Rep. Reichley: Rendell budget passed by House Dems is a 'sham'
Rep. Doug Reichley (R-Berks/Lehigh), vice chairman of the House Appropriations Committee, released the following statement after Tuesday's passage of House Bill 2279, Gov. Rendell's latest $29 billion red-ink budget proposal:
"It is no coincidence that the budget bill that passed today was voted on exactly 100 days before the June 30 deadline. Unfortunately, the governor and his allies would prefer to pass a bill that does not bear any reality to the financial difficulties faced by many families, businesses and organizations rather than to pass a fiscally responsible spending plan for Pennsylvania. The governor's proposal, passed with unanimous support from House Democrats, spends far more than the state is taking in, exceeding tax revenue by billions of dollars, and relying on deferred payments into state employee and teacher pension funds. Such reckless spending only compounds the problem we are currently facing.
"The governor's budget also unwisely uses a whistling through the graveyard approach by basing his spending plan on receiving $850 million in federal aid for Medical Assistance, the state-administered health care plan for the poor, elderly, and disabled in Pennsylvania. The problem is there is no telling if and when the state will receive those federal funds. The governor and his supporters in the House Democratic Caucus should have learned after seven years of missing budget deadlines that you do not achieve a balanced budget by crossing your collective fingers and wishing for federal aid.
"We need to act now to protect against tax increases in the future. We need to act now with further decreases in state spending. We need to fix foreseeable problems with the state employees and public school employees retirement systems before we reach the tipping point.
"Clearly, the bill that passed today is not the bill that will become law. It's a sham, designed to provide taxpayers with the illusion that the budget process has started in earnest. This is not a real, negotiated, fiscally sustainable budget. We will all end up paying for it, well beyond when the governor leaves office."
Rep. Quigley: Democrats' Budget Built on a House of Cards
State Rep. Tom Quigley (R-Montgomery) issued the following statement on the passage of House Bill 2279, which is Gov. Ed Rendell's proposed budget, minus the taxes Rendell wants to pay for the $29 billion spending plan:
"By relying on yet-to-be-approved federal funds, this legislation builds our budget on a house of cards. We should not allocate $850 million in federal money we only hope to get, but we should focus on the resources we know we have. This budget is the epitome of writing a check the taxpayers might not be able to cash, and it is irresponsible.
"For the past two budget cycles, Pennsylvania outspent its means. We are expected to end the year with a more than half-billion dollar deficit, which is a clear sign that this is not the time to increase spending. This budget calls for a $1.2 billion, or 4 percent, spending increase. Pennsylvania’s families continue to scale back their personal budgets, and this proposed state spending growth is not reflective of our current economy.
"I will continue putting my efforts into examining ways to make state government more efficient, and I am hopeful the Senate will amend this bill with a more realistic spending goal that will shield Pennsylvania families from future tax increases. We need to adopt a budget that is practical and sustainable."
The budget bill passed the House by a vote of 107-89, mostly along party lines, and now goes to the Senate for consideration. Since Republicans hold a 30-20 majority in the Senate, they will likely discard the Rendell/Democratic budget and craft their own spending plan.
Tuesday's House vote was essentially a publicity stunt by House Democrats. March 23 marks 100 days before the constitutional deadline to approve the budget for the 2010-11 fiscal year. You'll recall that the Legislature was 100 days late with in approving the 2009-10 budget.
Rohrer blasts House Dems for 'fiscally irresponsible' budget
Pennsylvania has spent $4 billion more than it has taken in over the past two years. Unemployment is at the highest level in two decades. The state's business climate continues to sink. Former and current state legislators are being hauled into court on corruption charges.
The "funny money" Barack Obama has sent to states as part of his "stimulus" package will dry up in two years. So what do the Democrats who control the Pennsylvania House do to show they're serious about the state's fiscal mess? They approved a $29 billion budget that is $1.2 billion higher than the current red-ink spending plan. And they have no way of paying for it. The budget the House passed along party-line votes Tuesday does not include any of the tax increases Gov. Ed Rendell proposed as part of the $29 billion budget.
So what is the most expensive state legislature in the country up to? State Rep. Sam Rohrer, an 18-year veteran of the House who is leaving to run for governor, has some thoughts about the state's fiscal woes:
"The current administration has led Pennsylvania down the path to fiscal insolvency," Rohrer said. "The budget approved today by the House is simply a continuation of the fiscally irresponsible practices of the last eight years. It spends too much, disregards financial reality and ignores the wishes of Pennsylvanians."
The budget bill approved today by the House was based on Gov. Ed Rendell's proposal outlined in his February budget address before the General Assembly. The bill calls for a $1.2 billion increase in state spending, which would drive up total state expenditures to in excess of $29 billion.
While the proposal calls for more than $29 billion in state spending, it anticipates only $26.2 billion in state revenues. Rohrer, who serves as the Republican chairman of the House Finance Committee, says the administration's revenue projections are far too optimistic.
"The budget approved today by the House is based on overstated revenues and underestimated costs," Rohrer said. "The state is already facing a half-billion dollar budget deficit for the current year. The administration and House Democrat leaders want to toss another $1.2 billion in spending on top of that through this budget proposal. Realistically, we are facing a $4 billion to $5 billion structural deficit, because that's how much state spending is outpacing our revenues."
Rohrer says revenues are likely to come in close to where they were in 2004 and state spending should be brought in line with where it was back then.
"The current administration cuts a dollar of spending with its left hand and then spends it somewhere else with its right hand," Rohrer said. "That is why state spending has increased by more than $8.6 billion since the administration took office. We need to make real cuts that root out waste, fraud and abuse from state spending initiatives."
Rohrer also argued that by passing the governor's budget proposal, House Democrats were ignoring the will of Pennsylvanians. In a recent Quinnipiac University poll, nearly half (49 percent) of respondents said the governor's budget proposal increases spending "too much." By comparison, only 6 percent of respondents said the governor's spending increase proposal was "not enough."
"Pennsylvanians are tired of lawmakers in Washington, D.C., and Harrisburg who refuse to listen to the people," Rohrer said. "This budget is a slap in the face to the taxpayers who foot the bills around here. They continue to speak out, but their voice was disregarded by the majority in the House of Representatives today."
The budget bill now heads to the Senate, where Republicans hold a 30-20 majority, for consideration.
Pennsylvania's Tax Delinquent List Grows: $9.4M Owed By Businesses
With the addition of 41 new delinquent taxpayers to the Pennsylvania Department of Revenue's tax delinquent list, a total of 275 businesses now owe the state more than $9.4 million, acting Revenue Secretary C. Daniel Hassell said today.
There really are two Americas, but the divide is not between rich and poor, black and white, Democrat and Republican.
The gap is between the growing governing elite and the working class paying taxes to support the permanent political class.
From a thought-provoking column by Dr. Mark W. Hendrickson, adjunct faculty member, economist, and contributing scholar with The Center for Vision & Values at Grove City College:
The truly revolutionary American idea of government as the servant of the people may be fading away. Many of today’s so-called “civil servants” are a protected, privileged class. While Middle America struggles through a difficult recession, a lot of government employees have lived on the gravy train.
Here are some facts to buttress that assertion:
Since the recession began in 2008, a period during which approximately eight million private-sector workers lost their jobs and millions more saw their income decline, the number of federal employees is increasing at a 7 percent per-year rate and their income is holding up quite nicely. According to the Cato Institute, the average federal worker’s pay and benefits now approximates $120,000 per year, or roughly double the compensation of the average private-sector employee. Factor out the lavish government fringe benefits and look at salary only, and the civil servant is still far ahead: $71,197 vs. $49,935.
During this recession, the percentage of federal employees earning annual base salaries above $100,000 increased from 14 to 19 percent. The number of Defense Department employees being paid more than $150,000 per year increased from 1,868 to 10,100. Before, the Department of Transportation had one employee with a salary above $170,000, but now has 1,690.
