Tuesday, March 3, 2015
Governor Wolf Proposes Sales Tax Hike / Lower Property Taxes
The Governor proposed many things but rumor mill proved to be true regarding Pennsylvania sales taxes. Wolf has proposed raising the state's sales tax for the first time in 50 years, from 6% to 6.6%.
To reduce the tax burden, it was proposed a simultaneous cut in property taxes. Creation of new taxes would help boost school aid and shift education funding away from local property taxes.
The plan was proposed to reduce the property's taxes by nearly $1,000.
The budget does increase spending in the state from $29 billion to $33.7 billion (nearly 16% increase) but would eliminate the state's $2.3 billion deficit.
What are your thoughts on raising sales taxes but reducing property taxes?