November 14, 2015
A framework for a budget in Pennsylvania could leave renters in the state drawing the short straw, Governor Tom Wolf acknowledged Friday.
During a radio interview with 1020 KDKA Friday, Wolf was asked about the tentative framework that would decrease property taxes but increase the sales tax from 6 percent to 7.26 percent, potentially leaving a burden on those who don't own property.
He said that in order to get to the still uncertain compromise he's reached with the Republican-controlled legislature, the outline for a budget that's been absent since the summer isn't completely ideal.
"My proposal was that, in March, that there would be a benefit for renters as well as for home owners," Wolf told the station. "This is half a loaf."
WTAE has more on that proposed benefit for renters:
...his original budget plan in March sought to deliver $426 million in rent rebates to lower-income households, but Republicans opposed it. Meanwhile, Wolf and Democratic lawmakers say they would have preferred an increase in the personal income tax because they believe it does not fall as heavily on the poor.
Among the 11 largest U.S. cities, Philadelphia has the smallest percentage of renters with 44 percent, according to a Wall Street Journal report from earlier this year.
That's much higher than the state average, however, as only 11.4 percent of state residents rent, according to 2010 census data.
Speaking to KDKA, Wolf said that increasing the sales tax was neccesary to fund the state's schools, and that an exemption for food, clothing and prescription drugs would help offset the regressive nature of the higher sales tax that could impact those on the lower end of the economic scale, including many who rent instead of owning a home.
Yet some Democrats are upset that Wolf has conceded the proposed tax on the state's Marcellus Shale industry in an effort to end the stalemate with GOP lawmakers. Per the Associated Press:
Sen. Daylin Leach, D-Montgomery, said the budget deal does more harm than good. It takes a pass on a tax that Pennsylvanians wouldn't even pay — on Marcellus Shale production — while increasing the most regressive tax, the sales tax, largely in order to lower a less regressive school property tax, Leach said.
"We have the highest rate of income equality in 100 years in this country and making the tax structure more regressive makes that worse, not better," Leach said.
The proposed deal to finally get a state budget in place is still under negotiation and many of the other details are unclear.
