UpdatedWed, Feb 3, 2021 at 3:55 pm ET
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Pennsylvania Gov. Tom Wolf (PACast)
HARRISBURG, PA Pennsylvania Gov. Tom Wolf on Wednesday proposed a significant hike in the state income tax but asserted that lower-wage earners would be exempt from paying it.
In unveiling his proposed 2021-22 state budget, Wolf recommended raising the state s personal income tax from 3.07 percent to 4.49 percent. But he contended that taxes actually would decrease or stay the same for about two-thirds of state residents and the increase would impact only the highest wage earners. This budget makes major changes to our tax system, Wolf said in an address delivered by video to the state Legislature because of the coronavirus outbreak. It actually reduces the tax burden on Pennsylvania families earning $84,000 or less. It also proposes a major tax reduction for Pennsylvania businesses.