Pennsylvania House Bill Seeks to Increase Tax on Passive Income

A new bill in the Pennsylvania House of Representatives, intended to establish a “fair share tax plan,” would change the commonwealth’s income tax system and raise the tax on passive income.

State Rep. Chris Rabb (D) on Thursday introduced legislation (H.B. 1773) reducing the income tax on individual wages and interest to 1.9%, while raising the tax on passive income to 12%. Income sources that would be subject to the higher tax include net gains or income from the disposition of property, estates or trusts, royalties, patents, and copyrights, as well as dividends and winnings from gambling ...