Plan to tax multi-national companies will result in multi-year litigation

Watch Smith’s video comments: http://media2.pahousegop.com/Generator.asp?videoname=572520225.wmv

HARRISBURG – House Republican Leader Sam Smith (R-Jefferson County) expressed some concern at the transportation funding proposal put forth by the Rendell Administration today. They unveiled their plan to raise $1 billion in taxes and fees to address the revenue shortfall created by the federal tolling rejection. Smith released the following statement:

“No one questions that Pennsylvania’s roads and bridges need repaired after seven and a half years of neglect, but the administration has not proposed any further cost-saving proposals like public-private partnerships, rolling the Turnpike Commission into PennDOT, or reversing its earlier decision to change the definition of maintenance, which has resulted in inflated costs for local government road projects,” Smith said. “The Oil Company Profits Tax will cost Pennsylvania drivers one way or another; it is ludicrous for anyone to think it will be ‘free’ money.”

“The House Republican Caucus has been willing to deal with varied transportation issues since 2004 when the public transit funding ‘crisis’ was created.

“House Republicans have long advocated long-term funding solutions, which include public-private partnerships, cost-cutting measures, ensuring adequate local funding, requiring transit riders to pay their fair share, and considering competitive contracting to help contain costs in the future.”