PRINTER'S NO. 3615
No. 612 Session of 2006
INTRODUCED BY GEORGE, FREEMAN, BEBKO-JONES, BEYER, CALTAGIRONE,
CLYMER, DeLUCA, DeWEESE, FABRIZIO, FRANKEL, GRUCELA, HANNA,
HERSHEY, HESS, JAMES, LEACH, LESCOVITZ, LEVDANSKY, McGEEHAN,
MYERS, PALLONE, PAYNE, PETRARCA, READSHAW, ROBERTS, SIPTROTH,
STABACK, STURLA, SURRA, THOMAS, TIGUE, WALKO AND YOUNGBLOOD,
MARCH 6, 2006
REFERRED TO COMMITTEE ON FINANCE, MARCH 6, 2006
A RESOLUTION
1 Directing the Legislative Budget and Finance Committee, in
2 cooperation with the Local Government Commission, to study
3 and analyze the fiscal impact of a graduated income tax.
4 WHEREAS, The residents of Pennsylvania and their elected
5 representatives have evidenced their intent to reform property
6 tax and find alternative means of funding education; and
7 WHEREAS, The General Assembly has spent more than two decades
8 unsuccessfully attempting to create meaningful tax reform
9 without departing from a flat income tax; and
10 WHEREAS, The residents of Pennsylvania require and deserve a
11 tax system which supports the high quality of education in this
12 State without pricing seniors and families out of their homes;
13 and
14 WHEREAS, Of the 41 states which have imposed an income tax,
15 35 states utilize a graduated income tax; and
16 WHEREAS, A graduated income tax offers a fair and adequate
1 alternative to regressive and burdensome measures such as sales
2 and property tax; and
3 WHEREAS, The proposed plan applies a graduated tax only to
4 that income which exceeds each previous tax bracket and thereby
5 applies to every individual in a uniform manner; and
6 WHEREAS, A report by the Legislative Budget and Finance
7 Committee will provide necessary information to evaluate the
8 benefits and weaknesses of a graduated income tax; and
9 WHEREAS, A graduated income tax offers significant tax relief
10 to many residents without overburdening seniors or middle-class
11 families; therefore be it
12 RESOLVED, That the Legislative Budget and Finance Committee,
13 in consultation and cooperation with the Local Government
14 Commission, determine the potential amount of revenue created by
15 the proposed graduated tax plan and prepare a report analyzing
16 the potential tax consequences for the residents of
17 Pennsylvania; and be it further
18 RESOLVED, That the proposed graduated tax plan evaluated by
19 the Legislative Budget and Finance Committee consist of multiple
20 tax brackets and that each individual pay a uniform percent of
21 tax on the income falling within each tax bracket; and be it
22 further
23 RESOLVED, That the Legislative Budget and Finance Committee
24 make recommendations regarding the application of the graduated
25 income tax to married individuals; and be it further
26 RESOLVED, That the Legislative Budget and Finance Committee
27 reports its findings and recommendations to the Senate and House
28 of Representatives within 90 days of the adoption of this
29 resolution.
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