Members of the Legislature are set to receive the largest automatic COLA in history, while the tax forgiveness benefit for low-income workers will again be diminished by the same inflation rate.
Two things separate Pennsylvania from most other states. First, purchases of necessities like food, clothing and medicine are not taxed under the Commonwealth’s sales tax code. Second, since it’s inception, the Personal Income Tax provided for “tax forgiveness” for low income workers. Both of those provisions have demonstrated the sensitivity of past legislatures to the struggle of low-income citizens and workers across the Commonwealth.
Unfortunately, the threshold for qualifying for tax forgiveness under the PIT has not been increased since 1999. That means, of course, the value of the “tax forgiveness” provision has been diminished by inflation. Using the inflation rate used to calculated the automatic Cost of Living Adjustment which the legislature enjoys annually on December 1st, the “tax forgiveness” value has been reduced by approximately 53% since the threshold was last raised.
Some members of the House and Senate have been trying to address this injustice, but with no success. With each passing year, the value of this benefit for low-income workers becomes less. Because of the current inflation rate, Members of the Legislature are set to receive the largest automatic COLA in history, while the tax forgiveness benefit for low-income workers will again be diminished by the same inflation rate.
The governor and the legislature should correct this injustice in their fall session … and before their Dec. 1 automatic COLA!Note to readers: if you purchase something through one of our affiliate links we may earn a commission.
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