POLITICAL NOTEBOOK
Legislation to repeal the 5 percent gross receipts tax on wireless phone services was passed last week by the Pennsylvania House of Representatives, said
state Rep. Brian Ellis, R-11th, who has advocated the bill."With the repeal of this tax, it is estimated that Pennsylvania's consumers will save an extra $356 million each year," Ellis said.Pennsylvania has one of the highest cell phone taxes in the nation at 11 percent. The gross receipts tax, enacted in December 2003, comprises 5 percent, and the remaining is the 6 percent sales and use tax.When the local, state and federal taxes are added together, Pennsylvania's rate is 19.05 percent, making it the eighth highest in the nation, Ellis said."When Butler County residents heard of this legislation, I received several calls and e-mails conveying support for the repeal of this tax," he said.Ellis said businesses would also benefit since cell phones are a tool that many of their employees use.The bill now moves to the Senate for consideration.Seeking to preserve tax cuts for middle class American families,
U.S. Rep. Phil English, R-3rd, last week voted to pass the Stealth Tax Relief Act of 2005.The measure, approved 414-4 by the House of Representatives, would ensure the tax cuts implemented over the past four years would not be undermined by the Alternative Minimum Tax."There is no dispute that President Bush's tax cuts have helped families cope with economic uncertainties and played a significant role in stimulating the economic growth we are seeing now," said English, a member of the House Ways and Means Committee, which has jurisdiction over tax issues."But if we don't act now to give tax payers another year of reprieve, the AMT will suddenly appear and 11 million taxpayers will be hit with an average tax increase of $1,520."The Alternative Minimum Tax was enacted in 1986 as a stop-gap measure to ensure that wealthy individuals do not dodge their tax obligations. But, the dollar amount triggering the AMT rate was never adjusted for inflation, so more and more individuals are being subject to the AMT.By preventing middle class Americans from claiming their exemptions from their tax liability, the AMT punishes families with children or those who live in high tax localities, English said.If Congress does not enact this bill this year, he warned, married couples would see their AMT exemption snap back from $58,000 to $45,000. Single individuals will see their AMT exemption drop from $40,250 to $33,750.
State Rep. Frank LaGrotta, D-10th, is ramping up his efforts to raise the minimum wage in Pennsylvania, and says a bill to do so could come up for a vote soon."It's past time to raise the minimum wage, and every day we wait is another day that thousands of minimum wage earners live below the federal poverty level," the 10-term legislator said.LaGrotta has joined with two dozen Democrats to sign a discharge resolution — a rarely used parliamentary maneuver that allows members to bring a bill that is stuck in committee up to the floor of the House of Representatives for a vote.LaGrotta said it was necessary to do this because Republicans, who are in the majority and control what bills come out of committee, were not acting to move the bill.The legislation would raise Pennsylvania's minimum wage to $7.15 an hour by January 2007, with annual cost-of-living increases each year after that.
U.S. Rep. Melissa Hart, R-4th, last week joined a coalition of employers and unions in urging leadership in the House of Representatives to save workers' pensions.The Pension Protection Act of 2005, which has passed both the House Ways and Means Committee and the House Education and Workforce Committee, would ensure corporations maintain the health of employee pension plans and give employees more access to information about their company's plans."This legislation should be addressed as soon as possible," she said. "It ensures that companies keep the promise they make to employees regarding their retirement and outlaws executives exiting companies with multi-million-dollar golden parachutes while rank-and-file employees have their retirement thrown into chaos."Hart joined hundreds of unions and employee groups in a Dec. 7 letter calling for swift action on the Pension Protection Act of 2005.Hart noted rules managing pensions have left the Pension Benefit Guaranty Corp., a government entity which insures failed pensions, with a record deficit of $23 billion in 2004.Under the Pension Protection Act of 2005, employers must fund up to 100 percent of their pension liabilities. If the company's assets are insufficient to cover liabilities, the shortfall must be filled within seven years. Current law gives companies up to 30 years.Legislation sponsored by
state Sen. Bob Robbins, R-50, that would make the Pennsylvania Construction Code more flexible was unanimously passed by the Senate last week.Robbins said he introduced the bill after some businesses planning to expand are being required by the Department of Labor and Industry to bring their current facility up to the present building code prior to expanding.For these businesses, Robbins said, remodeling their current facilities is cost prohibitive.The senator's measure would amend the state Construction Code by providing such businesses an opportunity to obtain an occupancy permit if they meet several common sense safety requirements. They would then be exempt from having to bring their building up to the Construction Code.The bill now heads to the House of Representatives.