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FOR IMMEDIATE RELEASE |
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State
Rep. Dan Frankel |
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Frankel: House votes for better way to balance budget
with commonsense plans like gas drilling tax, closing tobacco loopholes
HARRISBURG, Oct. 2 – State Rep. Dan Frankel, D-Allegheny, praised today's vote by the House of Representatives to replace counterproductive taxes in the tentative state budget agreement with commonsense revenue sources.
"House Democrats have voted for a better way. We have voted to eliminate the proposed tax on arts organizations and to eliminate the proposed tax on veterans' organizations and volunteer fire departments and other community organizations that raise money through small games of chance. Our plan would also eliminate the proposed leasing of thousands of acres of state forest land for natural gas drilling," Frankel said.
"Instead, the House plan would use commonsense revenue sources that are available to balance the budget, such as ending Pennsylvania's status as one of the few states that doesn't tax natural gas companies on the valuable fuel they extract from our soil, and ending our bizarre practice of being the only state that doesn't tax cigars or smokeless tobacco," Frankel said.
"I hope the Senate will join us in passing these commonsense changes to the budget agreement."
Frankel has been a longtime champion of closing the tobacco loopholes.
"It is time to end the tax exemption for cigars and smokeless tobacco – an exemption that cigarettes do not enjoy – especially now that the state has a $3.2 billion deficit. Because the tentative budget agreement includes a cigarette tax increase, it would prompt even more young people to damage their health by becoming addicted to smokeless tobacco instead – unless the Senate joins us in closing that tax loophole," Frankel said.
"Ending the Pennsylvania tobacco subsidy isn't just about balancing the state budget – it's about preventing addiction and saving lives," Frankel said. "This is a choice between taxing families when they take kids to the zoo or a museum, or taxing predatory tobacco products that hook children and teenagers. I urge the Senate to make the right choice."
Frankel said the natural gas severance tax also makes sense. Several other states, such as Ohio and West Virginia, impose a tax on natural gas and other resources extracted from their soil. In 2008, West Virginia collected $524 million in severance tax revenue, according to a study by the nonpartisan Pennsylvania Budget and Policy Center.
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