Article by Jennifer Karpchuk on “Top Tax Takeaways From Gov. Wolf’s Budget Proposal”
In an article published on March 15, 2021 in The Legal Intelligencer, Chamberlain Shareholder Jennifer Karpchuk explains many of the proposed changes in Governor Wolf’s budget proposal. While many of these changes are not new, the governor has unsuccessfully attempted to pass a number of the proposed changes in previous years.
“For various reasons, each has been met with criticism, lobbying and eventual defeat,” explains Karpchuk. “Will the result in 2021 be any different?”
The budget calls for some important changes to the commonwealth’s tax system, including an increase to the state personal income tax (PIT) rate from 3.07% to 4.49%, or a 46% rate increase. Karpchuk explains that, “Of states that impose an income tax, Pennsylvania’s PIT rate is one of the lowest in the country.” Many wonder if this state level increase is enough to push residents out of the city.
A few other items up for discussion are proposed reductions to the corporate net income tax rate, combined reporting, approval of a tax on Marcellus Shale natural gas production in order to fund a “Back to Work PA” program and the legalization of adult-use marijuana.
“The governor’s 2021-22 proposed budget is largely reminiscent of past budgets,” says Karpchuk. “Over the years, majority of the proposals in Governor Wolf’s budget have been met with resistance and defeat. Absent serious changes of heart from the legislature, history is likely to repeat itself.”
To learn more, subscribers may view the full article here.