Friday, May 7, 2010

North Hills Republican Says .3% Tax DOA

This week, Pittsburgh Mayor Luke Ravenstahl proposed an income tax on anyone who works in the city. The.3% tax would be used to keep the city’s pension program as part of a package of options to help right the city's underfunded pension system. State Representative Mike Turzai of Bradford Woods says there is no chance the tax will ever be enacted. Before the city could collect the tax it must be approved by the state legislature and Turzai says there is no support from either side of the aisle. “It’s a non starter,” says Turzai. The Republican Lawmakers says the legislature will consider new revenues for the city but only after the pension system is reformed. Truzai says he city needs to look at the making cuts, privatization and using a more private sector type model “but a percentage tax will never be allowed,” says Turzai.

Ravenstahl says the tax is part of a larger reform effort. The tax would replace the $52 annual local services tax. The city must shore up the pension fund and find a way to sustain it by the end of the year to prevent the state from taking over the plan.

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