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POLITICAL NOTEBOOK

State Sen.

Mary Jo White, R-21st, applauded this week's Commonwealth Court opinion that reverses the 2006 Pennsylvania Utility Commission order allowing the merger between Verizon Communications and MCI.The court sent the order to the PUC to either reject the merger or impose conditions that would provide substantial benefits to consumers.White intervened in the merger proceeding when it was before the PUC in 2005 and requested a public hearing on the issue. The PUC heard testimony regarding the poor quality of phone and Internet service in the area.White advocated the PUC require Verizon-MCI to provide public benefits such as accelerated rural broadband deployment as a condition of the merger.———The state Senate last week gave final approval to legislation co-sponsored by Sen.

Bob Robbins, R-50th, that he said would bring about significant reforms to the Emergency Municipal Services Tax.The first bill approved by the Senate for the 2007-08 legislative session would end the lump-sum maximum payment of $52 and set specific restrictions on how taxing entities may use revenues raised by the levy.The bill is now headed to the House for consideration"As it stands now,"Robbins said, "this tax places an extremely heavy burden on low-income workers."(The legislation) will not affect the funding municipalities receive to help cover the costs for vital services, but it will eliminate the lump-sum payment of up to $52 that took a serious bite out of employee paychecks."The measure would require the tax be withheld on a payroll-period basis with a maximum deduction of $1 per week. It also exempts those earning $12,000 or less per year from the tax.The bill would rename the tax as the "Local Services Tax" and be used for:n Emergency services including police, fire and emergency medical services.n Road construction and maintenance.n Property tax reduction.n Property tax relief through the use of homestead/farmstead exemption.———U.S. Rep.

Phil English, R-3rd, applauded last week's House of Representatives-approved-Small Business Tax Relief Act of 2007.The legislation would extend tax relief to America's small businesses and pave the way for the House and Senate to reach an agreement on legislation to increase the federal minimum wage."I've long argued that a balanced minimum wage bill, which addresses the needs of both workers and small business, has the best chance of being enacted into law," said English, the ranking member of the House Ways and Means Subcommittee on Select Revenue Measures.Earlier this year, the House passed the Fair Minimum Wage Act to increase the current federal minimum wage of $5.15 per hour to $7.25 over a period of two years.But the Senate made it clear that it would block any minimum wage increase that did not include tax relief for small businesses adversely impacted by a federally mandated wage hike for workers.The House measure is slated to serve as the legislative vehicle for the Senate-passed version to increase the minimum wage.English said the Small Business Tax Relief Act of 2007 would provide immediate tax relief for small business owners adjusting to rising costs as a result of hike in the minimum wage.

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