Wolf submits plan to solve budget impasse

HARRISBURG, Pa. (WHTM) – Governor Tom Wolf is calling for a half-point increase in Pennsylvania’s personal income tax and a severance tax on natural gas drilling to boost school funding, cut property taxes for seniors and disabled households, and fix the state’s budget deficit.

Wolf submitted the plan Tuesday in an effort to solve the 3-month-old budget impasse.

His new plan calls for increasing the personal income tax from 3.07 percent to 3.57 percent. The original budget plan Wolf put forth in March called for a personal income tax of 3.7 percent and an expanded state sales tax of 6.6 percent.

Wolf said his new plan would eliminate school district property taxes for 216,344 new senior households and 30,915 new disabled households. Additionally, the tax forgiveness program would be expanded to benefit 426,000 households.

The severance tax plan for gas drillers would leave the existing impact fee in place. Wolf said it would bring Pennsylvania into line with every other gas-producing state.

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