Pennsylvania Democratic Governor Tom Wolf wants to raise taxes for wealthy residents and the natural gas industry to help pay for new investments in education and coronavirus relief.
The governor’s proposal foresees an increase in the individual income tax rate from 3.07% to 4.49%.
The released budget plan follows a statement on Tuesday in which Wolf’s office said 67% of Pennsylvania taxpayers would see tax cuts or maintain their taxes under their plan to cut costs for working class families while raising billions to invest in education and “workforce development.”
ARCHIVE – In this November 4, 2020, archival photo, Pennsylvania Governor Tom Wolf speaks during a news conference in Harrisburg, Pennsylvania, about counting votes in the 2020 general election. Facing a deep budget deficit inflicted by In a pandemic, Governor Wolf will ask lawmakers for billions of dollars financed by higher taxes on Pennsylvania’s massive natural gas industry for workforce development and employment assistance to help the state recover. (AP Photo / Julio Cortez, Archive)
“Now is the time to take bold action to remove the barriers to success that Pennsylvania families are facing,” Wolf tweeted on Tuesday afternoon.
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It would be the first personal income tax increase in the state since 2003, reported Penn Live.
Almost half of the new revenue would go to education spending.
The coronavirus pandemic also exposed glaring inequities for low-income, minority and disabled workers, according to Wolf, who is asking for billions of dollars for workforce development and “reemployment assistance” for workers laid off in the COVID-19 crisis .
Proposed new taxes on recreational marijuana and fracking would offset these expenses, according to Wolf’s office.
“Families with two children earning less than $ 84,000 will receive a tax cut, while a family of four who earn $ 50,000 will have their taxes eliminated,” according to the governor’s office.
Another part of his plans for 2021 would send $ 145 from the state’s Workers’ Compensation Security Fund directly to state-owned companies that suffer from the tightening of the coronavirus economy.
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Wolf also proposed raising Pennsylvania’s minimum wage to $ 12 an hour, with a path to $ 15 an hour.
Wolf is expected to formally announce his budget plan on Wednesday. The budget year 2021-2022 starts on July 1st.
The Associated Press contributed to this report.