Wolf's tax plan takes center stage as budget hearings begin
HARRISBURG — Lawmakers kicked off budget hearings Tuesday as the Pennsylvania state government faces a multibillion-dollar revenue gap — a hangover from the ongoing coronavirus pandemic — and Gov. Tom Wolf’s proposal to raise the state income tax takes center stage.
Democrats defended Mr. Wolf’s proposal, which is structured to shift the burden to higher earners, at the first House Appropriations Committee hearing, saying it would cut taxes for lower-income workers in a state with one of the most regressive tax structures.
In addition, they said federal aid, if it comes, will not fix the state’s long-term deficit while Mr. Wolf’s proposal would also fairly fund public schools and open the door to school property tax cuts in some districts.
Republicans, who control the Legislature, questioned whether Mr. Wolf’s income tax proposal — designed to lower taxes on lower-income households and raise them on higher-income households — is constitutional under case law that interprets the state constitution to require a flat income tax rate, rather than a graduated rate.
Read more: https://www.post-gazette.com/news/politics-state/2021/02/16/legislature-state-governments-Pennsylvania-coronavirus-pandemic-Tom-Wolf/stories/202102160138