Governor and Key Legislators Address
PICPA Members

Gov. Rendell addressing PICPA members.

Sen. Vincent Hughes (center).

CPA-PAC Chairman Peter Barz speaking with Rep. Stephen Stetler.

For the third time in four years, Gov. Edward G. Rendell appeared before PICPA to garner support and answer questions about important legislative issues at a meeting of the CPA-PAC Board and Legislation Committee held Thursday in Harrisburg.

After thanking PICPA for its past support, Rendell ran through the list of his gubernatorial accomplishments and confidently predicted a property tax reform proposal on his desk by mid-February. He supports using an estimated $1 billion of gaming revenue and an increased local earned income tax (EIT) to fund the reform.

Also accepting the PAC Board's invitation was Senate Majority Leader David "Chip" Brightbill (R-Lebanon) who stated that "there is a lot of pressure to be pro reform," but tax reform could only be done through revenue neutral changes. He supports senior citizen rent rebates, an increase in earned income tax, and future referendums to shift from EIT to PIT.

Sen. Vincent Hughes (D-Philadelphia) said that although there is a desire to get something done, he does not anticipate a vote on tax reform before the next election. Hughes supports using gaming revenue to fund the reform. Hughes also commented on the significance of the input from the CPA profession on business and tax bills that are being considered.

Rep. David Argall (R-Schuylkill) also expressed the importance of input from constituents. Also, he said there is discussion of a House Republican Caucus override of the Governor's December veto of House Bill 515, a business tax reform bill.

After lunch Rep. Stephen Stetler (D-York) admitted that the pay raise vote in the summer resonated more than expected, and that will affect the vote on property tax reform. "The fear of not passing a tax reform bill will drive the vote." He also said that the House Democratic Caucus would sustain the Governor's veto of House Bill 515, and reject legislation that increases business taxes.

Every legislator in attendance noted the importance of the next election. More than a dozen incumbents are retiring and not seeking re-election as well as a potentially tight gubernatorial race. They also noted the importance that CPAs get involved in the legislative process, and to let their opinions be heard on issues that impact them and their clients.