Penn. small businesses 'biggest loser' in proposed budget, NFIB says
The budget includes a $33.8 billion spending plan, which is about 16 percent higher than current fiscal year spending. Kevin Shivers, executive state director of NFIB/PA said the budget plan raises taxes on small businesses, but doesn't address the state's pension issue.
“For small businesses, this budget can be expressed using a simple formula: High costs plus complexity equals cutbacks,” Shivers said. “The state incurs billions of dollars in new debt, including risky pension obligation bonds, without tackling the actual causes of our state pension crisis. The plan also raises taxes on job creators to fund corporate-welfare programs that benefit only a select few.”
Shivers added Wolf proposed a 21 percent increase in the personal income tax, which will affect small business owners the most, and said about 80 percent of businesses report earnings on individual returns of their owners.
“The natural gas extraction tax affects many small companies that have flourished around the drilling sites – like water companies, trucking companies, hotels and restaurants,” Shivers said. “Worse still, a portion of the tax on natural gas extraction would be used to prop up competitors in less successful energy industries.”