Gov. Wolf Presents Budget Address To PA Legislature Tuesday
By Tony Romeo
HARRISBURG, Pa. (CBS) -- Governor Wolf is expected to propose wide-ranging changes when he makes his budget address to the legislature today.
All indications are that Governor Wolf will propose sweeping changes to state taxes, including increases in the state's personal income tax, sales tax and reductions in property taxes.
On the eve of the budget address, Republican state Representative Seth Grove expressed concerns about the impact Wolf's proposals may have on small business.
He said, "I think he's going to throw out a lot… and I appreciate him attacking – don't get me wrong – I appreciate him trying to attack our overall tax burden here in Pennsylvania. I think it's very difficult to do. So I appreciate his leadership in trying to at least start a conversation moving towards maybe a fairer tax system."
Philadelphia's Vincent Hughes, ranking Democrat on the Senate Appropriations Committee, also says the governor's proposal will include a significant reduction in the Philadelphia wage tax that, over a period of several years, would take the wage tax down to levels last seen in the mid 70s: "When you put all of the different pieces together, it will wind up being about a half a point reduction in the wage tax for Philadelphia residents."
He says, "We'll be seeing probably a rollback that goes all the way back to about 1975. So that's about a 40 year rollback in terms of the reduction. Very dramatic – very dramatic."
Hughes says suburban residents who work in the city would get a similar reduction.
The governor has already proposed taxing natural gas drilling to increase education spending and has rolled out a plan to reform state taxes on corporations.
When Governor Wolf spoke with reporters at an event near Harrisburg last week he offered a broad assessment, referring to his campaign themes.
"What I talked about what was a fairer tax system… and so I do intend to present that." Said Wolf, "This is a chance for a reset and I hope the people of Pennsylvania like what I propose."