News

Wolf administration disputes independent report on taxes

Written by Ed Mahon, York Daily Record | Apr 28, 2015 3:00 PM

Viewing this on a mobile device? Click here to see a chart about the Independent Fiscal Office report.

Gov. Tom Wolf's administration is pushing back on an independent analysis that found the governor's proposed budget would cause a net tax burden increase for all income groups.

During a Friday conference call, John Hanger, secretary of planning and policy, said the administration disputed key findings of the report, and he said that, overall, the governor's budget would put Pennsylvania in a more competitive position with other states.

LAST TIME >> On Thursday, the state Independent Fiscal Office released an analysis of the governor's revenue proposals.

The report projected that by 2019-20, Wolf's budget proposal would increase net state and local tax revenue by $5.2 billion: $9.8 billion in tax increases offset by $4.6 billion of tax and rent relief.

The report found that the tax burden for all income groups in Pennsylvania would increase under the governor's budget plan, although the director of the office said the projected increase for the lowest income group is so small that it is basically a wash.

As an example, the tax burden for people in the $50,000 to $74,999 group would increase by a combined $503 million by 2018-19, according to the Independent Fiscal Office.

The reported factored in increases for sales, personal income and tobacco taxes, an extraction tax on natural gas drilling, cuts to the corporate net income tax, property tax cuts, rent relief, and other changes.

The report also said that the governor's proposals would "make the tax system considerably more progressive."

The analysis found that Wolf would get the most new revenue by expanding what is covered by the sales and use tax.

Viewing this on a mobile device? Click here to see a chart about explaining where revenue would come from and where it would go.

THIS TIME >> Hanger said the administration remains "confident" that the governor's proposed changes would mean most Pennsylvanians would get a net tax cut when it comes to personal income, sales and school property taxes.

"The IFO, and I appreciate their ambition, but they are trying to expand the analysis to areas where the data sets are very weak and very difficult," Hanger said.

IFO director Matthew Knittel said his office would be happy to look at any information the Wolf administration has to share.

"We're just trying to provide a framework for the public debate," Knittel said.

The Wolf administration estimates that an average family of four that owns a home and makes $100,000 or less would receive a net tax cut.

Contact Ed Mahon at 717-771-2089.

Viewing this on a mobile device? Click here for another way to look at projected new tax revenue vs. relief.

Related

Gov. Wolf: What his emails do and don't show, and a look at email access fights for other politicians

Gov. Tom Wolf's sales tax expansion would cover child care, nursing homes and more.

Gov. Tom Wolf backs off campaign tax plan.

Wolf Tracker.


This article comes to us through a partnership between York Daily Record and WITF. 

Published in News

Tagged under ,

back to top

Post a comment

Give Now

Estate Planning

Support for WITF is provided by:

Become a WITF sponsor today »

Smart Talk

National Edward R. Murrow Awards

DuPont Columbia Awards

Support Local Journalism

Latest News from NPR

Support for WITF is provided by:

Become a WITF sponsor today »