Tax plan could scuttle budget deal in Harrisburg

Remember that 'broad framework' for an agreement to end the six-month-old Pennsylvania budget stalemate.

Not so fast.

The deal is predicated on an increase in the state sales tax to fund property tax relief.

Now, it turns out Republican leaders don't think they have the votes to deliver the tax hike. And this comes after Gov. Tom Wolf's hopes for a hike in the income tax, as well as a new levy on natural gas operations in the state.

Neither one of those are included in the new budget deal.

Now it turns out there may not be the stomach in the Legislature to increase the sales tax, from the current 6 percent to 7.25 percent. The sales tax is probably the most regressive tax, and usually takes a much bigger toll on those who can least afford it, the poor.

All of this comes at the same time the Senate today may vote on a bill that would eliminate property taxes altogether. The hook for that plan is increases in both the sales and income taxes in exchange for elimination of the property tax.

I don't think that is going to happen either.

Which leaves us right where we've been for months in Harrisburg.

Nowhere.

We'll keep you up to the minute in the latest budget shenanigans.

Comments