The Republican- controlled Senate approved a $240 million taxcutting package Monday as a way to help the working poor pay rising bills for food and gas while giving long-term incentives to businesses to invest in Pennsylvania.

But Democrats argued against the Republican-penned bills, saying the cost of the cuts would force program reductions at a time when the state is scrounging for money to support a new budget.

Negotiators are preparing to hammer out an approximately $28 billion budget for the fiscal year that begins July 1, and Republicans said they expect their taxcutting package to be a part of the discussion.

However, Democrats maintained that the tax cuts might be worthy in another year when the state has more cash to spend. The $28.3 billion spending plan proposed by Democratic Gov. Ed Rendell relies on a $400 million cash surplus this year that some see as optimistic at best, meaning legislative negotiators will likely have to cut his programs even before they try to insert their pet projects into the budget.
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