Pandemic worst time to raise taxes, legislators say

Feb. 6—The worst time to propose tax increases — especially on businesses — is during the COVID-19 pandemic, local legislators said Friday morning.

The Manufacturers and Employers Association had its semiannual legislative forum virtually Friday on Zoom, and said after the struggles small businesses have suffered during the pandemic, this is the worst time to raise their taxes.

"The governor is living in an alternate universe where he thinks this is a good idea, raising taxes, especially after the year he has put Pennsylvania through," said freshman State Rep. Joe Kerwin, R-125, Lykens.

State Sen. John Gordner, R-27, Berwick, said $150 million in excess workers compensation funds are going to the hospitality industry hardest hit by the pandemic — restaurants, theaters and local breweries.

Gordner said Wolf's "whole budget document is worthless because of the multiple tax increases baked into it. A 46% increase in personal income tax will hit large manufacturers and small businesses. Every line item is unrealistic. That's $3 billion in new spending. It will be thrown out. The Senate and House appropriations committee will have a lot of work."

State Rep. Doyle Heffley, R-122, Lower Towamensing Twp., said language was put into Senate Bill 109 that will not tax Paycheck Protection Program funds.

The area's other freshman legislator, State Rep. Tim Twardzik, R-125, Butler Twp. (Schuylkill County), said taking money out of the unemployment compensation fund to help restaurants beleaguered by the pandemic is a necessary evil.

"It teaches one how difficult some of these choices are," said Twardzik, participating in his first forum. "It's wrong to take the money out of an insurance fund, but if we don't fix the problem as soon as we can, we are going to lose 42% of our restaurants that will never open again, and those jobs will disappear."

Twardzik said restaurants had prepared to serve customers over the Thanksgiving and Christmas holidays by purchasing food and liquor, only to be shut down and having to discard all they bought.

"They called the Governor's Office to ask if they would be open for holidays, and they (state officials) said absolutely," Twardzik said. "Then, eight hours later they closed them. Some took loans so employees didn't go home for the holidays without a paycheck."

State Sen. David Argall, R-29, Rush Twp., said a significant element missing from the budget is transportation.

"We have highway improvements promised by this and previous administrations now being take off the table," Argall said. "There was one sentence in budget address about transportation, with no solutions at all.

"He's not just failing us on health, he's not just failing us on transportation. On health, he's eliminating good programs in the budget that have been there for years, like school safety."

State Rep. Jerry Knowles, R-124, Rush Twp., said he "found it fascinating that in his (Wolf's) budget address he did not mention vaccines or vaccinations one time."

Argall said there is disconnect between state and city programs in Philadelphia and Pittsburgh.

"If the Legislature has to change a law to help them do their job better, we stand ready, willing and able to do that," Argall said.

Heffley said it's not just in the state's two biggest cities.

"Pennsylvania is currently ranked 44th out of 50 states when it comes to vaccine distribution," Heffley said. "Our local health care networks and pharmacies are doing a great job getting the vaccines out. However, uncertain guidance and direction from the state Department of Health have caused some initial confusion."

The supply is there, but the distribution is not.

Kerwin — a lieutenant in the Pennsylvania National Guard — said the Guard has been called out to "logistically and medically help get vaccine out."

Gordner said only 32 of 1,200 long-term care facilities — assisted living or personal care homes — have been scheduled or received vaccine, and 150 of 700 nursing homes have not completed their first vaccinations.

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