Possible Increase In State Sales Tax Has Business Community On Edge
By Paul Kurtz
PHILADELPHIA (CBS) -- A proposed increase in the sales tax has emerged as the centerpiece of a possible budget deal between the Pennsylvania Legislature and Governor Wolf.
KYW's Paul Kurtz reports that idea is not sitting well with businesses.
"This might be the least of the evils."
Bernie Dagenais, President and CEO of the Main Line Chamber of Commerce, says both businesses and consumers are going to feel the pain of a 1.25 percent increase in the sales tax.
"It's particularly harmful for businesses that might be along the Delaware border which has no sales tax. So in the Philadelphia region that is going to be a factor for those types of businesses."
Dagenais says the Governor and the legislature are paying the price for mismanagement of the past.
"We weren't able to utilize federal stimulus dollars for one-time costs. Instead of doing that we used it for programmatic funding and schools. That became something that had to be made up. We also spent too much on pensions over the years and became overly generous on our pensions. After a while those things are going to catch up to you."
But, says Dagenais, we need a budget. At some point Wolf and his Republican opponents will have to hold their noses and shake hands on a deal.
