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Rendell Defends Oil Profit Tax Proposal

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Governor Rendell continues to insist that his proposal to tax oil company profits to raise money for roads, bridges and mass transit is a solid idea.

KYW’s Tony Romeo reports Governor Rendell’s proposal to tax oil company profits was a non-starter when he first proposed it several years ago. But that hasn’t stopped him from reviving it as part of a new push for transportation funding.

Senate Republicans and oil industry representatives both question whether Rendell’s plan to enact a law that would prevent the tax from being passed on to consumers through higher gas prices would pass muster in the courts.

The governor disagrees:

“Yeah! Let’s get this in front of a Pennsylvania judge who will decide whether it’s okay for the oil companies – on $5 billion worth of profits – to use loopholes to pay $35 million in taxes.”

The governor also proposes raising vehicle fees. A spokesman for Senate Republican leaders says a transportation funding solution before Rendell leaves office is unlikely.