By Sharon Ward, Third and State
The Pennsylvania Budget and Policy Center is out today with a new analysis finding that President Obama’s plan to end federal tax cuts for high-income earners would have very little impact on taxpayers in most Pennsylvania counties.
In over half of the state’s 67 counties, fewer than 1 in 100 residents (that’s 1%) would pay the higher marginal tax rate on income above $200,000 for individuals and $250,000 for married couples.
In most counties, only a small number of individuals are affected. In 24 counties, fewer than 200 high-income earners would pay the higher rate. Almost two-thirds of the top earners who would be impacted reside in just six Pennsylvania counties.
Under President Obama’s plan, families earning over $250,000 would keep other tax breaks on the first $250,000 of income, including a lower bottom tax rate and preferential tax rates on capital gains and dividends – a savings of $12,112 per taxpayer. The top tax rates would be restored to those in effect in the 1990s when the nation added 23 million jobs.
The PBPC county estimates are based on 2010 taxable income data published by the Pennsylvania Department of Revenue. You can read more about the estimates and analysis here.