Rendell calls tax increase “inevitable”

    Pennsylvania Governor Ed Rendell is sticking to his argument that a tax increase is “inevitable” in the face of a 3.2 billion dollar revenue deficit.

    Pennsylvania Governor Ed Rendell is sticking to his argument that a tax increase is “inevitable” in the face of a 3.2 billion dollar revenue deficit.

    Listen:

    [audio: 090618sdtaxes.mp3]

    Governor Rendell says a look at the numbers makes it clear there’s no way to reach a balanced budget without a major revenue increase like the 16-percent income tax hike he’s calling for. Noting that even the spending plan passed by Senate Republicans last month was above revenue figures, the governor says Pennsylvania residents will understand the need for the hike.

    Rendell: People get ticked off. But then when they go back to their daily lives, and they see what they lose on a weekly or monthly basis, their anger abates. And they go onto more important issues like the education of their children, or businesses opening up and new job opportunities being created.

    Lawmakers from both parties are now admitting there’s no way a deal can be reached before the June 30th budget deadline, but Rendell says he’s not subscribing to that view yet. Republicans disagree with the argument voters will accept higher tax rates. House GOP spokesman Steve Miskin says an increased income tax means “hundreds of dollars” will be taken out of the average Pennsylvania resident’s budget.

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