Droping the PIT

Three top Republicans in the state House want to roll the state's Personal Income Tax rate back to 2.8 percent by 2008.

A bill, sponsored by House Speaker John Perzel of Philadelphia, Majority Leader Sam Smith of Punxsutawney and Appropriations Chairman Brett Feese of Lycoming County, would gradually reduce the PIT, which was raised to the current 3.07 percent on Jan. 1, 2004.
Gov. Ed Rendell, a Democrat, had wanted to raise it as high as 3.75 percent but compromised at 3.07 percent. The increase in the PIT is expected to become a campaign issue next year when Rendell seeks re-election.

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