The sales tax increase proposed by Pennsylvania ’s Liberal Democratic Governor
Tom Wolfe that I posted about earlier this month as part of a proposed deal to
balance the Commonwealth’s 2016 budget has been turned down by the negotiators
for the Republican-majority General Assembly because of opposition from the
public, including from this blog, and fellow conservative legislators.
See also my post from March of 2013, The
Pennsylvania Houses Passes Liquor Privatization, http://williamcinfici.blogspot.com/2013/03/the-pennsylvania-house-passes-liquor.html. The new fiscal year began July 1 without a budget, meaning the Commonwealth lacks sufficient authority to spend money, as Wolfe vetoed a balanced budget approved by the legislature that did not raise taxes and later even vetoed a stopgap measure to continue funding at current levels, which has caused a fiscal crisis for the state, as well as for counties, school districts and municipalities. The legislators had already
declined Wolfe’s proposed income tax increase and imposition of an additional tax
on the natural gas industry. He did partially accept their key proposal for pension reform. Negotiations continue to reach a budget deal.
Meanwhile,
the Pennsylvania Senate voted 24-24 for the elimination of school real estate
taxes, with liberal Democratic Lieutenant Governor Michael Stack casting a
tie-breaking vote against the bill. The
vote was the closest the Senate has ever come to the total elimination of the
onerous taxes. The revenue-neutral
bipartisan measure would have exchanged school real estate taxes for higher
sales and income taxes. Unlike the
proposed budget, however, it would not have resulted in a net tax increase for
the average homeowner.
Wolfe signed into law a bill approved by the GOP-led legislature along mostly party
lines that eliminates the exemption from prosecution for harassment, stalking
and the like for labor union members during labor disputes.
The state House
of Representatives again has passed a bill to end the Commonwealth’s wholesale
and retail monopoly on alcohol, but Wolfe still supports the state’s socialist
system and its Prohibition vestiges that were intended to keep the purchase of
alcohol as difficult as possible, even though privatization would help balance
this year’s budget with the sale of licenses, as well as future budgets through license renewals and the continued collection of taxes on wine and liquor, which
would likely increase if privatization results in better selection and thus less
revenue loss to border states, which turns many thousands of otherwise
law-abiding Pennsylvanians, sometimes unwittingly, into bootleggers. Privatization would also end the
Commonwealth’s conflict of interest in selling alcohol while regaling its use.