Robbins: Senate Votes to Repeal Pay Raise, Cut Taxes, Reform Gaming Law

Harrisburg – The state Senate acted on three significant measures this week, voting to repeal the legislative pay raise, cut taxes, and strengthen ethics safeguards in the state gaming law, according to Senator Bob Robbins (R-50).

The Senate approved House Bill 1539, legislation to repeal the pay raise for the legislative, executive and judicial branches initially approved in July.

"I have heard from many constituents who urged me to vote for a repeal of the pay raise. I took their messages to heart and supported this repeal measure," said Robbins.

House Bill 1539 is expected to be considered Monday in the House of Representatives.

Robbins said the Senate also approved House Bill 515, a two-step reduction in the state Personal Income Tax, which is levied on individual wage earners and small businesses in the Commonwealth.

The first phase, set for 2006-07, would reduce the PIT rate from the current level of 3.07 percent to 3.03 percent, which would provide $120 million in savings for individual taxpayers and small businesses. Under phase two, set for 2007-08, the PIT rate would drop from 3.03 percent to 2.98 percent, which would provide an estimated $160 million in savings for individuals and small businesses.

"The Governor said he needed to raise the PIT when the recession hurt state revenues. Now that those revenues are up, it's time to bring that tax rate down," said Robbins.

In addition to the PIT cuts, House Bill 515 would promote economic growth and job creation through a package of $325 million in tax cuts for job creators over the two-year period, Robbins said. The business tax cut package includes an expansion of the Net Operating Loss cap to $20 million and a reduction in the Corporate Net Income Tax rate from 9.99 percent to 9.59 percent in 2007-08.

"Instead of sending that $325 million to Harrisburg in the form of taxes, employers will be able to invest in equipment, expansion and hiring new workers. That's a much better use of those funds," said Robbins.

House Bill 515 was amended and returned to the House of Representatives for consideration.

The Senate also approved legislation that adds a comprehensive list of ethical safeguards to Pennsylvania's gaming law.

Senate Bill 862 prohibits any public official, executive-level public employee or party official, or the spouse or minor of the official, from holding a financial interest in a licensed gaming entity during their tenure and for one year thereafter. Current law allows public officials to hold up to one-percent ownership in gaming-related companies.

The bill also sets new ethical standards for the Pennsylvania Gaming Control Board, the panel established to regulate gaming in the Commonwealth. Among the standards are requirements that the board conduct a review prior to any proceeding to determine if any member has a conflict of interest, and the appointment of alternate members to serve when a member must recuse himself or herself due to a conflict or the potential appearance of impartiality.

Robbins, who co-sponsored the bill, stated "We have been trying to close these ethical loopholes ever since the law to expand gambling was enacted last year. There is a great potential for conflicts of interest in regulating the gambling industry, and we have to do all we can to establish strong standards."

Senate Bill 862 was sent to the House of Representatives for further consideration.

CONTACT:

Mike Hengst
(717) 787-1322