Adjust Text Size
For Immediate Release
June 21, 2010
Contact: David Atkinson
717-787-6535
 

Tax Amnesty Revenue Will Help With State Budget Problem 

Senator Lloyd Smucker said his private business experience convinced him that Pennsylvania should pursue a tax amnesty effort, and the reported $261 million collected shows the effort was well worth it.  The better-than-expected result is one of the few bits of good revenue news state government has experienced over the past two years, he observed. 

"There was an important principle behind our push for a tax amnesty program.  With the state facing a severe revenue shortfall, and with many families still suffering from the poor economy, Pennsylvania needed to undertake an aggressive effort to collect taxes owed, instead of just increasing taxes," Smucker stated.  "As it turns out, this effort not only filled a hole in the current state budget, but it adds some badly-needed revenue for the upcoming budget." 

He pointed out there is a firm basis and clear intention for going after those who owe back taxes and failed to take advantage of the amnesty period.  "An added benefit is there will now be a more intensive effort to collect back taxes, which will bring in more revenue and likely boost tax compliance by individuals and businesses." 

Smucker said the tax amnesty program was well-designed, featuring incentives derived from the experience of Pennsylvania’s last effort during the 1990s, and more recent experience in other states.  "Once the Rendell Administration was on board, they executed the plan to good effect.  The Governor brought it up a lot at public events, and that undoubtedly helped improve the result," he noted. 

Smucker introduced tax amnesty legislation early in the last budget process, to generate support for including the concept in the final state budget.