DREXEL HILL, PA - Pat Meehan, the Republican candidate for Congress in Pennsylvania's 7th District, today issued the following statement in response to Governor Ed Rendell's desire to raise taxes to close Pennsylvania's $850 million budget shortfall. Rendell proposed ending a program that provides retailers with a one percent rebate on the sales taxes they collect to cover their administrative costs, a move that would amount to a more than $70 million tax increase on businesses, among other tax hikes.  

"Raising taxes on businesses during a recession is exactly the wrong way to close Pennsylvania's budget shortfall," said Meehan.  "Businesses are operating on razor-thin margins and this tax hike will hit businesses at a time when they are already struggling to survive. But instead of making difficult choices on spending cuts, Harrisburg is choosing to shift the burden of its own irresponsibility to Pennsylvania's retailers."

Meehan noted that his opponent, state legislator Bryan Lentz, has already supported the governor's proposals to increase taxes on Pennsylvania retailers as a member of the House Appropriations Committee. Lentz has already voted for more than $500 million in tax increases since he took office in 2006.

"Representative Lentz voted against a bill to limit state spending and instead voted for spending increases," said Meehan.  "The question every voter should be asking is, will Bryan Lentz stand with taxpayers and oppose the governor's tax increases or will he vote to punish Pennsylvania's businesses for Harrisburg's inability to curb spending?" 

Meehan also noted a factsheet released by QVC, a national retailer headquartered within the 7th Congressional District, urging elected officials to oppose Rendell's tax increases. West Chester-based QVC employs 4,000 Pennsylvanians and remitted approximately $19 million in sales tax in Pennsylvania alone.  

"QVC is a perfect example of a business that will suffer under the governor's tax increases. Money that could be used to hire more employees and create jobs will instead be used to pay for Harrisburg's out-of-control spending," said Meehan. "The governor's proposal will kill jobs within the 7th District and voters deserve to know if Representative Lentz supports these tax increases."