The Governor’s plans include a half-percent increase in the state’s personal income tax – bringing it to 3.57% – and a 3.5% severance tax on natural gas drilling, but Wolf notably left out some of the taxes he has been arguing for over the last three months since vetoing a GOP-crafted budget.
There will be no sales tax increase under Wolf’s latest plan, and the state will not expand the list of goods and services they can collect sales tax on. Wolf also dropped his insistence on a $1 tax for every pack of cigarettes sold in PA, according to Mark Scolforo of the Associated Press.
The PA House of Representatives has scheduled a vote on the first-year governor’s plans for Wednesday, with Wolf needing to pick up 18 GOP members, provided all 84 Democrats vote for his plans.
To sweeten the pot for GOP legislators, Wolf’s plans eliminate property taxes for 216,000 seniors and 31,000 households with disabled residents.
The Wolf Administration predicts the revenue plans will raise $1.4 billion for the fiscal year that started 97 days ago, while bringing in $2.4 billion in 2016-17.
If Wolf’s plans pass in the House, Senate GOP leaders have promised to bring up the legislation in their chamber, Senate Republican spokeswoman Jennifer Kocher said, though “the votes don’t appear to exist.”