According to State House Sound Bites the report shows Wolf’s revenue projections are correct, but that is only if he can get his proposals through the state legislature. Many of Wolf’s proposals are similar to what he has proposed in his previous budgets and been unable to get passed.
The main part of Wolf’s proposal is the severance tax he campaigned on in 2014 and has included in every budget proposal since taking office. The IFO does say that Wolf’s first year projections of revenue from the tax are $35 million more than the IFO predicts, but the difference evens out as the years pass.
The IFO also had positive remarks on Wolf’s plan to increase the minimum wage and reform Pennsylvania’s corporate tax code.
The report states that increasing Pennsylvania’s minimum wage to $12 an hour from the current $7.25 an hour would put Pennsylvania in line with the surrounding states.
“Currently, all surrounding states have a minimum wage that exceeds Pennsylvania by at least $1.00 per hour for 2019, and two states (New York and Maryland) have a minimum wage that is at least $2.00 higher. If Pennsylvania’s minimum wage increases to $12.00 per hour in 2021, it would rank eighth highest out of all states and the District of Columbia for that year,” the report reads.
The report states that the increase in minimum wage would result in the loss of 33,000 jobs in the state.
On corporate tax reform, State House Sound Bites say’s the “corporate tax overhaul would broaden the commonwealth’s tax base by instituting combined reporting, a practice wherein corporations would report the income of their subsidiaries in other states, not just in Pennsylvania.”
Wolf’s proposal, while increasing revenues for the first few years, would end as a loss as the years continue according to the IFO.