PA Food Merchants Association reacts to Wolf’s new budget proposal.

Gov. Tom Wolf’s most-recent iteration of a state budget proposal could bode well for members of the Pennsylvania Food Merchants Association (PFMA).

The proposed budget would include a half-point increase in the state’s personal income tax and a new extraction tax on natural gas drilling as a solution to end Pennsylvania’s roughly 100-day-old budget impasse. It would not, however, include any increase in Pennsylvania sales tax rate or an expansion of the list of items the sale tax covers as Wolf had previously proposed. The revamped budget also has dropped proposals for higher business and cigarette taxes.

"We appreciate the governor’s willingness, with his recently revised budget plan, to drop the elimination of the vendors’ sales tax allowance, expansion of the sales and use tax, increase of the cigarette tax and new taxes on e-cigarettes and other tobacco products,” PFMA Vice President of External Relations Alex Baloga told Pennsylvania Business Daily.

The Wormleysburg, Pennsylvania-based PFMA represents more than 3,200 retail food stores including convenience stores, supermarkets, independent grocers, wholesalers and consumer product vendors across the commonwealth that employ more than 100,000 Pennsylvanians.

“We believe those proposals would have a negative impact on our members, their employees and their customers," Baloga said.

Wolf believes his new budget proposal will close the deficit and add about $400 million to state coffers for education.

The state House begin debating the vote this morning and could not on it later today. 

Organizations in this Story

Pennsylvania Food Merchants Association

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