Senator Mensch Opposes Governor's Tax Increases

Rendell plan lifts sales tax exemption on many services

Senator Bob Mensch (R-24) today affirmed his strong opposition to Governor Ed Rendell's proposal to expand Pennsylvania's sales tax to include professional services.

"I see absolutely no justification for the Governor's proposal to expand Pennsylvania's sales tax to services," Senator Mensch said. "Government must live within its means, not ask citizens to spend an additional $500 million in sales taxes."

In his February budget address, Governor Rendell proposed an expansion of Pennsylvania's sales and use tax by eliminating 74 specific tax exemptions, which he estimates would cost taxpayers an additional $531.5 million in Fiscal Year 2010-11. The current exemptions for food, clothing and pharmaceuticals would be maintained, but the sales tax would be imposed on new areas such as museums, historical sites, zoos, and parks; recreational parks, camps and campgrounds; caskets and burial vaults; funeral parlors, crematories and death care services.

"It has been said that nothing is sure, but death and taxes and the Governor's proposal takes advantage of both," Senator Mensch said. "The Governor was unsuccessful last year in his attempt to impose a broad-based tax increase, so his tactic this year appears to be to go for stealth tax increases. On the surface, it may appear that eliminating the exemptions won't impact individual taxpayers. However, nobody should be fooled by that. These types of tax increases always end up being borne by consumers."

Senator Mensch applauded the efforts by the Association of Realtors, which rallied against the Governor's tax increase proposal during a Wednesday afternoon event in the State Capitol Rotunda.

"The Realtors, and other professional groups across the Commonwealth, foresee the devastating impact these tax increases can have on Pennsylvanians," Senator Mensch said. "Imposing the a sales tax could add tremendous costs to real estate transactions, which in turn would reduce purchasers' ability to afford the homes they want and could even force lower-income families out of the market altogether. It is unfair to penalize individuals and families in order for the Administration to feed its seemingly insatiable hunger for spending."