fact, this legislature has resorted to raising taxes in every previous recession (1983, 1991, and 2003). Today, we’re facing a $3 billion+ deficit from just this current year with the need to address in this budget an equivalent of around $7Billion. Does anyone think we can afford to raise taxes without absolutely destroying our economy and breaking the backs of our taxpayers? So history doesn't look to good. Now is the time to learn from history, consider the negative impact of the previous tax increases and live within available revenues.
As to negative impact of a broad based PIT or SUT tax - Raising taxes will take more money out of our economy at a time when we can least afford it. A couple of reasons why an increase in either of these taxes is deplorable: The revenue is not predictable since revenues are falling and increase of 1% point for PIT for example really means a 30% increase in PIT. But since people are losing their jobs, being forced to accept 10%-20% reductions in pay, working 4 days instead of 5, etc. no one really knows what an increase of 1% point will generate; Secondly, people are already tapped out. With people’s pensions reduced or wiped out, property taxes climbing and incomes dropping, thousands of families are seeing their savings destroyed and foreclosures staring them in the face. They can NOT afford any more taxes particularly when all other living expenses are increasing. Raising taxes not is not only economically destructive it is the height of insensitivity and simple in my opinion, immoral.
Just a couple of facts: Fact 1: Tax Freedom Day, or the day where Americans stop working to pay taxes and start working for themselves, fell on April 13th. Pennsylvanians work a full 103 days, or three and a half months, to pay federal, state and income taxes. During 2009, you and I will pay more in taxes than we spend on food, clothing, and housing combined.
Fact 2: Pennsylvanians in particular shoulder a heavy burden: with the 11th high state and local tax burden in the country, Pennsylvanians pay on average $13,000 PER PERSON (not wage-earner) in taxes. In 2008-2009, our Pennsylvania state and local governments spent $10,000 for every man, woman, and child.
Fact 3: Raising the PIT as the Governor wants to do will destroy jobs: According to the PA State Tax Analysis Modeling Program, or PA-STAMP, a 1% increase in personal income tax would result in a net loss of 47,633 jobs next year.
Can we in good conscience ask our citizens to sacrifice more and more to satisfy the state's growing appetite. Let's take a page from their book, acknowledge the difficulties that our citizens are facing even today, and resolve to live within our means.
State Rep. Sam Rohrer, R-Berks, made the following comments at a PACT with PA Press Conference in Harrisburg regarding the move by Gov. Rendell and House Democrats to raise taxes for Pennsylvania families and business owners:
