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HARRISBURG, Pa. (AP) -- Business groups warned Tuesday that a state Senate-passed proposal to increase energy taxes will hurt the industry's competitive standing, trigger higher bills for consumers and frighten away investment.
The groups said the proposal will be borne disproportionately by manufacturers that purchase large amounts of energy and argued that tax increases by way of consumers' utility bills lack transparency.
Gene Barr, president of the Pennsylvania Chamber of Business and Industry, urged lawmakers to avoid "business-to-business" taxes and said they should try to "spread the burden more evenly."
He sidestepped a question about what alternative approach he would endorse.
"We would just simply encourage them to look at being very cautious about what you do," he said, adding that any additional revenues should be accompanied by measures to address civil litigation rules, wider tax issues and labor rights.
"We get the problems that this commonwealth has, we certainly understand that," Barr told reporters. "What we're looking at today is not the result of what happened last month or last year."
In response, Senate GOP lawyer Drew Crompton said businesses should want the state to be on strong financial footing so that it can attract new investment.
"It is easy to live in special interest echo chambers, but each of these groups rely heavily on state services, and the commonwealth needs appropriate revenue to supply these services, be it roads and bridges, permit reviews, and a whole host of other services," Crompton said.
He said Senate Republican leaders have supported other proposals that business groups support, including pipelines and changes to the gas drilling permit process and business tax cuts.