Governor’s actions signal unreasonable demand for unnecessary tax hikes
HARRISBURG – Speaker
of the House Mike Turzai (R-Allegheny) and many House Republican
colleagues joined together today to condemn Gov. Tom Wolf for his veto
of House Bill 466, the liquor privatization measure that would increase
revenues for the state without raising taxes on Pennsylvania’s workers,
families and businesses.
“Liquor
privatization provides freedom and convenience for consumers, revenues
for the state, an end to an inherent conflict of interest, a return of
government to its core functions and a vital path to moving Pennsylvania
into the 21st century,” said Turzai. “By vetoing this bill
and denying a broad-based, bipartisan-supported measure, the governor
has signaled clearly that his policies have very little to do with what
the people want and everything to do with protecting a small segment of
special interests.”
Wolf has
continually campaigned for a government that works, though part of that
scheme requires demanding more than $12 billion dollars in tax increases
over the next two years, all placed on the backs of taxpayers.
The Republican
House and Senate budget that didn’t raise taxes included the divestiture
of the state’s Prohibition-era total monopoly over the wholesale and
retail sale of both wine and spirits – one of only two states (Utah) to
have such control over how its citizens consume the commodities, said
Turzai.
“It is
very disappointing that the governor is choosing taxes over new and
recurring revenues which could be used for our schools and human
services,” said House Majority Leader Dave Reed (R-Indiana). “This
historic legislation provided more than $220 million this year and
recurring revenue without raising taxes. Our constituents are for
selling the state stores; they do not support raising taxes for higher
spending.”
“A government that
works is continually evaluating and re-evaluating existing programs and
spending to make sure all programs are achieving the intended results,”
said House Appropriations Chairman William F. Adolph Jr. (R-Delaware). “We
were able to balance this budget by adopting such efficiencies and
generating new revenues by moving Pennsylvania into the present by
privatizing our archaic liquor system and not by relying on the billions
of dollars of tax increases the governor proposed in his budget.
Some of this new
revenue would come from the ending of “border bleed” – the estimated
$300 million worth of wine and spirits that Pennsylvanians purchase out
of state each year.
“This bill provided
three times more revenue for the state than the current system does and
would create many new family-sustaining jobs throughout the
Commonwealth.” said Liquor Control Committee Chairman Chris Ross
(R-Chester).
The governor’s refusal to move Pennsylvania into the 21st century raises many questions.
“Our liquor system is a blue ribbon example of status quo policy and protecting special interests,” said Rep. Seth Grove (R-York). “With
the veto of liquor privatization, Gov. Wolf is maintaining the status
quo and protecting his special interest friends. Today is a sad day for
those of us who fight for change in Harrisburg every day. Keeping the
status quo is unacceptable and maintains a system which is failing
Pennsylvanians."
According to the Department of State’s web site, the United
Food and Commercial Workers (UFCW) 1776, whose members work at the
government’s total monopoly of more than 600 wine and spirits stores,
contributed $180,000, including in-kind donations, directly to Wolf’s
campaign. Its national affiliate contributed overall $394,930 in
Political Action Committee funding to Pennsylvania state campaigns in
the 2013-14 campaign cycle.
The governor has demanded modernization of the current system and status quo for the UFCW.
“The government has no
business whatsoever selling liquor,” said Rep. Mike Regan
(R-York/Cumberland). “This is for private enterprise, on which America
was founded. It is frustrating that Gov. Wolf has decided to put the
desires of special interests ahead of what Pennsylvanians want.”
“Modernization
is tantamount to installing screen doors on submarines,” said Turzai.
“It’s absurd to think government can run any business better than the
private sector, and prolonging this antiquated practice is a slap in the
face to consumers and taxpayers.”
“By its own
convoluted design, the Pennsylvania Liquor Control Board inherently
operates under a conflict of interest that designates the agency as both
purveyor of promoting and selling alcohol, all while regulating and
enforcing laws at the same time,” said House Majority Whip Bryan Cutler
(R-Lancaster).
“We had an
historic opportunity to raise new revenue, not raise taxes on our
families and to get rid of this insane conflict of interest that sees
Pennsylvanians burning tax dollars on both sides of the market in order
to maintain a state-run monopoly,” said Cutler. “This veto will be
disappointing to Pennsylvanians from many differing political
viewpoints.”
Pennsylvanians
have overwhelming supported getting rid of the conflict, which clearly
does not benefit them in choice, prices or convenience. According to an
FM3 poll conducted on the issue, support transcended political
affiliation, gender, region, and even union membership. It found that
consumers who make purchases at the state stores most often favor change
by more than 70 percent.
“Fully
two-thirds of Pennsylvanians want to see wine and spirits sold in
privately owned stores,” said Ross. “We will continue to keep working to
give them what they want.”
“It
is disappointing that Gov. Wolf is overlooking the will of the
residents of this Commonwealth,” said Rep. Mike Reese
(R-Somerset/Westmoreland). “He is standing with partisan ideologies
rather than standing with the many Pennsylvanians who believe the retail
sale of wine and spirits is not a core function of government.
“Furthermore, Gov.
Wolf’s rhetoric for his veto cites reasons that have been refuted over
and over again. It’s contemptuous that he feels he knows what is better
for Pennsylvania’s citizens rather than act on what a majority of
responsible adults prefer,” Reese added.
