Guess who's going to pay in Pa. budget deal?

It only took five months, but it looks like the powers that be in Harrisburg are closing in on a budget deal.

Here's a stunner: Guess who's going to pay? You are.

Gov. Tom Wolf's plea for an extraction tax on natural gas is apparently out the window.

This after he was elected on a platform that largely banked on this new tax to fuel large increases in education spending, much of which he wanted to restore funds cut for a variety of reasons during Tom Corbett's four years in the governor's mansion.

The plan calls for an increase in the state sales tax, from 6 percent to 7.25 percent, a 21 percent hike. That is supposed to generate $2 billion to enact property tax relief.

Meanwhile at the two ends of the state, Philadelphia and Pittsburgh, they will be paying even more, with Philly's sales tax going from 8 percent to 9.25 percent, and Allegheny County going to 8.25 percent, up from the current 7 percent.

There is also a plan to divert $500 million from slot machine gambling operations into a new fund to pay for public employee pension obligations. This is the pool of money that is currently being used for property tax relief. I imagine that money will be replaced by the sales tax hike.

So for now natural gas companies avoid the new tax that Wolf had trumpeted again and again. You know, what with Pennsylvania being the only natural gas state that does not levy such a tax. The "impact fee" put in place by Corbett will remain.

You can get all the details here.

Get out your wallets, folks.

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