Is the Keystone State’s Income Tax Proposal Alive?

August 4, 2009

The Pittsburgh Post-Gazette reports that an income tax increase is off the table in Pennsylvania. Governor Ed Rendell has been pushing to increase for three years the flat income tax rate from 3.07% to 3.57%, a 16% increase. But the plan met opposition from PA Republicans and Blue Dogs unwilling to increase taxes. The debate on the health of the tax increase proposal has gone back and forth for weeks, with the Governor repeating that the proposal is alive and well and many in the legislature declaring it dead and gone. It remains to be seen whether the proposal has any life left in it.

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