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Budget Impasse Has Legislators Seeing Red

11/19/2015

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We still do not have a state budget, but that does not mean that there is no chatter at the capitol. A significant budgetary shortfall combined with the financial effects of the impasse has legislators seeing red ink in the state budget. Budget cuts are not on the table. Republicans in both the House and the Senate recognize the need for enhancing revenues, and the next few weeks will be crucial in how those revenues are developed. 


The following taxes are being strongly considered to generate sagging revenues:


• Increase of the Sales and Use Tax and a broadening of that tax base,


• Elimination of the vendors sales tax allowance, and


• Cigarette tax increase along with new taxes on other tobacco products (OTP) and e-cigarettes. 


PFMA members are reminded to keep in continual contact with their Pennsylvania representatives and senators to encourage them to resist these tax measures. There will soon come a time when legislators and the Governor will come to an agreement, and their decisions on revenue generation will come down to input from their constituents. Your grass roots participation is necessary to prevent these devastating taxes.
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