Rep. Doug Reichley (R-Berks/Lehigh), Republican vice chairman of the House Appropriations Committee, issued the following statement in response to news that the state Personal Income Tax (PIT) is no longer the focus of budget negotiations in Harrisburg:

"The voices of the taxpayers and legislators from both parties opposing this PIT increase are finally being heard. Developments today indicate that budget negotiators are backing off their insistence that the 16 percent PIT increase be the crux of negotiations.

"Republicans have been fighting for weeks to remove this $1.5 billion a year tax increase from the negotiating table and we are seeing some wiggle room because House Democrats are not finding the votes within their own caucus in support of this.

"We are also seeing some Republican ideas being incorporated into discussions that would enable passage of a budget that does not include the massive increase. Republican resistance to the tax increase has paid off - we have remained unified, and House Democrats are not seeing broad support for this PIT increase among their rank and file. Republicans have remained steadfast and forced the hand of the governor and Democrats to consider alternatives. The PIT should not be the lynchpin of resolving the state's budget crisis.

"Taxpayers deserve some credit too. Their calls to member offices, editorial letters and their comments in e-mails have put the pressure on all House and Senate members to consider alternatives to resolving the impasse. This collective effort has called into question the wisdom of insisting that a PIT increase is the only solution.

"We still have a tough situation to resolve - the state collected $3.25 billion less than it expected to during the last fiscal year - and we still need to fill that budget gap and gaps foreseen in subsequent years, but there are a number of ideas out there that can help to do this without this onerous $4.5 billion tax increase over a three-year period on wage earners and small businesses that pay the Personal Income Tax.

"People are realizing that if they are forced to live on less, government should take notice and cut costs without increasing the financial burden on taxpayers."