Budget Negotiations Hinge on Tax Hikes or Stop Gap Measure

With May revenues even worse than anticipated and more than $3 billion deficit immediately on the horizon, the budget focus in Harrisburg has shifted to a possible increase in the personal income tax coupled with a temporary freeze in the phase out of the Capital Stock and Franchise tax. There is also discussion about passing a stop gap budget that doesn’t raise taxes, but makes the necessary cuts to simply keep government running. Neither option is overly appealing to most lawmakers. Stay tuned to the GCAP website for further developments on the state budget.