Read the full column by The Center for Vision & Values at Grove City College Web site.
If the Obama Administration is starting to feel like the movie, "Groundhog Day," you're not far off. After wasting an entire year pushing a government takeover of health care that the majority of Americans oppose, Barack Obama is still peddling the same snake oil.
From Investor's Business Daily:
Health Reform: The linchpin of ObamaCare 2.0 is that 31 million uninsured will be covered at little added cost. But in fact, White House estimates for low costs are based on little more than accounting tricks.
The president's plan "puts our budget and economy on a more stable path by reducing the deficit by $100 billion over the next 10 years — and about $1 trillion over the second decade — by cutting government overspending and reining in waste, fraud and abuse," the White House says on its Web site.
Sound too good to be true? It is.
None of the numbers can be believed. The plan is a result of blatantly dishonest accounting for the real costs of the program, while grossly overstating its benefits. Americans should know the actual 10-year cost is closer to $2 trillion over 10 years, not the $950 billion claimed, when all the actual costs are toted up.
How can there be such a wide gap? Mainly because the president's plan doesn't provide benefits until the second half of the first decade. So it pretends that it will "only" cost $950 billion. But once the program kicks in, the full 10-year cost of benefits will be included — at a real current cost of $2 trillion or more.
Or, as columnist Charles Krauthammer, himself a trained physician, told Fox News' Bill O'Reilly: "It's a trick. The way the Democrats got under (the spending limit imposed by Obama) was by making 98% of the expenditures, the benefits that you and I would get under the bill, occur in the second half of the decade."
Taxpayer group issues report card on Congressional spending
Although more lawmakers joined the ranks of "Taxpayers' Friends" for their voting records in 2009, the vast legion of "Big Spenders" who opted to grow government remained overwhelmingly large, according to the National Taxpayers Union's 31st annual Rating of Congress.
The unique scorecard utilizes every roll call vote affecting fiscal policy – 333 House and 227 Senate votes taken last year.
Here's how Pennsylvania members of Congress did on the newest ranking issued by the National Taxpayers Union. (Can't help noticing all the "F" grades next to Democrats.)
U.S. Senate Bob Casey Jr. - F Arlen Specter - D
U.S. House Jason Altmire - D Bob Brady - F Chris Carney - D Kathy Dahlkemper - F Charlie Dent - C+ Mike Doyle - F Chakah Fattah - F Jim Gerlach - C+ Tim Holden - F Paul Kanjorski - F Pat Murphy - F Tim Murphy - C John Murtha - DECEASED Joe Pitts - B+ Todd Platts - C+ Alyson Schwartz - F Joe Sestak - F Bud Shuster - B Glenn Thompson - B
If you're looking for an objective look at spending in Pennsylvania, The Commonwealth Foundation is your best source of information.
The Commonwealth Foundation has released two new analyses of the Pennsylvania State Budget.
Pennsylvania State Budget Overview
* Think the state budget is only $29 billion? You might be surprised to learn that the total Pennsylvania operating budget is $66 billion, or $5,300 for every man, woman, and child.
* Think that the state government has a balanced budget, and therefore doesn't borrow like the federal government? Wrong! Pennsylvania state debt is $42 billion, an increase of 78% since Gov. Rendell took office. The state budget now includes over $1 billion on debt payments alone.
* Have you heard that Gov. Rendell has slashed spending to the bone? In reality, he has increased the General Fund budget by 45%, or $9 billion, since taking office, more than double the rate of inflation.
* Think public schools and welfare are underfunded? Under Gov. Rendell, state spending on K-12 education increased 46%, and on Public Welfare by 68%
Rep. Fattah Proposes New Tax To Pay Down National Debt
What's the Democrats solution to paying down the national debt that they've helped create by spending more money than the government takes in? Raise taxes, of course.
Congressman Chaka Fattah (D-PA) today introduced legislation that calls for a penny on every dollar on transactions in the United States economy to be directed to eliminating America's national debt.
I guess it never occurred to Fattah or any other Democrat to just stop spending or cut taxes to jump-start the economy.
Accountants: Rendell Sales Tax Expansion Would Hurt Many Businesses
Gov. Ed Rendell's recent budget proposal to remove the exemption of the state sales tax for professional services would have damaging long-term effects on Pennsylvania business growth, says the Pennsylvania Institute of Certified Public Accountants
From a press release issued today by the PICPA:
While the PICPA recognizes the state's need for revenue to support critical state operations and programs, expanding the sales tax to include services - such as those provided by CPAs, attorneys, advertisers, and public relations - will be a quick fix that ultimately hurts Pennsylvania's long-term growth prospects.
PICPA, in several testimonies to the Pennsylvania House and Senate, has strongly encouraged a simplification of the current state tax code to attract more business and thus more revenue. Removing the sales tax exemption on services will create more confusion in the marketplace and could also be a strong deterrent for business expansion and sustainability. The negative effects of this tax expansion include the following:
-- Compliance difficulties and increased administrative burden to the thousands of small businesses in Pennsylvania.
-- Pennsylvania would be at a competitive disadvantage, as only three other states tax professional services, and none surround the Commonwealth.
-- Further expansion of the sales tax will not make the state any more business-friendly as Pennsylvania already has one of the highest business tax rates.
Pennsylvania CPAs established the "Guiding Principles of Good Tax Policy" pamphlet, which can be viewed on PICPA's Web site at www.picpa.org/taxpolicy
The Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPAs who work in public accounting, industry, government and education.
For more information, visit the group's Web site at www.picpa.org
Pity the poor smoker. Banished from public buildings and most workplace, a new national polls finds 67 percent of voters support additional taxes on tobacco to pay for health programs.
But what happens when the price of cigarettes becomes so prohibitive that people stop smoking ... and paying taxes on tobacco?
Rendell proposes expansion of state sales tax to cover years of deficit spending
It was classic Ed Rendell today as the governor delivered his eighth -- and final -- budget to the Pennsylvania Legislature. Having run out of things to tax, Rendell proposed expanding the state sales tax to cover more items.
Rendell and his lockstep Democrats in the Legislature have repeatedly opposed expansion of the sales tax to cover services when it was attached to a plan to eliminate property taxes. That's what Republican state Rep. Sam Rohrer has been pushing for years.
But now that Rendell has run out of opportunities to raise other taxes, he needs the expanded sales tax to fund his $29 billion spending plan and pay for years of deficit spending.
Despite running up huge deficits in the past two budgets, Rendell wants to increase state spending by $1.1 billion for the 2010-11 fiscal year, which begins July 1.
Rendell wants to pay for the spending by using $1.1 billion in federal stimulus funds, which may or may not be approved by Congress. (Imagine what will happen to "stimulus" handouts when Republicans take back control of Congress in November.)
And Rendell is leaving with a final "up yours" to the taxpayers of Pennsylvania.
Having presided over a massive expansion of state spending over the past eight years -- $9 billion and counting -- Rendell warned lawmakers that Pennsylvania is facing a "fiscal tsunami" -- a potential $5.6 billion deficit from the 2011 expiration of federal stimulus money and the ticking time bomb of public pension obligations.
It's basic economics. You can't spend what you don't have and Rendell (with the Legislature as his accomplice) has been spending money the state doesn't have. The chickens will come home to roost. Unfortunately for Pennsylvania taxpayers, Rendell will have flown the coop.
Rendell wants to reduce the state sales tax rate from 6 percent to 4 percent, but expand it to more than 70 services currently exempt (lawyer and accountant fees, dry cleaning, for example) and items such as firewood, candy, gum, bottled water, magazinies and "personal hygiene" products. (Groceries, clothing and prescription drugs would remain exempt from the sales tax under Rendell's plan).
