The Associated Press reported Wednesday Gov. Corbett has decided to roll out his proposed transportation funding plan on February 5 with the budget, rather than go ahead with a special announcement.

Corbett’s comments came during an interview with the Philadelphia Inquirer editorial board where he talked about school funding, pension reform and funding his transportation plan by uncapping the wholesale tax on gasoline and diesel fuel under the Oil Company Franchise Tax.

Corbett again said he did not think the full costs of the tax would be passed on to motorists and said his Administration is still looking at the issue of prohibiting companies from charging motorists for the tax.

When Gov. Rendell proposed a similar provision, then Attorney General Corbett issued an opinion saying prohibiting companies from passing along the increase was unconstitutional.

Petroleum distributors have estimated uncapping the wholesale tax will increase the price of gasoline by 28 cents and diesel fuel by 33 cents per gallon.

To say a tax increase of this size will not be passed along to the public is wishful thinking.

It’s A Tax

Capitolwire.com reported Monday Gov. Corbett’s plan to lift the cap on the wholesale tax on gasoline and diesel fuel under the Oil Company Franchise Tax to fund his proposed $1.85 bill transportation plan will violate his 2010 pledge to Grover Norquist and voters to not raise taxes.

Patrick M. Gleason of Norquist’s Americans for Tax Reform, told Capitolwire, “It's a clear tax increase whose burden will be borne by consumers, not companies. Unless offset, it is a blatant violation of the pledge that he made to Pennsylvania taxpayers. “

Since the point of the cap-lifting is to raise more than $1.85 billion – in a couple of stages over a couple of years, while the state gets projects shovel-ready – no offsetting tax cuts are planned to accompany the cap-lifting, state officials confirmed to Capitolwire.

Now the Governor’s spokesman, Kevin Harley is saying there has been no public statement by any administration official confirming the governor would lift the tax cap.  But, according to Capitolwire, there have been private ones.

Gleason said raising the cap would be the third time, by their count, Gov. Corbett violated his no tax pledge.  The first time was an initiative by the Corbett Administration to ensure residents paid sales tax on items they bought online.  The second was imposing the Marcellus Shale drilling fee last year.

NewsClips:

Much At Stake For Corbett’s Budget Address

Corbett Will Roll Out Transportation Funding Plan Feb. 5

Corbett: Education Funding Tied To Pension Savings

Battle Lines Taking Shape Over Highway Funding Bill

Baer: Corbett’s New Year Goals Pave Way For Re-Election

Editorial: Governor’s Ready For Road Funding Plan Decision

Lawmakers Poised To Work On Transportation Plan

Column: Corbett’s Gasoline Untax May Raise $1.85 Billion

Editorial: Corbett Tax Increase Not A Good Idea In A Recession

Editorial: Governor’s Ready For Road Funding Plan Decision

Editorial: State Should Regulate Pay At Nonprofits

Corbett: Education Funding Tied To Pension Savings

1/28/2013