The House Majority Policy Committee recently heard statements about Governor Tom Wolf’s proposed 46 percent increase in income tax.
Speakers included Dr. Matthew Rousu, Dean and Professor of Economics at the Sigmund Weis School of Business at Susquehanna University; Jason Skrinak of the Pennsylvania Institute of Certified Public Accountants; Elizabeth Job from the Commonwealth Foundation; and Jared Walczak from the Tax Foundation.
Skrinak said the governor’s proposed expansion of the existing poverty tax exemption may be against the state’s constitution. Employees will earn a lower income per pay period even if there are special tax relief provisions.
Stelle said the proposal would result in a tax increase of $ 1,500 for a family of four who make the median family income.
Walczak stated that Pennsylvania uses a broader definition of income than any other state. Local tax rates combined with the governor’s proposal would result in an income tax rate of 8.37 percent, the highest in the country.
Rousu focused on the impact of gradually increasing the minimum wage to $ 15 an hour, claiming it would result in job losses and disproportionately affect smaller businesses and younger workers.
The committee will hear statements on March 3 about the impact of the governor’s proposal on small businesses.