Rep. Rohrer has proposed a similar plan, but it would lead to the elimination of the state's onerous property tax. Taxpayers would come out ahead under Rohrer's plan. Rendell simply wants more money from taxpayers to cover up his deficit spending.
The state finished with a $3.25 billion deficit for the 2008-09 fiscal year and is looking at a minimum $500 million deficit for the 2009-10 fiscal year.
In addition to expanding the sales tax, Rendell wants to extend the tobacco tax to include cigars and smokeless tobacco products and enact a new severance tax on natural gas extraction.
Will any of these taxes pass? Rendell is not running for re-election. He doesn't care. But all 203 members of the state House and 25 of the 50 members of the state Senate face the voters in 2010. How many of them are going to vote for one of the largest tax increases in Pennsylvania history?
Barack Obama and Congressional Democrats are leading us over a cliff.
From Investor's Business Daily:
The proposed budget over the next decade would rack up $45.8 trillion in new spending, $9.1 trillion in deficits and more than $2 trillion in higher taxes on Americans. It will double the national debt held by the public to over $18 trillion, while raising taxes on 3.2 million small businesses and upper-income taxpayers — the very people the administration is counting on to pull us out of recession.
Based on recent estimates, the expected deficits are growing, not shrinking. Last year's proposed budget contained just $7.1 trillion in red ink over 10 years. This year, that's ballooned to $9.1 trillion. Higher spending is responsible for 90% of the increase. Total spending over the decade is expected to swell 54%.
During the decade, spending will average about 24% of GDP — compared with the 20% of GDP that has prevailed since shortly after World War II. This represents a permanent 20% increase in the real size of government — which explains why the number of federal employees has reached 2.15 million, the most ever.
If spending isn't brought under control soon, the U.S. will suffer the fate of all fiscally irresponsible nations — slower economic growth, lower standards of living, shorter lives.
PA Business Community Says 'No State Budget Groundhog Day'
From the Pennsylvania Competitive Council:
More than 30 business organizations representing nearly 5 million non-farm, non-government private sector jobs assembled in the state capitol rotunda on Groundhog Day to say, "We don't want to wake up morning after morning to the same news in 2010!" The Groundhog Day reference to the Bill Murray movie that made Punxsutawney world famous was used by business leaders to remind lawmakers and Governor Rendell that another late budget with increased spending and higher taxes would not be acceptable to them.
"In 2009, we suffered a protracted budget process that went 101 days beyond the deadline. The gap between spending and expected revenues was filled with new and additional taxes that will cost the Pennsylvania business community about $2 billion over the next five years before modest – but much needed – tax reforms really take effect," said Pennsylvania Business Council President & CEO David W. Patti.
Now that Obamacare is on life support, it's time for voters to demand Congress pull the plug on the cap-and-trade energy tax.
The National Federation of Independent Business today released 16 state-based surveys that show opposition to the Democrats' proposed energy tax. The majority of voters polled say tax-and-trade will cost more U.S. jobs.
Half-way through the 2009-10 fiscal year, Pennsylvania has recorded a $254.2 million budget deficit.
While the red ink isn't flowing as much as it did for the 2008-09 fiscal year, in which the state ran up a $3.25 billion deficit, it appears Gov. Ed Rendell and the Pennsylvania Legislature will be dealing with another deficit when the current fiscal year ends on June 30.
You might be wondering how Gov. Rendell and the Legislature manage to circumvent the Pennsylvania Constitution, which mandates a balanced budget (Article VIII, Section 13 (a) Operating budget appropriations made by the General Assembly shall not exceed the actual and estimated revenues and surplus available in the same fiscal year.) It appears the Constitution is optional with the current leadership in Harrisburg.
The Pennsylvania Department of Revenue on Monday released the December tax collection numbers, showing a deficit for the sixth consecutive month of the current fiscal year.
Pennsylvania collected $2 billion in General Fund revenue in December, which was $37.2 million, or 1.8 percent, less than anticipated, according to Acting Secretary of Revenue C. Daniel Hassell.
Fiscal year-to-date General Fund collections total $12.4 billion, which is $254.2 million, or 2 percent, below estimate, Hassell said.
More from the December revenue report
Sales tax receipts totaled $627.3 million for December, $39.1 million below estimate. Year-to-date sales tax collections total $4 billion, which is $181.1 million, or 4.4 percent, less than anticipated. Personal income tax (PIT) revenue in December was $707.3 million, $6.2 million below estimate. This brings year-to-date PIT collections to $4.3 billion, which is $111.7 million, or 2.5 percent, below estimate.
December corporation tax revenue of $377.1 million was $28.7 million below estimate. Year-to-date corporation tax collections total $1.1 billion, which is $900,000, or 0.1 percent, below estimate.
Other General Fund revenue figures for the month included $74.2 million in inheritance tax, $11.3 million above estimate, bringing the year-to-date total to $375.3 million, which is $6.6 million above estimate.
Realty transfer tax was $29.1 million for December, $7.8 million above estimate, bringing the total to $161.8 million for the year, which is $10 million more than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $132.3 million for the month, $13.3 million above estimate and bringing the year-to-date total to $594.7 million, which is $30.2 million above estimate.
Non-tax revenue totaled $36.3 million for the month, $4.5 million above estimate, bringing the year-to-date total to $1.9 billion, which is $7.2 million below estimate.
For more revenue figures, click on the link below:
Allied Van Lines has released its 42nd Annual Magnet States Report, which tracks where people are moving to and from across the United States.
Texas is the No. 1 destination spot in U.S. for fifth year in a row, followed by Arizona and North Carolina.
Pennsylvania is No. 3 on the list of "outbound" states. In other words, more people leave Pennsylvania than move into the state. This is not a new trend. It's been occurring ever since Gov. Ed Rendell and his allies in Harrisburg started raising taxes and running up huge deficits.
From the Allied Van Lines report:
Michigan experienced the highest net relocation losses (more outbound than inbound shipments), followed by Illinois, Pennsylvania, New Jersey and California. A troubled auto industry and housing market most likely continued to negatively affect relocations to Michigan, as Allied Van Lines' outbound shipments of 2,210 were about double its inbound shipments of 1,019 for the state. Illinois experienced the second largest net relocation loss with 942 more outbound than inbound moves, closely followed by Pennsylvania with a net relocation loss of 854, and California with a loss of 459.
While millions of Americans struggle with unemployment and declining wages, Uncle Sam is paying big salaries to federal workers.
From The Washington Examiner:
While many workers in the private sector have despaired of a pay increase in the past few years, Congress takes care of federal employees with annual raises, awarding 3.9 percent in 2009, 3.5 percent in 2008 and 2.7 percent in 2007.
The average pay for the nation's 1.9 million federal workers is a little over $71,000, with the 372,041 federal workers in the Washington area earning an average of $94,047. The average salary for the nation's 108 million private-sector workers is $50,028.
While the proposed pay increase for next year is relatively small, the boost combined with an increase in federal government salaries amid a looming budget deficit crisis and the nation's 10 percent unemployment rate managed to raise some eyebrows.
"I about fell off my chair when I saw that the number of federal employees making more than $150,000 have more than doubled in the last 18 months," said Rep. Jason Chaffetz, a Utah Republican. "While the American people are hurting, the federal government is padding its pocket. This is totally inappropriate and unacceptable."
Americans for Tax Reform has released its 2009 Naughty and Nice List featuring a lot of well-known Democrats, including Vice President Joe Biden and Speaker of the House Nancy Pelosi.
In case you haven't figured it out, Biden and Pelosi are on the "Naughty" list, which also includes former Gov. Jon Corzine, Rep. Charlie Rangel, Senate Majority Leader Harry Reid, Sen. Chris Dodd, Rep. Barney Frank and Rahm Emanuel.
