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Rejection of tax increase puts pressure on Gov. Wolf

Monday’s unanimous House rejection of Gov. Tom Wolf’s proposed tax increases obviously disappointed the governor. Democrats and Republicans, for very different reasons, voted 193-0 against the proposed $12.7 billion net increase.

If the outcome surprised Wolf, then he is either politically naive or overly optimistic — maybe both — about the Legislature and its budget process.

But five months into his first term and only four weeks until the state budget deadline, pressure is growing on Wolf to persuade the Legislature to back his initiatives or hammer out a plan they can support.

Monday’s vote went down like this:

Republicans introduced the current year’s budget to meet advance-notice rules in the annual budget process. The budget deadline is June 30. They attached to it their own tax amendment — a verbatim copy of Wolf’s own proposal which includes higher taxes on retail sales, personal income and drilling in the Marcellus Shale natural gas formation.

Republicans contend the tax increases amount to $12.7 billion over the next two years, although some of that increase will cover local property tax cuts.

Democrats countered with an amendment of their own — Wolf’s proposed budget — in an attempt to demonstrate that previous Republican budgets are to blame for a growing state deficit.

“In a year when the economy has turned around, unemployment has come down, we are running a huge deficit,” said Rep. Joe Markosek, D-Allegheny, the Appropriations Committee’s ranking Democrat. “It’s not because the people in Pennsylvania aren’t doing well, it’s because of the past budgets that are basically phony that we ended up in the situation that we are in now. It didn’t work. And here we are today, doing the same thing.”

Markosek’s point is valid. Wolf’s predecessor, Republican Gov. Tom Corbett, lost the 2014 election partly on a budget that was widely criticized for accounting gimmicks and one-time account transfers. Wolf spokesman Jeffrey Sheridan says the governor “inherited a $2.3 billion deficit, woefully underfunded schools, a stagnant economy, and families across the commonwealth ... struggling with high property taxes” as a result.

But none of that mattered when the GOP majority set aside Markosek’s amendment and instead brought up the Wolf tax package, and its unanimous defeat.

The governor’s response was predictable. He called it “gamesmanship” and an attempt to “see if we can embarrass the administration.”

The governor is right: It was gamesmanship, and it was intended to embarrass him.

Yet the question remains: what’s he going to do about it?

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