Earlier today Governor Rendell proposed raising the state income tax from 3.07% to 3.57% for the next three years in order to cover some of the budget gap being seen in Pennsylvania. According to the Governor, the rate increase would raise $1.5 billion for the state.
Last week we posted a quick calculation from PCCY on the impact of a tax increase on families. As this issue continues to be in the news, we wanted to give you the opportunity to see how this increase might affect your family. Below is a quick back-of-the-envelope calculation on what a 0.5% tax would mean per household in Pennsylvania.