Why it's a virtual who's who of everybody running Washington ... and running this country into the ground.
The "Nice" list is overwhelmingly Republican: House Republican Leader John Boehner, Sen. Mike Johanns, Rep. Michelle Bachmann, Rep. Darrell Issa, Sen. Jim DeMint and Rep. Tom Price.
Sen. Bayh: Democrats 'totally out of touch with the sacrifices middle-class Americans are making'
From POLITICO:
Sen. Evan Bayh – who joined Sens. Claire McCaskill (D-Mo.) and Russ Feingold (D-Wis.) in breaking from their party to oppose the bill – said in a statement Monday that Washington politicians "are totally out of touch with the sacrifices middle-class Americans are making."
Last time I checked, Sen. Bayh, Democrats were in control of both Houses of Congress and the White House. So I'm guessing your reference to "Washington politicians" is a shot at your fellow Democrats.
The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.
Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession's first 18 months — and that's before overtime pay and bonuses are counted.
Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession's first 18 months — and that's before overtime pay and bonuses are counted.
Some 244 businesses on the Pennsylvania Department of Revenue's tax delinquent list owe the state more than $8 million, according to Revenue Secretary Stephen H. Stetler.
"These businesses collected taxes from their customers and employees but failed to send the money to the commonwealth," Stetler said in a prepared statement. "I encourage taxpayers to visit the department's Web site -- www.revenue.state.pa.us -- to see the list of delinquent businesses."
From the Department of Revenue:
Thirty-two new delinquent taxpayers were added to the list this month, including: Allegheny Answering Services, Pittsburgh ($117,120.38); Petz Unlimited Inc., Mechanicsburg, Cumberland County ($17,381.60); Urology Group Inc., Bala Cynwyd, Montgomery County ($33,980.60); Edwin C. Hill dba Hills Auto Repair, Altoona, Blair County ($7,832.51); Energetics Mechanical Inc., Easton, Northampton County ($8,977.58); and EMS Management Systems Inc., Kingston, Luzerne County ($38,009.86).
The list includes businesses that owe sales and/or employer withholding taxes. Since the list debuted in April 2006, 509 of the 753 businesses, or 67.6 percent, that appeared on the list have been removed because they paid taxes in full, committed to deferred payment plans or went out of business.
When supporters of Obamacare tell you the massive government takeover of health care is "revenue neutral," it just means they've figure out a way to hide the fact that you will get hammered with new taxes to pay for it.
From the latest column by Dick Morris and Eileen McGann:
While Obama has been at great pains to make a show of avoiding taxes on the middle class to pay for his health care changes, his proposed increase in Medicaid eligibility will have a huge impact on the 39 states whose income cutoffs for the program are below those required in the new federal legislation.
All states except for Connecticut, Illinois, Maine, Massachusetts, Minnesota, New Jersey, New York, Rhode Island, Tennessee, Vermont and Wisconsin (plus the District of Colombia) will have to raise their eligibility for Medicaid under the Senate health care bill. And they will have to pay for part of the cost. Under the House bill, with a higher Medicaid eligibility standard, Massachusetts and Vermont would also have to pay more.
The magnitude of the new Medicaid spending required by Obamacare is such as to transform the nature of state finances. A large part of the reason that some states, particularly in the South, have been able to avoid higher taxes is because they have chosen to keep down the Medicaid eligibility level.
Pennsylvania taxpayers will have to come up with $1.7 billion in additional revenues to make up for the costs of Obamacare should it pass, according to Morris' analysis of the current health care bills being debated by Democrats.
Read the full column, "Obamacare To Hike State Taxes," at Townhall.com
Working families in Pennsylvania pay a far higher share of their income in state and local taxes than their wealthiest counterparts, according to a new study by the Institute on Taxation & Economic Policy.
Other highlights (or low lights) from the study:
* Pennsylvania families earning less than $19,000 - the poorest fifth of Pennsylvania taxpayers - pay 11.3% of their income in Pennsylvania state and local taxes.
* Middle-income Pennsylvania taxpayers - those earning between $35,000 and $56,000 - pay 9.6% of their income in Pennsylvania state and local taxes.
* The richest Pennsylvania taxpayers - with average incomes of $1,369,600 - pay only 5% of their income in Pennsylvania state and local taxes.
* After accounting for federal deduction offsets, the discrepancy is even starker: the poorest fifth pay 11.2% of their income in state and local taxes, middle-income families pay 9.1%, and the richest Pennsylvanians pay 3.9%.
* Washington, Florida, South Dakota, Tennessee, Texas, Illinois, Arizona, Nevada, Pennsylvania, and Alabama were named as the 10 Most Regressive Tax States. Pennsylvania ranked ninth.
The review the entire report, "Who Pays? A Distributional Analysis of the Tax Systems in All 50 States," follow the link below:
Join Pennsylvania Tea Party Coalition, Smart Girl Politics, Freedomworks, and other organizations for a Nov. 14 "March on Harrisburg" to take our message of fiscal responsibility and lower taxes directly to state lawmakers. Please join us for a big march and rally on the capitol steps in Harrisburg!
Who: Coalition of Tea Party groups and taxpayer advocates What: March on Harrisburg (State Capitol Steps) When: Saturday, Nov. 14th from 2:00 pm to 5:00 pm Why: To send a message to state lawmakers that we support limited government and lower taxes
FreedomWorks Chairman Dick Armey will be the keynote speaker at the state capitol.
To RSVP for the March on Harrisburg, click here. For more details on the march, check out www.PAMarch.com
In case you're wondering which Pennsylvania members of Congress supported the Pelosi Health Care Bill, which will raise taxes and put your family's current health care coverage at risk, see the list below.
If you see any of the names on a ballot next May or November, vote for the other person:
Robert Brady (D-PA-1) Chaka Fattah (D-PA-2) Kathy Dahlkemper (D-PA-3) Joe Sestak (D-PA-7) Patrick Murphy (D-PA-8) Christopher Carney (D-PA-10) John Murtha (D-PA-12) Paul Kanjorski (D-PA-11) Allyson Schwartz (D-PA-13) Mike Doyle (D-PA-14)
By formally endorsing the House health care bill, President Barack Obama effectively announced that the central promise of his 2008 campaign was a lie, says Americans for Tax Reform, a non-partisan coalition of taxpayers and taxpayer groups.
During the campaign, Obama made a "firm pledge" not to raise "any form" of taxes on families making less than $250,000 per year but the Pelosi bill would impose those taxes on middle-class familes, ATR argues.
A good column by Brad Bumsted of The Pittsburgh Tribune-Review about how so-called conservative western Pennsylvania Democrats in the state House let down their constituents by supporting the deficit budget pushed by Gov. Ed Rendell and legislative leaders.
Instead of sticking with House Republicans to oppose the 2009-10 budget and higher taxes, the "Blue Dogs" turned into lap dogs, Bumsted writes.
From Bumsted's column:
On the final tax vote, only two Blue Dogs -- Rep. Joseph Petrarca, D-Vandergrift, and Rep. John Pallone, D-New Kensington -- barked. They were the only Democrats to vote against it.
Most of the Blue Dog Democrats showed in the end they were team players.
They could have rocked the Capitol on Aug. 3 but chose to take an obvious victory.
From their perspective, getting their leaders to declare that the income tax was dead was significant and it truly ended that debate.
It was a pivotal day in the historic budget battle. Some Democrats might think about it again next year when Republicans are campaigning against them, citing their votes for the "$1 billion state tax increase."
While Barack Obama and Congressional Democrats prepare to enact the largest tax in U.S. history on American consumers at the behest of global warning alarmists, there is growing evidence that the Earth has been cooling for the past 30 years. That's right. Cooling. Not warming, as Al Gore would have you believe.
