Wolf’s Tax Plan: Three Things Every Family Needs to Know
Here are three things to know about Gov. Wolf’s proposed tax plan:
- Wolf’s budget calls for a net tax increase of about $1,400 more per family of four this year (with $0 in property tax rebates), and $1,400 next year (a $2,500 increase in state taxes with about $1,100 in property tax rebates).
- Under Wolf’s plan there will be no property tax “relief” until October 2016, and it won’t prevent future property tax increases.
- Only 30 cents of every dollar in new state taxes over the next two years would be redistributed to school districts for property tax rebates.
A thorough reader pointed out that our analysis of Gov. Tom Wolf’s proposed tax increases had double-counted tax refunds (the amount the state returns to taxpayers who overpaid).
As a result, we underreported the impact of Wolf’s tax plan. In fact, the net increase for next fiscal year is $1,425 per family of four, slightly more than our previous estimate.
|Proposed Tax Changes in Gov. Wolf’s Budget (Totals in Thousands)|
|2015-16||2016-17||Two Year Total|
|Total State Tax Increases||$4,554,600||$8,053,000||$12,607,600|
|Property Tax Rebates||$0||($3,666,000)||($3,666,000)|
|State Tax Increases Less Property Tax Relief||$4,554,600||$4,387,000||$8,941,600|
|Net Tax Increase Per Family of Four||$1,424.73||$1,372.31||$2,797.04|
For a more detailed look at Governor Wolf’s budget proposal, read our latest policy memo.