What is Wrong with PA Senate GOP?

Last week Sen. Chuck McIlhinney released his liquor "privatization" plan. If it were the 1950’s his plan would have been considered revolutionary; in the twenty-first century, not so much.

Unfortunately, the disappointment does not stop there.

Sadly, it appears that Senate Republicans will be putting legislation up for a vote that will enact the ObamaCare expansion of the already bloated Medicaid program. Evidently some members of the Senate Republican caucus believe that this money from the federal government is somehow free and expanding Medicaid will not result in more government spending down the road. According to an analysis by Pennsylvania’s Department of Public Welfare, expanding Medicaid would cost Pennsylvania taxpayers nearly a billion dollars by 2016.

Rounding out the bad ideas emanating from the Senate, is the suggestion by Sen. Jake Corman (R-Centre, Juniata, Mifflin, Perry and Union Counties) that the state keep a tax on businesses that is slated to be phased out at the end of the year. Pennsylvania, unlike every other state in the country, collects a tax on business income and business assets. Not only does this result in double taxation, it also discourages businesses from expanding or upgrading equipment. The tax, known as the Corporate Stock and Franchise Tax (CSFT), was supposed to be phased out entirely by 2008. The tax has survived this long because of two stays of execution. One granted by Gov. Schweiker (R) and the other by Gov. Rendell (D).

Freezing the phase out of the CSFT essentially means that the word of the Pennsylvania government is worthless regarding tax rates. Absent interference the tax goes away. Taking action to keep it around is the same as a tax hike.
Why would Sen. Corman wants to save this anti-job creation tax from the trash pile? According to an article in the Philadelphia Inquirer:

"Senate Appropriations Chairman Jake Corman (R., Centre) said he would be willing to consider a freeze in a planned business-tax phaseout – for the so-called capital stock and franchise tax – to free dollars that could be redirected to public schools."

The public school in question is the Philadelphia School District, which finds itself with a $300 million "shortfall" to meet its budget for the next school year. Rather than insist that the Philadelphia teachers’ union make concessions or that the city actually do something to collect its delinquent property taxes, Sen. Corman seems all too willing to continue double taxing businesses and keeping Pennsylvania uncompetitive.

If you find Sen. Corman’s proposal as awful as we do, please send him an email and let him know. Please feel free to contact the other members of the Senate Appropriations Committee. Let them know you want Philadelphia to do its fair share before sending anymore state tax dollars.

We would strongly encourage members of the Senate Republican Caucus to consider how voting to expand Medicaid and hike business taxes would be received by voters in the next primary election.

Citizens Alliance of Pennsylvania (CAP) is a non-profit organization founded to raise the standard of living of all Pennsylvanians by restoring limited government, economic freedom, and personal responsibility. By empowering the Commonwealth’s employers and taxpayers to break state government’s "Iron Triangle" of career politicians, bureaucrats, and Big Government lobbyists, this restoration will occur and Pennsylvania will prosper.

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What the Hell is Wrong with PA’s Senate Republicans?

June 24, 2013:

Last week Sen. Chuck McIlhinney released his liquor "privatization" plan. If it were the 1950’s his plan would have been considered revolutionary; in the twenty-first century, not so much.

Unfortunately, the disappointment does not stop there.

Sadly, it appears that Senate Republicans will be putting legislation up for a vote that will enact the ObamaCare expansion of the already bloated Medicaid program. Evidently some members of the Senate Republican caucus believe that this money from the federal government is somehow free and expanding Medicaid will not result in more government spending down the road. According to an analysis by Pennsylvania’s Department of Public Welfare, expanding Medicaid would cost Pennsylvania taxpayers nearly a billion dollars by 2016.

Rounding out the bad ideas emanating from the Senate, is the suggestion by Sen. Jake Corman (R-Centre, Juniata, Mifflin, Perry and Union Counties) that the state keep a tax on businesses that is slated to be phased out at the end of the year. Pennsylvania, unlike every other state in the country, collects a tax on business income and business assets. Not only does this result in double taxation, it also discourages businesses from expanding or upgrading equipment. The tax, known as the Corporate Stock and Franchise Tax (CSFT), was supposed to be phased out entirely by 2008. The tax has survived this long because of two stays of execution. One granted by Gov. Schweiker (R) and the other by Gov. Rendell (D).

Freezing the phase out of the CSFT essentially means that the word of the Pennsylvania government is worthless regarding tax rates. Absent interference the tax goes away. Taking action to keep it around is the same as a tax hike.
Why would Sen. Corman wants to save this anti-job creation tax from the trash pile? According to an article in the Philadelphia Inquirer:

"Senate Appropriations Chairman Jake Corman (R., Centre) said he would be willing to consider a freeze in a planned business-tax phaseout – for the so-called capital stock and franchise tax – to free dollars that could be redirected to public schools."

The public school in question is the Philadelphia School District, which finds itself with a $300 million "shortfall" to meet its budget for the next school year. Rather than insist that the Philadelphia teachers’ union make concessions or that the city actually do something to collect its delinquent property taxes, Sen. Corman seems all too willing to continue double taxing businesses and keeping Pennsylvania uncompetitive.

If you find Sen. Corman’s proposal as awful as we do, please send him an email and let him know. Please feel free to contact the other members of the Senate Appropriations Committee. Let them know you want Philadelphia to do its fair share before sending anymore state tax dollars.

We would strongly encourage members of the Senate Republican Caucus to consider how voting to expand Medicaid and hike business taxes would be received by voters in the next primary election.

Citizens Alliance of Pennsylvania (CAP) is a non-profit organization founded to raise the standard of living of all Pennsylvanians by restoring limited government, economic freedom, and personal responsibility. By empowering the Commonwealth’s employers and taxpayers to break state government’s "Iron Triangle" of career politicians, bureaucrats, and Big Government lobbyists, this restoration will occur and Pennsylvania will prosper.