Media
Can You Afford $1,000 More?
On Wednesday, the Pennsylvania House of Representatives is scheduled to vote on a major tax increase. This vote will be, in all likelihood, on a proposal Gov. Tom Wolf offered in September, rather than his original proposal.
UPDATE: Gov. Wolf offered a new tax proposal on October 6, 2015. Here is a summary of that plan
The major differences are that Wolf's new plan includes a narrower expansion of the sales tax (basic cable TV, dry cleaning, amusement and recreation, and other personal services), no sales tax rate increase, and a 14 percent increase in the income tax.
On the flip side, Wolf's new plan includes no property tax relief, and no reduction in the corporate income tax rate.
In total, Wolf's tax hike would take $1.8 billion more from taxpayers for this fiscal year, and $3.2 billion more next year, after all taxes have taken effect. That represents an increase of more than $1,000 per family of four.
| Gov. Wolf's Proposed Tax Changes | ||||
| Item | 2015-16 | 2016-17 | ||
| State Tax Rate Changes | Total Revenue | Per Family of Four | Total Revenue | Per Family of Four |
| Severance Tax of 5% and 4.7 cents per MCF – Jan 1, 2016 (net of impact fee) | $99,000 | $31 | $353,000 | $110 |
| Personal Income Tax Rate Increase to 3.49% – October 1, 2015 | $1,100,000 | $344 | $1,700,000 | $532 |
| Personal Income Tax Imposed on Lottery – July 1, 2015 | $7,800 | $2 | $16,300 | $5 |
| Sales Tax Expanded to untaxed items and services – January 1, 2016 | $263,000 | $82 | $689,000 | $216 |
| Bank Shares Tax – immediate rate increase | $44,000 | $14 | $46,000 | $14 |
| Cigarette Tax increase $1 per pack – November 1, 2015 | $302,000 | $94 | $438,000 | $137 |
| Tobacco Products (not large cigars) and eCigarettes tax of 40% on wholesale price – January 1, 2016 | $37,300 | $12 | $95,000 | $30 |
| Sales Tax Increase from Cigarettes | $8,000 | $3 | $13,000 | $4 |
| Total State Tax Increases | $1,861,100 | $582 | $3,350,300 | $1,048 |
| Tax Forgiveness | ($80,000) | ($25) | ($106,000) | ($33) |
| Net Tax Increase | $1,781,100 | $557 | $3,244,300 | $1,015 |
You can read more about this tax plan in our latest policy memo.
Governor Wolf and his special interest allies are already calling lawmakers to pressure them to vote for higher taxes. They need to hear from you too.
Join us in telling your legislators and Gov. Wolf—No New Taxes!