PA Gov. Corbett: Congress should raise taxes

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Gov. Tom Corbett

Congress will have to raise taxes, Pennsylvania Gov. Tom Corbett said this morning, making him the latest prominent Republican to repudiate the no-new-taxes pledge.

"I don't think they can resolve it without increasing some taxes," Corbett told Bloomberg's Erik Schatzker in this program on Bloomberg TV.

"They have to counteract it with entitlement reform," he quickly added.

Otherwise, “every state is going to be affected" with cuts to military contracts and spending for special education, senior citizens, poor mothers and other basic programs.

Corbett seemed comfortable with limiting charitable deductions: "A lot of people" will still give generously.

He acknowledged Pennsylvania is saddled with public-worker pension funds that are too small to meet future pensions without growing taxpayer subsidies, thanks to "mistakes made in the past," and left the door open for additional limits on the state's generous plans for retired legislators, teachers, judges, state college professors and state police, though he didn't say how those future limits will help meet current obligations.

Will he boost state taxes? "We're trying to grow it without higher taxes," though he acknowledged the state's economic growth lags.

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