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State Budget Problems

According to the Evening Bulletin:

What’s driving the much-talked-about “looming crisis” is Gov. Ed Rendell’s proposed new spending and the handful of state tax hikes he’s pushing – from a payroll tax on some employers to a gross profits tax on oil and a one percentage point hike in the sales tax. But Republicans and, some say, most Democrats have no appetite for tax increases this year.
So that should solve it, right?

Well, no, because Rendell is bent on getting a permanent funding increase for deficit-strapped mass transit agencies like the Port Authority of Allegheny County and the Southeastern Pennsylvania Transportation Authority.

Historically, lawmakers from suburban and rural districts don’t approve new sources of transit money without more highway and bridge money. But the price of gasoline virtually precludes a gas tax hike. It leaves lawmakers jittery about Rendell’s oil profits tax – intended to pay for transit – for fear the costs will be passed on to consumers.

Over the long haul, any tax on refiners will be passed on to the consumer, because it will force resources out of our state to other states which don’t have the tax burden.   In addition, this will actually increase our dependence on middle east oil.   Why?  Because the cheapest crude to refine is light sweet crude, a large source of which is middle eastern in origin.  Heavier crudes from, say, Canada or the Gulf Coast, are more expensive to refine.  Rendell’s proposed windfall profits tax will make refining heavier crudes less profitable than it is already, causing the industry to shift to more profitable sources of oil.

I don’t think there’s any problem which our governor thinks some new taxes and new spending won’t cure.  But it’s only going to serve to drive more people out of the Commonwealth.   Hopefully Rendell’s legacy won’t be to turn Pennsylvania into the new Massachusetts, with jobs and population leaving at such a fast rate that they are on track to lose a congressional seat.

3 Responses to “State Budget Problems”

  1. General Likey says:

    I hope the current budget takes many CUTS! One in particular, “Civil Air Patrol” which received over $500,000 last year and is expected to recieve $550,000 this year. The organization is corrupt as evidenced by the Federal General Acccounting Office reports between 1999 and 2006. Most notably, the organization (non-profit by the way) employees an “executive director” (office manager) who is given 25 percent of the state appropriation that is funded by us (the taxpayers). The Federal Governemnt (US Air Force) already provides a free worker to this organization, making the need for this “Executive Director” void.

    This organization will not release its financial records to the state of Pennsylvania or any interested citizen as it is required to by law.

    This organization wastes taxpayer dollars on the purchasing of vehicles for private use by the leaders of teh organization.

    This Civil Air Patrol has spent hundreds of thousands of tax payer dollars on the upkeep of a “hazing” facility where young men and women are forced to kill rabbits to eat during a week long ritualistic indoctrination of hate mongerors and satinists.

  2. Sebastian says:

    This Civil Air Patrol has spent hundreds of thousands of tax payer dollars on the upkeep of a “hazing” facility where young men and women are forced to kill rabbits to eat during a week long ritualistic indoctrination of hate mongerors and satinists.

    Did you forget to take your medication this morning?

  3. Jym says:

    Satinists? Damn those followers of exceptionally smooth and glossy fabrics.

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