From a new editorial in Investor's Business Daily:
Al Gore wasn't there to throw out the first snowball, er, baseball, so he might not have noticed that Saturday's playoff game between the Colorado Rockies and the Philadelphia Phillies was snowed out — in early October. The field should have been snow-free just as the North Pole was to be ice-free this year.
It seems that ice at both poles hasn't been paying attention to the computer models. The National Snow and Ice Data Center released its summary of summer sea-ice conditions in the Arctic last week and reported a substantial expansion of "second-year ice" — ice thick enough to have persisted through two summers of seasonal melting.
According to the NSIDC, second-year ice this summer made up 32% of the total ice cover on the Arctic Ocean, compared with 21% in 2007 and 9% in 2008. Clearly, Arctic sea ice is not following the consensus touted by Gore and the warm-mongers.
This news coincides with a finding published in the journal Geophysical Research Letters last month by Marco Tedesco, a research scientist at the Joint Center for Earth Systems Technology. He reported that ice melt on Antarctica was the lowest in three decades during the ice-melt season.
Each year, millions of square miles of sea ice melt and refreeze. The amount varies from season to season. Despite pictures taken in summer of floating polar bears, data reported by the University of Illinois' Arctic Climate Research Center at the beginning of this year showed global sea ice levels the same as they were in 1979, when satellite observations began.
So why are Barack Obama and Nancy Pelosi pushing for a cap-and-trade bill that will impose higher energy taxes on American families? You might want to ask your representatives in Congress that very same question.
Colin McNickle of The Pittsburgh Tribune-Review takes a shot at state Sen. Jane Orie, a Republican who voted to support the better-late-than-never Pennsylvania budget.
State Sen. Jane Orie has some explaining to do. Americans for Tax Reform chides the Allegheny County Republican, the Senate majority whip, for breaking her pledge to not raise taxes. Ms. Orie was a signatory to ATR's Taxpayer Protection Pledge but voted for new taxes last week. To paraphrase the axiom, if you give her time, she often succeeds in living up to her hypocrisies. Or as the German proverb goes, "When the fox preaches look to your geese."
Orie is not alone. Half the Senate Republicans voted to support a budget that increases taxes on many Pennsylvanians even though they promised to oppose all tax hikes.
NEWS FLASH: Pa. Legislature sends $27.8B budget to Rendell
It took 101 days into the new fiscal year, but the country's most expensive state legislatures has finally agreed on a budget for 2009-10.
From Marc Levy of The Associated Press:
A $27.8 billion state budget was on its way to the desk of Gov. Ed Rendell following a lopsided vote of approval from the Senate — a giant step toward ending Pennsylvania's 101-day budget stalemate, the nation's longest this year.
The 42-7 Senate's vote followed House approval on Wednesday.
The Senate voted without debate moments after signing off on a companion bill to tap more than $1.5 billion from the state's reserves. That bill still awaited House approval.
Rendell has said he would sign the appropriations bill, but it was unclear whether he would do so before the House passes the companion bill.
The appropriations bill cuts overall spending by more than 1 percent, while boosting spending on operations and instruction in public schools by $300 million, or 5.7 percent, a level that Rendell insisted upon.
The politically divided Legislature has been stymied by how to resolve a multibillion-dollar, recession-driven shortfall.
The final agreement relies on a blend of federal budget aid, transfer from reserve funds, spending cuts and nearly $500 million in new taxes on sales of cigarettes, little cigars and businesses that pay the capital stock and franchise tax.
The plan also relies on legalizing and taxing table games at the state's slot-machine casinos and leasing more state forest land to natural gas exploration companies.
State Rep. Curt Schroder (R-155th Dist.) voted against the long-awaited state budget that passed by a 107-93 vote in the House on Thursday.
Schroder offered the following statement on his vote:
"I could not vote for this bill. Like last year's budget, it contained inflated revenue projections and relied too heavily on stimulus funding and one-time revenues. By passing this legislation, the House is making the same mistake it made a year ago that resulted in a $3.5 billion revenue shortfall.
"This budget drains the state's Rainy Day Fund and the Health Care Providers Retention Fund. Without these critical reserve accounts we will be unable to cushion an expected revenue shortfall next year. It also, for the first time, dips into the principal reserves in the tobacco settlement fund. With revenues already $140 million below projections for the year, I believe we will face another deficit next June.
"The House Republicans had proposed a budget that is slightly leaner, balanced, did not raise taxes, funded essential state programs and services, and ensured that the state would live within its means, but it was not considered by the Democrat leadership in the House. Instead, we were forced to consider a budget bill that raises taxes by more than $1 billion during a recession.
"On the bright side, we prevented an increase in the Personal Income Tax, sales tax, taxes on small games of chance and the arts, among others."
The measure goes back to the Senate for concurrence on House amendments to the bill.
This is what happens when Pennsylvania legislators stay up past their bed time.
In a late-night vote Friday, House Democrats pushed through a Tax Reform Code bill that increases taxes on Pennsylvanians by nearly $2 billion.
The measure passed by a 103-98 margin, with all House Republicans except Dennis O'Brien voting "No." Two western Pennsylvania Democrats -- John Pallone and Joseph Petrarca -- also voted "No."
House Republicans were quick to criticize their tax-happy colleagues who supported House Bill 1531. From state Rep. Tom Quigley, R-146:
"Raising taxes during a recession is a disaster waiting to happen, and this bill would raise an additional $1 billion in taxes. Taxes strangle growth and will only keep the Commonwealth from a full economic recovery. These taxes are the antithesis of what is needed to create jobs, increase personal income for our hard-working families and boost consumer confidence.
"This bill is another blow for education, the supposed budget priority of our governor. Not only was all funding for education vetoed from Senate Bill 850 in August, but now the Democrats are trying to reduce funding for the Educational Improvement Tax Credit (EITC). This tax credit allows businesses to contribute to educational programs, including non-public schools, that are not provided for in our state budget. Non-public students are already going without textbooks because of this administration, and now they are going to have to make due with even less.
"The House Republicans have put forth a responsible and balanced budget proposal, in House Bill 1943, that would not negatively impact our economy, as this bill certainly will. I am hopeful that when this bill fails in the Senate, the fiscally sound House Republican plan will finally be considered."
Rep. Curt Schroder (R-155) issued a press release late Friday stating that it appears Gov. Ed Rendell and certain House and Senate leaders are repeating the mistakes in the tentative state budget agreement that got Pennsylvania in the financial mess it is in now.
From Schroder's release:
"This budget does not solve our problems," said Schroder. "It increases spending, relies on one-time revenues and taxes businesses and citizens at a time they can least afford it. Passage of this budget will ensure another budget fiasco next year."
On Sept. 18, Gov. Ed Rendell and three of the four legislative caucuses reached a tentative $27.9 billion state budget agreement without the participation of the House Republicans, who several weeks ago, put forth their own $27.5 billion plan. The Republican plan cut spending below last year's level, did not raise taxes, covered essential government services, provided increased funding for education and preserved the state's Rainy Day Fund. Further, the plan was balanced and sustainable, but House Democrats, who hold the majority and therefore the control in the House, refused to consider it. Instead, House Republicans were left out of the budget process.
"Three months into the new fiscal year, Pennsylvania is the only state without a budget, and the budget being proposed calls for increased spending in a down economy. Ironically, it is awash in walking-around-money or WAMs," said Schroder. "This budget proposal cuts funding for libraries, social services and education. To include grants for legislators' pet projects is an affront to every group getting its funding slashed. It taxes museums, concerts and other cultural events, cigarettes and small games of chance. It expands gambling and drains the Rainy Day Fund, which leaves us without money to cover essential services should we come up short again next year.
