PA Gov pushing for statewide income tax hike

Pennsylvania’s lawmakers are wrestling with a huge budget deficit and the idea of a tax increase has been held as an option of last resort. Now, Governor Ed Rendell is floating the idea of a tax hike to balance the state budget.

Pennsylvania’s lawmakers are wrestling with a huge budget deficit and the idea of a tax increase has been held as an option of last resort. Now, Governor Ed Rendell is floating the idea of a tax hike to balance the state budget.

Listen:
[audio: 090608tmtax.mp3]

Governor Rendell says a temporary increase in the state income tax could be used to deal with Pennsylvania’s three billion dollar budget deficit.

Rendell: The question is if we got by in this  year what would happen in the following fiscal year and if that is going to be chaos we have to do something to correct it right now.

The idea will be a tough sell. Montgomery County State Representative Bob Mensch says its a spending problem.

Mensch: We have grown this government by 40 percent in six years, I’ve asked people in my district have you noticed a 40 percent increase in services, the answer is no, they haven’t seen a four-percent increase in services.

The proposed tax increase would end in three years. Other temporary tax increases emerged from the state’s economic crises in 1991 and 1983, but the rates didn’t necessarily snap back to pre-crisis levels.