JOHNSTOWN — Area lawmakers generally are keeping an open mind to the governor’s proposal to lower the state sales tax from 6 percent to 4 percent, while levying it on more goods and services.
“I’m sort of curious to see how it will play in Peoria,” state Sen. John Wozniak, D-Westmont, said Tuesday from Harrisburg. “Right now, everything is on the table. It’s sort of interesting: Years ago Republicans threw out the same proposal.”
Gov. Ed Rendell introduced the idea to a joint House/Senate legislative session while outlining his 2010-11 budget, saying, “It is fair. It is fairly pain-free.”
Wozniak said he’d get input from “all quarters” before deciding whether to support the change and bring 74 exemptions into taxation. The change would raise $531 million in the $29 billion budget.
He said cobbling together a budget is an arduous task, with “nobody making any commitments at this time.”
He said Pennsylvania was suffering a double whammy from the Great Recession, pulling in fewer taxes while paying out more benefits as residents are caught by the social safety nets.
“It works positively very strongly, and negatively very strongly, too,” the senator said.
State Sen. Richard Kasunic, D-Dunbar, said, “The important thing is there’s no broad-based tax (increase) here, no increasing of the PIT, the personal income tax.”
Kasunic, whose district takes in part of Somerset County, said he would like to see the sales tax broadened – but in conjunction with property tax relief.
He said the sales tax is a more fair way of taxation, spreading the burden beyond homeowners.
“Where’s the commitment to fix the property tax? If we’re talking sales tax, this needs to be part of that conversation: Doing away with an antiquated system of real estate taxation,” he said.
“That’s one of the things I will be questioning.”
Rep. Bryan Barbin, D-Westmont, said, “The idea of having a fairer tax is always better.”
But he said he could not support raising taxes in this economic climate.
“From my perspective, you let the economy recover,” Barbin said. “You collect the taxes you need to collect but don’t tax other business more now because we’ll lose jobs. We’ve got to make sure we don’t lose any more jobs. The economy is too fragile right now.”
He said the commonwealth needs to collect only the money it needs for government to function. As the economy turns the corner, more tax revenues will come in, Barbin said.
State Reps. Gary Haluska, D-Patton; Carl Metzgar, R-Berlin; and Frank Burns, D-East Taylor, could not immediately be reached for comment.
Barbin, Kasunic and Wozniak all said they understand the importance of passing a budget by June 30. Last year’s budget impasse lasted 101 days, the longest in the nation. The delay became fodder for jokes statewide, as well as a source of frustration and pain for Pennsylvanians.
In a statement, Burns said, “We learned a lot from that process and are ready to do the bipartisan work necessary to pass a responsible budget on time this year.”
Said Kasunic, “We have to prove to the people of Pennsylvania we are serious about this, to try to win back some respectability and trust.”
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