"The most disturbing thing is the stealth, secretive way this deal was reached. We will be asked to vote on this deal within days, yet we have not seen the line-item details," said Schroder. "As I see it, the proposed budget will only serve to prolong the pain being experienced by Pennsylvania citizens, and it offers little hope for economic recovery anytime soon," he said.
Rendell, Legislature keep digging a deeper hole for PA
The first rule of holes: When you're in one, stop digging.
While Gov. Ed Rendell and the Pennsylvania Legislature are still trying to figure out what to do about last year's $3.25 billion budget deficit, Pennsylvania is facing another financial disaster for 2009-10.
Revenue collections for the first three months of the new fiscal year have fallen short of projections. That's a fancy way of saying Pennsylvania is headed for another fiscal crisis -- even while elected officials struggle to get the state out of the mess they created last year.
Pennsylvania collected $2.1 billion in General Fund revenue in September, which was $118.6 million, or 5.5 percent, less than anticipated, according to Revenue Secretary Stephen H. Stetler. Fiscal year-to-date General Fund collections total $5.3 billion, which is $140.6 million, or 2.6 percent, below estimate, Stetler reported.
Tax revenues from the state's two biggest sources of income fell short for the third consecutive month of the new fiscal year, adding to the 12-month decline in the 2008-09 fiscal year.
From the Department of Revenue's September Collection Report:
Sales tax receipts totaled $633.4 million for September, $38.8 million below estimate. Year-to-date sales tax collections total $2 billion, which is $52.2 million, or 2.5 percent, less than anticipated.
Personal income tax (PIT) revenue in September was $835.4 million, $69.5 million below estimate. This brings year-to-date PIT collections to $2.2 billion, which is $97.9 million, or 4.3 percent, below estimate.
The only bright spot is September's corporation tax revenue collections of $403.9 million, which was $5.6 million above estimate. Year-to-date corporation tax collections total $541.4 million, which is $7.3 million, or 1.4 percent, above estimate.
More from the Revenue Department:
Other General Fund revenue figures for the month included $59.1 million in inheritance tax, $3.4 million below estimate, bringing the year-to-date total to $181.6 million, which is $6.1 million below estimate.
Realty transfer tax was $23.5 million for September, $1.5 million below estimate, bringing the total to $82.2 million for the year, which is $3.7 million less than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $85.4 million for the month, $7.2 million below estimate and bringing the year-to-date total to $259.4 million, which is $1.2 million above estimate.
Non-tax revenue totaled $9.8 million for the month, $3.7 million below estimate, bringing the year-to-date total to $52.1 million, which is $10.8 million above estimate.
Click on the link below to view the full September report:
At the 90-day mark in the new fiscal year, Gov. Ed Rendell announced he is setting an Oct. 4 deadline ... or maybe Oct. 6 ... for the Legislature to have an approved budget on his desk.
We know how well the Legislature meets deadlines. It took the leaders of three of the four caucuses 80 days into the fiscal year to reach a budget agreement acceptable to Rendell. (House Republicans still don't want any part of the deal.)
So why the new-found sense of urgency on the part of the governor? Because people are beginning to figure out that the "deal" reached on Sept. 18 was just another red herring to distract Pennsylvanians from the ineptness of the governor and Legislature.
"We've had time," Rendell said Monday. "We should be able to get this done, no ifs, ands or buts about it. And there are a lot of people out there who are depending on us to get this done."
The reality is there is no deal. Rendell and the legislative leaders don't have the votes to get the so-called compromise agreement passed in the state House. They've been trying for 10 days to gather enough votes, but they keep coming up short. And every day that goes by, the "deal" loses more support.
Some house members won't vote for the "deal" because of the controversial tax on admission to arts venues, museums and zoos. Others object to the plan on environmental grounds. Some are upset with the proposal to tax games of chance and bingo operations at fire halls.
It's clear that Rendell and the legislative leadership jumped the gun on Sept. 18. While the Senate could probably come up with 25 or 26 votes to pass the budget deal, the votes are not there in the House, where up to 30 Democrats could bolt.
Democrats hold a slim 104-99 majority. Even if 10 Republicans can be bribed into voting for the deal, that's still not enough votes to make up for the Democratic defectors.
Forget about Rendell's latest deadline. It will come and go. I'm thinking Halloween before a real budget agreement is reached.
Check out more on the unraveling of the "budget deal" at POLICY BLOG
Tax: A Required Contribution or Fee Levied by a Government
George Stephanopoulos, former senior advisor to Bill Clinton, on ABC's "This Week" grilled the President on how his health care overhaul would raise taxes on the middle class.
The President tried to dance around the issue -- just as he has done on numerous occasions regarding abortion funding in the health care bill. However, he can't dance away from this fact, either.
Politico reports today that page 29 of the bill introduced Sen. Max Baucus (D-Mont), says: "The consequence for not maintaining insurance would be an excise tax."
President Obama has developed a serious credibility problem as Factcheck.org, Politifact.com, and now Politico have reported on the President's misleading statements on his health care bill.
However, the American people can't be misled so easily. They instinctively know that imposing new taxes or involuntary payments (mandates) combined with massive spending will only further burden families and the next generation of Americans.
U.S. Rep. Jim Gerlach is one of 28 members of Congress who signed a letter sent to the Inspector General of the Housing and Urban Development asking for a review of how the liberal activist group ACORN used taxpayer funds.
Gerlach (PA-6th District) wants HUD officials to make sure ACORN is held accountable for every dollar of taxpayer funding it has received, according to a press release issued Monday.
From Gerlach's press release:
In a letter to HUD Inspector General Kenneth M. Donohue, Gerlach requested a comprehensive audit of ACORN's finances to give the public some peace of mind that their hard-earned tax dollars have not subsidized corrupt or illegal activity.
"In the wake of new, but not unfamiliar, reports of criminal and illicit activity involving ACORN, I believe it is imperative that this organization’s finances be reviewed and investigated by your Department to determine whether improper and illegal use of federal dollars has occurred since ACORN first began receiving federal funds in 1994," Gerlach wrote.
The letter signed by 26 Republican members of the House Financial Services Committee and GOP Congressmen Mike Pence of Indiana and Pete Sessions of Texas.
Video of ACORN employees in New York and Maryland giving illegal advice to two filmmakers posing as a prostitute and a pimp prompted the U.S. Census Bureau to end its partnership with ACORN on Friday. The Senate voted 83-7 on Monday to cut off Housing and Urban Development funding slated for ACORN.
ACORN – which stands for the Association of Community Organizations for Reform Now -- has been the focus of voter-registration fraud investigations in recent years.
Locally, two ACORN workers in March 2008 pleaded guilty in Berks County Court and were sentenced to jail for creating phony voter-registration forms in order to collect cash from the organization, according to the Reading Eagle.
In July, Dauphin County election officials have investigated over 100 suspicious voter-registration applications submitted by ACORN
And In September 2006, nearly 100 fraudulent voter registration applications were filed in Delaware County, prompting the District Attorney’s Office to issue an identity theft alert. All 100 applications were filled out by four individuals working for ACORN.
Rep. Doug Reichley: Budget deal 'not in the best interest' of many PA residents
Rep. Doug Reichley (R-Berks/Lehigh), Republican vice chairman of the House Appropriations Committee, issued the following statement Monday following the announcement Friday of a tentative budget agreement between Gov. Ed Rendell and three of the four legislative caucuses:
"I think all Pennsylvanians welcome the end of the embarrassing spectacle of our budget impasse over these last three months. Not only are we the last state in the nation to reach a budget agreement, we were also the only state in the country where the governor was proposing to increase spending in the midst of the worst economy in 70 years. Regrettably, the agreement reached by the governor and Senate Republicans, House Democrats, and Senate Democrats is not in the best interest of the many residents of our state who are struggling with job losses and lower household incomes.
