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House to take up Wolf tax plan

HARRISBURG — The latest push to resolve Pennsylvania’s 3-month-old budget impasse is going before state lawmakers in the form of a proposal by Gov. Tom Wolf to raise billions in new taxes.

The state House plans to take up Wolf’s tax proposal on Wednesday with an initial vote that will test support for the first-term Democrat’s proposal.Wolf wants to plug a budget deficit and increase spending on education and human services by increasing the personal income tax rate and imposing a new severance tax on natural gas drilling.The governor’s goal is to raise $1.4 billion for the current fiscal year and $2.4 billion next year.There’s considerable Republican opposition to imposing new broad-based taxes. The governor has been working to secure the dozens of GOP votes he’d need for passage.Wolf’s proposal also includes cuts for seniors and disabled people in the property taxes that fund public schools. The adm aid the new money will close the deficit, add about $400 million annually for basic education and boost spending for county human services programs.It remained to be seen if the administration can line up the 102 votes needed for House passage, which would require considerable Republican support in a chamber with just 84 Democrats.House Republican Leader Dave Reed, R-Indiana, said none of his members have told him they will vote yes.“I don’t believe they have 84 Democrats and I don’t believe there are a whole lot of Republicans lining up to vote for it, either,” Reed told reporters.Reed and Senate Majority Leader Jake Corman, R-Centre, offered to hold votes on Wolf’s proposal as a way to demonstrate it lacks sufficient support in the Legislature so the focus can shift to some other approach that can pass.“At some point, we’ve got to vote somebody off the island, and if it’s going to be broad-based tax increases, so be it,” Reed said.Rep. Joe Markosek of Allegheny County, the ranking Democrat on the Appropriations Committee, said he expected his members to unanimously support the governor’s new approach.“I think most of our members understand that we have to do something,” Markosek said. “We’re facing horrendous cuts.”Under Wolf’s plan, the state income tax rate would increase from 3.07 to 3.57 percent, while the natural gas drilling tax would be 3.5 percent, plus 4.7 cents per thousand cubic feet.The state’s existing impact fee on gas drilling, which is targeted to areas where the activity occurs, would be untouched.Wolf would cancel a provision in existing law that ends the impact fee if a severance tax is enacted.The administration said the tax package would raise more than $1.4 billion for the fiscal year that started July 1, and more than $2.4 billion next year, enough to balance the budget this year and next.Senate Republican spokeswoman Jennifer Kocher said the votes aren’t there in that chamber to pass what would be a 16 percent increase in the income tax, but leaders remain committed to bring it up if it gets out of the House on Wednesday.“It’s a mystery as to why (Wolf) is doubling down on the income tax when that is the portion that, we expressed to him since March, that we simply do not have the support” to raise, she said.An estimated 216,000 seniors and 31,000 households with disabled residents would see their property taxes eliminated, bringing the new statewide total to 331,000 households that would not have to pay the despised levies.Wolf dropped a proposal to increase the Pennsylvania sales tax rate, currently 6 percent in much of the state, to 6.6 percent. And he is no longer seeking an expansion of the list of items the sale tax covers that he had previously supported.