Wolf’s office says it has secured House support for tax bill
In doing so, the pension reform bill that was touted as a key element to passing a budget – the state is in day 172 of a stalemate – also died.
Senate Majority Leader Jake Corman, R-Centre, said the House vote ensures the state will “be talking about tax increases for years to come”.
The governor’s office and House Democrats said a final, bipartisan tax bill had not been finalized as of Friday morning.
“If that’s not possible, then new revenue is off the table as well, and we’re going to have to plan accordingly”, Reed told reporters after the vote. Every Democrat voted against the bill, along with a majority of Republicans. It was being written Thursday night and, in addition to a personal income tax increase, it was expected to increase taxes on cigarettes and banks.
“A stopgap is not the answer”, Wolf said.
Senate Republican support for the tax increase hinges on House passage of legislation to restructure pension benefits for state government and public school employees.
Wolf and House Minority Leader Frank Dermody, D-Allegheny, have downplayed Turzai’s 24-hour ultimatum, while rank-and-file House Republicans said it would be a challenge to persuade 20 or 30 of them to support the tax increase.
Both the House and Senate are scheduled to return to the Capitol Sunday.
There are 119 Republicans in the House, the highest number since the Pennsylvania Constitution was amended in 1967 to set the number of House seats at 203.
“What I’m telling everyone is, ‘I can’t vote for sales or income unless those guys share the pain, ‘” said Rep. Kate Harper, R-Montgomery.
The breakdown occurred after the House of Representatives resoundingly defeated a proposal to rein in the skyrocketing cost of the state’s two pension funds by placing new teachers and state workers into a hybrid pension system.
Wolf, the Republican-controlled Senate and House Democrats are backing a $30.8 billion spending plan – a 6 percent spending increase – and the accompanying $1 billion-plus tax plan.