"The governor and these three caucuses have brokered a deal where many businesses will look at a retroactive increase in the Capital Stock and Franchise Tax. This 53 percent increase will then be continued over the next three years, instead of permanently phasing out the tax as was currently stated in law.
"Individual consumers will see a 25 cent increase per pack in the cigarette tax, a new tax on small cigars, a new 20 percent tax on the proceeds from small games of chance, such as raffles and punchcards, and a new sales tax on the ticket price for admission to concerts, museums, and zoos.
"In addition to these new taxes, the concocted plan calls for taking every last cent out of the $750 million Rainy Day Fund, and raiding the state medical insurance fund which is meant to protect health care providers from disastrous litigation awards. This is not a prescription for fiscal stability either this year or next year when we may be faced with similar budget shortfalls.
"What is even more troubling than the tax hike binge is the absolute lack of detail being provided to the general public. We still do not know how libraries, hospitals, service providers, and school districts will be impacted. The governor was pleased that an additional $300-plus million of state tax dollars will be invested in education as well as his other pet programs, but the question remains whether those funds will be distributed equitably or primarily used to benefit Philadelphia, as has happened in the past.
"For five months, House Republicans have proposed budget plans calling for greater reductions in spending than agreed to last week. Our plan balanced the budget without raising a single tax on businesses or individuals. Unfortunately, the governor has convinced the other caucuses to increase taxes and maintain spending at last year's $28 billion budget level.
The governor and the other three caucuses have made their deal. Now let them put up the votes to raise taxes and spending."
Gov. Ed Rendell said Friday night that there are no winners or losers in the compromise that ended Pennsylvania's 80-day-old budget impasse.
Don't believe him. There are always winners and losers in every budget agreement and this one is no exception.
If you smoke, you're going to pay more. If you support the arts in Pennsylvania, you are going to pay more. (The deal expands the state sales tax to cover tickets for concerts, museums, theaters, etc.)
If your church or nonprofit group uses bingo or other small games of chance as fundraisers, you're going to have to pay the state under a new tax inlcuded in the deal.
If you're a business owner, you're going to continue paying some of the highest business taxes in the country. And so on.
Although details are sketchy, (Rendell purposely declined to reveal many details until the rank-and-file state lawmakers are briefed next week), The Commonwealth Foundation offers some instant analysis based on what we do know.
The budget deal includes $821 million in tax increases and fails to address at least $1.7 billion in deficit spending from last years' budget, according to the Foundation.
The state's "Rainy Day Fund" will be exhausted with legislative leaders agreeing to spend the entire $775 million to balance the budget, according to the Foundation.
That's a risky move because the economy isn't getting any better and we could sitting on another huge budget deficit next summer.
I was pleasantly surprised with The Associated Press' coverage of the March on Washington on Saturday, Sept. 12. The wire service, which largely ignored the Tea Parties throughout the year, moved a lengthy article and more than a dozen photographers of the protest. Also, it did not downplay the turnout, putting right there in the lead that "tens of thousands" of Americans marched against Obama and his big government schemes. You can read the AP story and view photos of the event at The Mercury's Web site.
"They made their numbers work on paper, but the numbers won't work in the real world," Gov. Ed Rendell said today of the budget agreement reached Friday by Senate Republicans and House Democrats.
Rendell said he will not sign the budget compromise if it reaches his desk. House Republicans are also opposed to the proposed budget, which is now 74 days late.
Read Rendell's full statement and his list of flaws contained in the budget deal at the link below:
Organizers Predict Thousands of Tea Party Activists Will Attend Saturday’s March on Washington
From CNSNews.com:
"I believe there is a new center in American politics around the idea of what we call 'pocketbook conservatism,' " said Matt Kibbe, president and CEO of FreedomWorks, one of more than a dozen conservative organizations sponsoring the march.
Americans from all walks of life have already pledged to show up, Kibbe said, with virtually every one of them telling organizers the same story: " 'I've never shown up at a Town hall meeting, I've never shown up at a protest, I've never even talked to my congressman, but I have to show up now because things (in Washington) are out of control,' " Kibbe said.
This will likely be the largest gathering of fiscal conservatives ever, according to Adam Brandon of Freedom Works.
Left unchecked, Barack Obama, Nancy Pelosi and Harry Reid plan to run up higher deficits over the next 10 years than all American presidents and Congress have incurred in the last 230 years.
From DefeatTheDebt.com:
Think America is "Unsinkable?"
Every year, the government spends hundreds of billions of dollars it doesn't have, and we sink deeper and deeper into debt. We cannot afford to go down with this ship.
The national debt will grow by more than $9 trillion, according to an August 2009 report by the White House Office of Management and Budget.
How much is $9 trillion, or even $1 trillion? Confronted with enormous numbers like millions, billions and trillions, it's helpful to use comparisons with other contexts. For example, one million seconds will pass in just 12 days. One billion seconds is almost 32 years. And one trillion seconds? That’s 31,688 years. One trillion dollars is a lot of money, and over the next decade the US federal government will borrow that sum nine times over — more than $9 trillion.
In the next 10 years, the federal government will borrow trillions of dollars for spending it cannot afford. But the American people will eventually have to pay the price for this irresponsible borrowing.
The Pennsylvania Department of Revenue has released tax collection numbers for the month of August, the second month of the new fiscal year (although the state still doesn't have a budget for the 2009-10 fiscal year).
Without an approved budget and with last year's budget ending up $3.25 billion in the red, the state remains on shaky financial ground.
Pennsylvania collected $1.6 billion in General Fund revenue in August, which was $19.9 million, or 1.2 percent, less than anticipated, according to Revenue Secretary Stephen H. Stetler. Fiscal year-to-date General Fund collections total $3.3 billion, which is $22 million, or 0.7 percent, below estimate, Stetler said.
The state collected 5 percent less in July 2009 ($1.65 billion) than it did in July 2008 ($1.75 billion) when Gov. Ed Rendell's $28.3 billion red ink budget kicked in.
Collections from the two biggest sources of revenue, the sales tax and the personal income tax, were both down in August, as they were in July.
Translation for Gov. Ed Spendell and the dimwitted Democrats in the House who are holding up the budget in order to raise taxes: Pennsylvanians don't have jobs so they can't pay income taxes and they have nothing left after paying off their bills so they can't buy anything to increase sales tax revenues.
From a Revenue Department Press Release:
Sales tax receipts totaled $662.7 million for August, $13.4 million below estimate. Year-to-date sales tax collections total $1.4 billion, which is $13.4 million, or 1 percent, less than anticipated.
Personal income tax (PIT) revenue in August was $683.5 million, $28.3 million below estimate. This brings year-to-date PIT collections to $1.3 billion, which is $28.4 million, or 2.1 percent, below estimate.
August corporation tax revenue of $50.2 million was $3.9 million above estimate. Year-to-date corporation tax collections total $137.9 million, which is $2.1 million, or 1.6 percent, above estimate.
Other General Fund revenue figures for the month included $59.2 million in inheritance tax, $2.6 million below estimate, bringing the year-to-date total to $122.5 million, which is $2.7 million below estimate.
Realty transfer tax was $29.1 million for August, $2.2 million below estimate, bringing the total to $58.7 million for the year, which is $2.2 million less than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage and liquor taxes totaled $91.5 million for the month, $8.5 million above estimate and bringing the year-to-date total to $174 million, which is $8.4 million above estimate.
Follow the link below to read the rest of the revenue report:
The Mother of All Tea Parties is about to hit Washington, D.C.
Americans who believes in limited government, want to see lower taxes, less government and more freedom are invited to join the March on Washington scheduled for Saturday, Sept. 12, 2009.
The 9-12 March on Washington national coordinators are FreedomWorks.org; TeaPartyPatriots.org; and Grassfire.org/Resistnet.com
They are being supported by a who's who of conservative, anti-tax, libertarian, free-market and patriotic organizations.
