HARRISBURG Dale Kaplan already faces a stiff challenge from Jos. A. Bank and its wrinkle-free shirts. Now, the owner of a Camp Hill dry-cleaning service is feeling the pressure from his state government, too.

Democratic Gov. Tom Wolf unveiled his first budget proposal Tuesday, outlining a plan that calls for billions of dollars in property tax breaks and a reduced corporate net income tax, as well as more than $4 billion in increased taxes.Wolf hopes to raise the personal income tax from 3.07 percent to 3.7 percent. He also wants to raise the sales tax from 6 percent to 6.6 percent and apply it to more goods, as well as services, such as attorneys, accountants and dry cleaners. He also wants to raise the minimum wage from $7.25 to $10.10 an hour.That's a potential triple-whammy for Kaplan's Careful Cleaners which won't directly benefit from Wolf's plan to halve the corporate net income tax and led the National Federation of Independent Business in Pennsylvania to contend small businesses are the "biggest losers" in the budget proposal.While it's a matter of nickels, dimes and maybe quarters, consumers might balk at bringing all their clothing to Kaplan when they notice their bills include a sales tax, he said."What does that do for a guy like me?" said Kaplan, who has owned his business for almost 40 years. "My industry's already challenging because the average consumer's looking at us and saying, 'I can wash that at home.'"Kevin Shivers, executive state director of the NFIB here, predicted cutbacks could follow Wolf's $33.8 billion spending plan.Raising the personal income tax could discourage businesses from investing in their operations. More than 80 percent of businesses here report their income on the owners' individual income, Shivers said. A higher sales tax that covers a broader range of goods and services would affect consumer spending and mean higher costs for businesses, he said."God forbid you're a small business that's facing a sales tax audit or a wage-and-hour audit or any type of review where you have to hire outside professionals because you're not big enough to pay them internally. You're going to pay more," Shivers said.The personal income tax would jump by 20 percent under Wolf's proposal, which came a week after Florida Gov. Rick Scott, a Republican, came to Pennsylvania to hawk his state's business climate. A lack of a personal income tax was a big part of his pitch.Despite the corporate tax breaks Wolf proposes, he might have given Scott more ammunition for future job-poaching trips.The Pennsylvania Restaurant and Lodging Association is wary of Wolf's plan, especially considering restaurants had a strong start to 2015 thanks to low gas prices that put more money in consumers' pockets, said John Longstreet, the president and CEO of the association."The No. 1 thing that drives restaurant spending is real disposable income, and when you reduce that by increasing their tax rate, no matter what form it takes, it takes away their ability to go out to eat," he said.Wolf, though, is painting the policies as part of a comprehensive tax reform package that would make revenue collection more fair. He's also touting a $3.8 billion property tax relief plan.That hasn't alleviated concerns from entrepreneurs, especially in the small business world.'The right thing'Asked how he would sell the budget to small businesses, Wolf's budget secretary, Randy Albright, said it has to be evaluated as a "total tax package" that rebuilds public schools and the business tax climate while investing in programs that help the private sector."But a total tax package that's going to benefit the average middle-class homeowner, that's the key to our state's economy. And if we do that, those are the patrons that serve those businesses," he said.Albright said raising the minimum wage is "the right thing to do," noting that a family of four receiving the minimum wage still pays below the poverty level.Jeff Cohen is chairman of the board for the PRLA and owns the Smallman Street Deli, which has two locations in Pittsburgh. He disagrees that ramping up the minimum wage would help, saying the current rate is meant as a training wage for young people entering the workforce.Cohen would save higher wages for his best employees, saying marginal workers wouldn't get hired at $10.10 an hour. Ultimately, fewer people would be hired, he said."They think it evens the playing field. In my opinion, it widens the playing field," Cohen said. "Employers will be much more selective if they have to pay more money."The EmploymentPolicies Institute, which is run by a public-relations agency that represents the restaurant industry, said its analysis shows Pennsylvania would lose more than 30,000 jobs if the minimum wage increases to $10.10 an hour.Wolf's proposals face an uphill battle. It's unlikely he will get all he wants from a General Assembly with massive Republican majorities.Cohen wonders whether the governor is just setting up a negotiating point asking for the "sky" and hoping he'll get some of his requests but would still have rather seen Wolf focus more on issues such as public pension reform before approaching the business community for more tax revenue."I don't think people in Harrisburg or even in Washington understand how hard it is for people in small business to survive," he said.