Republicans withdraw from discussions in opposition to tax increase proposals
More than two weeks ago the Pennsylvania legislature passed a massive $32 billion state budget with a $2 billion deficit and no funding legislation to back it. The plan was that after a short recess politicians tasked with negotiating the funding package would return to hammer out ways and means to provide the necessary state revenue.
However, it appeared this week that agreement is proving hard to achieve on various proposals, some of which include increased borrowing, new revenue through gambling expansion (including online gambling and DFS), and the prospect of imposing more taxation on state residents.
Although no official statement has been made, it appears from local media reports that it the latter which has proved to be a major source of argument, leading to the Republican representatives at the negotiations withdrawing this week, causing further delay and uncertainty.
Another issue on which lawmakers are divided is the inclusion of Video Gaming Terminals in entertainment venues, a proposal that has been attached to the gambling expansion element in the funding package.
Some unofficial sources indicate that whilst there is in general consensus on the gambling expansion provisions, it does not extend to VGTs, which may have to be dropped.
One editorial summed up the situation, opining that lawmakers have two choices – reduce spending further or look elsewhere for reliable and ongoing sources of revenue.
Online Casino News Courtesy of Infopowa