POLICY BLOG has a information on buses scheduled to take Pennsylvania protesters to the event.
From the official protest Web site:
"It's time to take the tea party movement directly to Washington, D.C. Please join thousands of local organizers and grassroots Americans from across the country as we gather in our nation’s capital to deliver a message to the politicians: Enough!
We've had enough of the out of control spending, the bailouts, the growth of big government and the soaring deficits. And we reject the future tax increases to pay for all of this spending and debt down the road. We are gathering on 9-12-2009 to deliver our message in person that we’ve had enough!"
That's the minimum number of Pennsylvania jobs that would be lost if the Waxman-Markey bill, better known as Cap-and-Trade, is passed by the Senate. The House already approved the bill and President Obama said he would sign it if passes both chambers of Congress.
The 71,500 estimate comes from the National Association of Manufacturers, which commissioned a study to look at the impact of the Waxman-Markey bill in each state. The job loss number could go as high as 97,500 in Pennsylvania.
More from the study:
Higher energy prices would have ripple impacts on prices throughout the economy and would impose a financial cost on households. Pennsylvania would see disposable household income reduced by $148 to $285 per year by 2020 and $926 to $1,507 by 2030.
The study concluded that bill would cots 2.4 million jobs across the United States.
To review the complete study, visit the National Association of Manufacturers Web site, http://www.nam.org/
Taxpayers must fight Rendell and the 'spending interests'
Lowman S. Henry has some sound advice for Pennsylvania taxpayers: "If YOU don't speak up now, then the outcome of the budget crisis will be determined by those who do."
While it appears nothing much is happening while the state budget impasse marks its ninth week, Gov. Ed Rendell and the "spending interests" are working feverishly to weaken the resolve of Republican lawmakers, who have taken a "No New Taxes" stance.
From Henry's most recent post at his Lincoln Blog:
The spending interests are deploying a new tactic in their effort to inflict higher taxes on the working families of Pennsylvania: they are picketing the offices of their local state senators and state representatives and calling a compliant news media in for coverage.
In an effort to put pressure on fiscally responsible legislators, the spending interests are now resorting to pickets and demonstrations all the while chanting the mantra that it is time to end the stand-off.
I agree the budget stalemate should come to an end - but it should do so with state government living within OUR means and not raising any taxes. Otherwise, the budget crisis can go on until Easter if necessary.
Rendell has been manufacturing all sorts of doomsday scenarios for weeks now. In recent days school district officials - whose coffers are currently flush with local tax revenue - have be whining like spoiled children over the delay in state money, and over the fact Republicans want to give them less of an increase in their allowance, er, subsidies than they want.
Henry suggests Pennsylvania taxpayers give Rendell and the "spending interests" a taste of their own medicine.
"The tactic of demonstrating in front of legislative district offices is one taxpayers and taxpayer groups should emulate. Why should the spending interests be the only ones who make their voices heard?"
It would benefit every taxpayer to take time to call, write, visit - or take to the streets - in front of his/her legislator and senator's offices to either thank them for standing firm against tax hikes, or call upon them to put taxpayers first.
White House estimates of a $9 trillion budget deficit over the next 10 years ($2 trillion more than the White House predicted just a few months ago) are still way off the real deficit projections, according to an editorial in The Wall Street Journal.
The Congressional Budget Office predicts that debt held by the public as a share of GDP, which was 40.8% in 2008, will rise to 67.8% in 2019 — and then keep climbing after that, says the newspaper.
The CBO says this is "unsustainable," but even this forecast may be optimistic, the newspaper says.
From the editorial:
The real fiscal crisis in Washington is that neither Congress nor the White House are offering any escape from these trillion-dollar deficits. Mr. Obama has not called for automatic and immediate spending cuts. He has not proposed eliminating hundreds of wasteful programs. To the contrary, the White House still hasn't ruled out another fiscal stimulus, as if a $1.6 trillion deficit isn't Keynesian stimulus enough. The Administration's celebrated scrub through the budget this summer identified $17 billion in agency savings. That's what Uncle Sam is borrowing every three days.
Obamanomics has turned into an unprecedented experiment in runaway government with no plan to pay for it, save, perhaps, for a big future toll on the middle class such as a value-added tax. White House budget director Peter Orszag promises that next year's budget will have a "plan to put the nation on a fiscally sustainable path." Hide the children.
Read the full editorial, "The Pelosi-Obama Deficits," at the newspaper's Web site.
Rep. Rohrer blasts Rendell plan to expand sales tax
For the past six years, Gov. Ed Rendell has opposed efforts by state Rep. Sam Rohrer's efforts to expand the state sales tax in order to eliminate school property taxes.
Now that Gov. Rendell is floating the idea of expanding the state sales tax to help cover his $3.2 billion budget deficit, Rohrer is among the first state lawmakers to publicly condemn the idea.
From a press released issued today by Rohrer, a Republican who represents the 128th District in Berks County:
"The governor seems unable to understand that, on taxes, no means no," Rohrer said. "There is only one acceptable solution to the ongoing budget stalemate. The state must reduce spending to match its income. State government should not be adding to the burden of working families by raising taxes during this economic recession. That would be cold-hearted and wrong. Pennsylvania taxpayers deserve a compassionate government that does not kick them while they're down."
Rohrer is the Republican chairman of the House Finance Committee and the sponsor of the School Property Tax Elimination Act (SPTEA), a plan to free Pennsylvania homeowners from the burdensome property tax. Rohrer's plan would use an expanded sales tax, among other revenue sources, to fund education in the Commonwealth.
Rohrer warned residents not to be confused by the governor's proposal. While Rohrer's is about eliminating property taxes, the governor's is about expanding the state budget.
"My plan offers the hope of a property tax-free Pennsylvania," Rohrer said. "The governor's proposal is just another attempt to dig deeper into the pockets of taxpayers. He just wants more money to spend on more government."
Rendell is proposing the sales tax expansion after his earlier proposal to increase the state income tax was shot down by the General Assembly.
"The governor just doesn't get it," Rohrer said. "Whether it's an income tax, a sales tax or any other tax hike proposal he cares to offer, people just can't afford it right now. Instead of always expecting taxpayers to sacrifice and do more with less, the governor might actually have to sacrifice for a change."
Rohrer also noted it would be interesting to see which House Democrats would rise to support the governor's call for an expansion in the state sales tax to pay for additional state government spending.
"In the past, some House Democrats have adamantly opposed my plan to use a sales tax expansion to eliminate school property taxes," Rohrer said. "Will those same lawmakers now rise to support the governor's proposal to expand the tax to pay for more government? If that's the case, they would essentially be saying that they'd support a sales tax expansion to help the governor, but not to help homeowners. That's one heck of a message to send to property taxpayers in your district."
Rohrer said he will encourage his colleagues in the General Assembly who have supported the SPTEA to oppose the governor's sales tax expansion.
"The sales tax was instituted in 1953 for education only. It should remain for education only," Rohrer said. "It should not be used as a back door into the pockets of taxpayers to pay for more government spending."
Tony Phyrillas is the city editor and political columnist for The Mercury, a two-time Pulitzer Prize-winning daily newspaper in Pottstown, Pa. Phyrillas has won several national and state awards for his columns. Phyrillas has been featured on National Public Radio (NPR) and in The New York Times and is a frequent commentator on radio and television programs. He co-hosted "Talking Politics with Tony Phyrillas & Mike Pincus" on WPAZ 1370 AM.
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Rep. Doug Reichley (R-Berks/Lehigh), vice chairman of the House Appropriations Committee, released the following statement after Tuesday's passage of House Bill 2279, Gov. Rendell's latest $29 billion red-ink budget proposal: 
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