In 2004, Governor Rendell pushed through a $1.5 billion tax increase that raised personal income tax rates, business gross receipts taxes, and cigarette taxes. In 2005, the governor proposed a reduction in Pennsylvania’s 10 percent corporate tax rate, but the reduction was not passed. Indeed, the governor reversed course in 2006 and vetoed a bill that would have cut both personal and corporate tax rates. In 2007, he proposed increasing the sales tax rate from 6 to 7percent and imposing a special tax on oil company profits, but the legislature rejected those ideas. On spending, Rendell has supported large increases for transportation, education, alternative energy, and overall general fund spending has increased at a fairly rapid pace.
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