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Rendell To Prevent Employee Layoffs With Increased Taxes

HARRISBURG - Governor Ed Rendell is proposing to limit employee layoffs by raising taxes.

Rendell announced Monday he must take action in order to fill the state's billion-dollar budget hole.

His comments follow news of a 12% decline in tax collections last month.

Rendell is proposing legislators tax cigars, smokeless tobacco and natural gas extraction.

However, he and lawmakers have not yet began formal budget negotiations ahead of the new fiscal year, which starts July 1st.

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