As Pennsylvania's predicted budget deficit crept to $3.2 billion, a top aide to a leading House Democrat on Tuesday raised the possibility of increasing the state income tax to tackle the problem.
Raising the state's 3.07 percent income tax by 1 percentage point would raise $3.1 billion, but it appears no politician is ready to formally propose that.
"Practically speaking, a small increase in the personal income tax would be the smartest way to resolve this crisis. Politically, it is the most difficult," said Johnna Pro, spokeswoman for House Appropriations Chairman Dwight Evans, a Philadelphia Democrat.
Any tax increase would have to augment cutting spending, instituting more efficient government operations and using a portion of the state's $750 million Rainy Day Fund and federal stimulus dollars, Pro said.
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