By: Charles Thompson
Gov. Tom Wolf, in proposing what may be the largest increase in the state personal income tax ever, is effectively trying to reverse engineer the state’s existing flat tax rate into a graduated tax system.
The governor is proposing to raise the state’s personal income tax from 3.07 percent today to 4.49 percent, starting in July, netting the state close to $3 billion annually. For some individuals, it would represent a 46.3 percent increase in the state’s personal income tax rate.