Saturday, October 3, 2009

Day 95 AND No Budget In Pennsylvania

Democrats and Republicans. Get over yourselves. A budget is a blueprint. It can be altered at any time. It is time to end the table games, (and it is okay if you want to start them). Cut the legislative staff in half- around $150 million plus benefits savings. Eliminate the WAM money- $100 million savings.

According to here is the latest braintrust proposal.

•Exempts purchases of helicopters and helicopter parts from the sales tax. This may seem a bit bizarre, like something thrown in to get the vote of one lawmaker with a helicopter manufacturer in his district, but I believe it was inspired by my pointing out that buying everyone their own Airwolf was cheaper than Corridor One.
•Increases the sales factor for corporate taxes to 83% this year and 90% next year.
•Increases the amount of net operating loss corporations can carry forward.
•Increase, retroactive to January, 2009, the Capital Stock and Franchise Tax to 2.89 mills. This rate would remain until 2012, when the phaseout would resume. The new elimination date would be January 1, 2014.
•Tax on Medicaid payments to Managed Care Organizations.
•25 cents/pack increase in the state cigarette tax.
•Tax on cigars, smokeless tobacco, and other tobacco products - 30% rate (when sold to retailer)
•License fees for tobacco manufacturers, wholesale dealers, and retailers.
•Natural gas severance tax - 5% of gross value plus 4.7 cents per thousand cubic feet (and lots of provisions how that revenue will be divied up).
•Educational Improvment Tax Credit (EITC) - increase in income eligibility for families.
•Reduces all tax credits by 33% - including the EITC and presumably the Film Tax Credit.
•Tax Amnesty for 2009-10 (delinquent as of June 30, 2009; amnesty period of April 26-June 18 2010.
•Table Games (if approved in separate legislation):
◦ License fees : $20 million from category 1 (racino) or 2 casinos, $7.5 million from category 3 (resort hotel).
◦Tax: 34% of daily gross table revenue.

Imagine that. No proposal to legalize marijuana. Is it me or is that last pproposal akin to what the Mob would extract on loan payments?

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