House Co-Sponsorship Memoranda

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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted:	June 13, 2013 12:43 PM
From:	Representative Paul I. Clymer
To:	All House members
Subject:	Tax Rates for Table Games

We have heard from numerous sources that many of the line items in the proposed 2013-14 General Fund Budget are underfunded. While I may have a different view on the issue, I thought how can we increase state revenue to provide additional revenue for those critics? Here is my plan: In 2004, when we passed the slots bill, the slot licenses never received their full value. As a result, conservatively speaking, an additional $1.6 billion was never realized due to the legislative process. During the last round, to extend gambling (poker, blackjack, roulette and dice), the casino industry set the 12 percent tax rate with no analytical rationalization, justification, or economic analysis on table games’ tax rates. Twelve percent is the lowest tax rate of all monopoly states. My proposal puts Pennsylvania in line with other states by appropriately increasing the 12 and 14 percent tax rates established under Act 1 to a tax rate of 16 and 18 percent, respectively. These rates are more in line with the tax rates of all monopoly states. Each percentage brings in an additional $7.5 million or a total of $15 million for a 2 percent increase. This revenue generating measure will be part of a solution to those seeking to raise more revenue and takes into account the wallets of hardworking families who are unable to bear the burden of increased taxes. Please join me in cosponsoring this legislation.

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