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For Immediate Release
February 9, 2010
Contact: Sally Kohr
(717) 787-4651
 

Alloway Calls for No New Taxes, Lower Spending in Proposed State Budget  

Harrisburg – State Senator Rich Alloway (R-Franklin) today said Gov. Rendell's proposal to increase state spending by $1.15 billion and impose new taxes will face close scrutiny in the Senate in the weeks and months ahead. 

"In these very difficult economic times, a spending increase of 4.1 percent seems very high," Alloway said.  "State government must do what Pennsylvania families struggle to do day after day, week after week in this tough economy  -- live within its means." 

Alloway said that Senate Republicans plan to go through the governor's spending plan line by line to produce a budget that's not a wish list, but that is sustainable and  reflects the realities of today's economy. 

The Governor's plan calls for expanding the number of goods and services subject to the state sales tax – eliminating 74 exemptions – while setting the new rate at 4 percent.  His budget would also impose new taxes on Marcellus Shale natural gas extraction and on cigars and smokeless tobacco. He also proposes the eliminating of the 1 percent fee granted to vendors for collection of Pennsylvania's sales tax. 

Alloway also stressed that the budget must be passed on time – so that community organizations and those who rely on state funding are not harmed.  

"This is going to be a tough budget year, but we need to get this done on time so that Pennsylvanians aren't held hostage to the process," Alloway said.  "I look forward to working to develop a plan that protects our taxpayers and won't mortgage our future."