CapNews

Mike Folmer
Republican
Senate District 48

Occupation:
State Senator - Lebanon, Berks, Dauphin, Chester and Lancaster Counties

Term Expires:
2010

Education:
Grace College, B.A., History, 1978

Committees:
•State Government, Vice Chair
•Aging & Youth
•Agriculture & Rural Affairs
•Education
•Labor & Industry

Personal History:
Married to Sheila

Contact Information:
Senate Box 203048
Harrisburg, PA 17120
Room 457 Main Capitol
(717) 787-5708

D.O. Address:
101 Municipal Bldg.
400 S. 8th St.
Lebanon, PA 17042
(717) 274-7705

Email:
mfolmer@pasen.gov

Website:
http://senatorfolmer.com

Taxpayer Protection Act Attracts Bipartisan Support

Mike Folmer

Sen. Mike Folmer
By:
Sen. Mike Folmer

In response to the Governor's Budget Plan that proposes seven tax increases, I would like to remind Pennsylvanians that the Senate has proposed legislation that would tighten the reins on state spending and bring taxation under control.

Pennsylvanians are overtaxed because government can't kick its addiction to spending. Unlike Pennsylvania families and businesses, which are forced to live within their means, state government routinely spends excessively. Unfortunately, the money government overspends comes from the taxpayers.

We have seen sharp increases in the rates of the following taxes since their respective inceptions:

  • Sales and Use Tax -- 500 percent
  • Personal Income Tax -- 35 percent
  • Gross Receipts Tax -- 500 percent

Over the last several years, state government has spent in excess of inflation and population growth. Research by nonpartisan groups such as the Pennsylvania Commonwealth Foundation indicates that states with a penchant for spending beyond inflation and population growth lag in the creation of new jobs.

My proposed Taxpayer Protection Act, which has the bipartisan support of 28 Senators -- including all members of Republican leadership, would limit annual expenditures from the Commonwealth's General Fund to the lesser of: 1) the average rate of personal income growth for the three preceding years; or 2) the average inflation rate for the three preceding years plus the average percentage change in population growth for the three preceding years. If the cap were in effect for the upcoming fiscal year, expenditures from the General Fund would be allowed to increase by 3.15 percent.

Seventy-five percent of surplus tax dollars would be returned to the taxpayers through an offsetting reduction in the rate of the state Personal Income Tax (PIT); twenty-five percent of surplus tax dollars would be deposited into the state's "Rainy Day Fund."

The proposal allows for the spending cap to be voided during emergencies, provided that two-thirds of both the House and Senate approve suspending the cap.

A companion bill to amend the Pennsylvania Constitution to make taxpayer protection permanent will be introduced next week by Senator Bob Regola (R-Westmoreland).

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