The House Majority Policy Committee recently heard testimony on Gov. Tom Wolf’s proposed 46 percent increase in the Personal Income Tax.
Speakers included Dr. Matthew Rousu, dean and professor of economics at the Sigmund Weis School of Business at Susquehanna University; Jason Skrinak, from the Pennsylvania Institute of Certified Public Accountants; Elizabeth Stelle from the Commonwealth Foundation; and Jared Walczak from the Tax Foundation.
Skrinak said the governor’s proposed expansion of the existing tax exemption for poverty potentially violates the state’s constitution. Employees will still see a lower income on a per-pay-period basis even if there are special tax forgiveness provisions.
Stelle testified the proposal would result in a $1,500 tax increase for a family of four making the median family income.
Walczak explained that Pennsylvania applies a broader definition of income than any other state. Local rates combined with the governor’s proposal would result in an income tax rate of 8.37 percent, the nation’s highest.
Rousu focused on the impact of increasing the minimum wage gradually to $15 an hour, claiming it would result in job losses and would disproportionately affect smaller businesses and younger workers.
The committee will hear testimony on March 3 on the impact of the governor’s proposal on small businesses.