POLITICAL NOTEBOOK
The state Senate last week adopted a resolution by state Sen.
Bob Robbins, R-50th, that urges Pennsylvania's congressional delegation to support measures to repeal the REAL ID Act.The REAL ID Act creates a national identification card by mandating federal standards for state driver's licenses and identification cards and requires states to share their motor vehicle databases.Robbins' measure seeks to bar or at least delay the federal law from taking effect until funds are available to cover the costs of doing this and an amendment is made to preserve essential civil rights.Under the federal law, states must implement the Real ID Act by May 11, 2008."While I support federal efforts to prevent additional terrorist attacks on our country, I have concerns with several issues in this act," Robbins said."The machine-readable information on the cards could contain errors and false information which would create hardships for those who use this federally-approved ID card."In addition, this sensitive information could also put undercover law enforcement personnel at risk or endanger victims of crimes such as domestic violence, stalking, or criminal harassment."The Real ID Act is projected to cost Pennsylvania as much as $100 million to implement.———State Reps.
Mike Turzai, R-28th, and Tom Quigley, R-Montgomery, recently announced the introduction of legislation that would reduce the state personal income tax.The bill seeks to lower the income tax from the current rate of 3.07 percent to 2.99 percent."We must control government spending and protect hard-earned tax payer dollars,"Turzai said. "People deserve to spend their hard-earned money how they see fit, rather than having it used to fund Gov.
(Ed) Rendell's pet projects."In 2003 Rendell increased the this tax from 2.8 percent to the current rate.Since April, Turzai noted, the state has collected a $215 million surplus in tax revenue. This brings total state surplus revenues to $502 million for theReducing the PIT to 2.99 percent, he said, would save Pennsylvania taxpayers about $270 million annually.———State Sen.
Mary Jo White, R-21st, praised the state Senate for passing legislation to continue funding for hazardous sites cleanup.Under the measure, the Hazardous Sites Cleanup Fund would receive about $40 million annually from revenue generated by the existing Realty Transfer Tax.White noted passage of the bill seeks to avoid the need to adopt Gov.
Ed Rendell's proposed increase of the waste disposal tax on Pennsylvania residents and businesses.Additionally, White said the Department of Environmental Protection relies on the program to pay over 250 employees associated with its Hazardous Sites Cleanup Program.The DEPhas advised the General Assembly that, absent a new source of funding, the agency would need to furlough these employees soon.———U.S. Rep.
Phil English, R-3rd, announced this week his support of legislation he said would boost economic development, promote job growth and revitalize local communities in Western Pennsylvania.It would allow municipal bonds backed by letters of credit issued by Federal Home Loan Banks to be tax exempt."Municipal bonds have long been used as a critical tool for economic development in communities fighting to attract and retain well paying jobs at a local level," said English, a member of the House Ways and Means Committee, which has jurisdiction over tax policy."By closing an existing loophole in the tax code, my proposal will increase access to capital for municipalities, just like Erie, helping to bolster our area's economic growth and stimulate job creation."Under current law, state and local governments are able to issue tax-exempt bonds to help fund community and economic development projects.To ensure that bond investors will be paid in full, Federal Home Loan Banks provide a credit enhancement known as a letter of credit.The Internal Revenue Service has classified the bank's letter of credit as a federal guarantee, triggering the loss of the bonds' tax-exempt status.