The Pittsburgh Tribune-Review Eric Heyl column

Eric Heyl

Jun. 17, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- Much malarkey exists in Gov. Ed Rendell's plan to once again pick your pocket.

The Artful Dodger of Pennsylvania politics blurred fact and history Tuesday in proposing a state personal income tax increase from 3.07 percent to 3.57 percent.

The move is necessary, the governor contends, to generate $1.5 billion annually and help stave off a projected state budget deficit of $3.2 billion.

This income tax hike would be significantly higher than the one Rendell pushed through the Legislature in 2004 that boosted the levy from 2.8 percent to the current rate.

Don't worry, though, because Rendell promised this latest increase will be rolled back after three years.

Forgive skeptics who note the governor's assurance would carry a bit more weight if he weren't leaving office at the end of next year.

As Rendell began publicly selling this unpopular proposal to dubious lawmakers and outraged taxpayers, what might he have been thinking privately?

Let us speculate.

--Said: "Pennsylvania's current personal income tax rate of 3.07 percent is the second-lowest in the nation among the 41 states that impose one."

Thought: "I'm going to talk fast here, before people realize that 3.07 percent is much higher than the zero percent levied by the nine states that somehow have survived without a personal income tax."

--Said: "During the three-year period the tax would be at 3.57 percent, Pennsylvania would still have the third-lowest such tax in America."

Thought: "I hope no one figures out that we're able to keep the income tax low here partly because Pennsylvania has the eighth-highest gasoline tax in America -- 32.3 cents a gallon, tacked onto the 18.4-cent-per-gallon federal gas tax."

--Said: "I am confident the General Assembly will live up to the commitment I am asking for in statute to eliminate the tax increase after three years."

Thought: "I'm going to smack silly the next person who brings up the Johnstown Flood Tax of 1936. It's not my fault it was enacted as a temporary levy to aid victims of a devastating flood and remains on the books 73 years later. And I'm going to be really peeved if anyone mentions that the original 10 percent flood tax on bottles sold in state liquor stores now stands at 18 percent. It increased twice during the 1960s, 40 years after the water in Johnstown receded."

--Said: "The simple truth is we have no good choices."

Thought: "I probably should have done more than just skim that 2007 Reason Foundation study that estimated we could rake in $1.7 billion just by selling the state liquor store system."

--Said: "The fairest plan is to spread the pain across the board and let our economic recovery begin."

Thought: "Thankfully, once I resolve the budget crisis with another tax hike, my wife and I will be able to comfortably endure our pain at our summer house in New Jersey."

Newstex ID: 35807417