Pennsylvania Chamber of Business and Industry President and CEO Gene Barr issued a statement Tuesday expressing opposition to Gov. Tom Wolf’s proposals to double Pennsylvania’s minimum wage to $15, expand overtime eligibility, and impose a severance tax on the natural gas industry to fund infrastructure projects.
“The governor’s proposal to more than double the current minimum wage rate will increase labor costs and lead to further job loss,” Barr said. “A recent report by the nonpartisan Congressional Budget Office found that a $15 minimum wage could lead to as many as 3.7 million lost jobs.”
“Additionally, the proposal to significantly expand overtime eligibility has prompted strong opposition among employers – particularly nonprofits, educational institutions and small businesses who cannot afford this dramatic expansion and would be forced to convert salaried employees into hourly positions so hours can be closely monitored and overtime avoided,” Barr said.
Barr noted that the Chamber believes that Senate Bill 79 represents a compromise on minimum wage and overtime issues.
“We believe S.B. 79 represents such a compromise by maintaining the status quo related to overtime eligibility, enacting important regulatory reform related to overtime and a more manageable increase to the state’s minimum wage,” Barr said. “While we have long opposed government mandated increases to entry-level wages, the minimum wage section of S.B. 79 is structured in a way that mitigates the negative impact on businesses.”
Barr also commented on the severance tax that Wolf proposed to fund the $4.5 billion Restore Pennsylvania initiative, which would fund infrastructure projects including expanding high-speed internet access, redeveloping blighted areas, and improving storm preparedness. Wolf announced Tuesday his plans to renew his push for the proposal.
“In regard to continued calls for a severance tax, an additional punitive tax on the energy industry will further exacerbate the market downturn – which has led to a projected 21 percent reduction in impact tax collections this year, a decrease in the number of active rigs operating in the state and some companies making the difficult decision to lay off employees and some deciding to stop drilling in the Commonwealth altogether,” Barr said. “One of Pennsylvania’s greatest advantages is our affordable and accessible energy supply. However, we are at risk of losing this competitive edge if state elected officials continue to target this industry to pay for additional government spending. As we have seen this year, capital is fluid and companies will move out of the state if the conditions are not right to be profitable.”
“Rather than enact policies that will negatively impact opportunities for economic growth and job creation within the state’s critical energy sector, we encourage policymakers to pursue smart public policies that will leverage our assets into greater opportunity for all Pennsylvanians,” Barr concluded.