Tax break for homeowners would be funded by hiking sales, income taxes

A proposal to eliminate or lower school real estate taxes in Pennsylvania would make up for part of the lost revenue by increasing the state’s personal income tax by 41 percent and raising the state sales tax to 7 percent.

A plan now being debated by the state Senate would mean higher costs for renters and professionals whose goods and services are subject to sales taxes, while cutting school funding by $2.6 billion over the next five years. Backers of the idea say school real estate taxes are too high to bear for some first-time homebuyers and elderly homeowners on fixed incomes. Source: