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FOR IMMEDIATE RELEASE |
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State
Rep. Dan Frankel |
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Frankel welcomes governor's foresight on addressing future budget issues, supports commonsense gas drilling tax, closing tobacco loopholes
HARRISBURG, Feb. 9 – State Rep. Dan Frankel, D-Allegheny, released this statement today on Gov. Ed Rendell's 2010-11 budget proposal:
"I applaud the governor's prudence in having the foresight to address two impending problems – the coming pension-cost increase and the end of federal stimulus funding. We will need to scrutinize carefully the exact details of how to generate the revenue needed to meet these challenges and prevent a multi-billion-dollar budget crisis, and other alternatives may be more beneficial. I commend the governor for getting the conversation started.
"I am very pleased the governor called for critics who demand budget cuts to be specific. We face very serious problems, and any serious solution must include specific details about how it will impact the citizens of the Commonwealth. Calling for general cuts doesn’t address the fact that each of those cuts impacts workers and families, and often hurts our most vulnerable residents the most.
"The governor is absolutely on point with two of the tax changes he called for – passing the Marcellus Shale natural gas extraction tax and closing tobacco tax loopholes. While these initiatives would not close the future budget gap by themselves, they are commonsense ways to balance the budget. Thirteen of the 14 states that out-produce us in natural gas already have an extraction tax; and the other, California, has a similar conservation fee. In addition, we should end our bizarre practice of being the only state that doesn't tax cigars or smokeless tobacco, which would have the added benefit of discouraging more young people from becoming addicted to tobacco."
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