A resolution sponsored by state Rep. W. Curtis Thomas that would call for a study on how a different income tax structure would affect the state was referred to the Pennsylvania House Finance Committee for review on Wednesday.
Thomas wants the state to study how a graduated tax structure might affect Pennsylvania. The state currently uses a flat personal income tax rate of 3.07 percent, which was set in 2004.
Seven states use a single flat tax rate for all personal income. The tax rate is applied to taxable income generated by residents, non-residents and businesses that are not taxed by the federal government.
In a memo to members of the Pennsylvania House of Representatives sent in July, Thomas said that 34 states use the graduated tax structure.
The study would compare the state’s personal income tax structure to that of other states that use the graduated tax rate – including Delaware, Maryland, West Virginia, New York, New Jersey and Ohio.
Thomas said in his memo that if the graduated tax structure created revenue for the state, it might be a way to provide local property tax relief.