HARRISBURG, PA — At a news conference held at the state capitol on May 11, PA State Sen. Art Haywood joined Senate Democratic colleagues and community leaders calling for tax reform to protect middle- and low-income Pennsylvanians, introducing legislation that would reduce their tax burden.

The Institute for Taxation and Economic Policy placed Pennsylvania on the “Terrible Ten” list of states for unfair taxation in 2015. The researchers found that low-income Pennsylvanians pay three times the tax share of the wealthy in Pennsylvania, while the percentage middle-income earners pay is twice as much as the well-off.

Haywood’s legislation would amend the state constitution to allow for graduated taxation of income. The amendment would make it possible for Pennsylvania to tax middle-income families at a lower rate than those who are high-income, as all surrounding states do.

Second, the legislation would impose a 4% tax on non-wage, non-interest income classes that are concentrated among the most affluent. The tax would apply to net profits; dividends; net income derived from rents, royalties, patents and copyrights; gambling and lottery winnings; and net gains derived through estates and trusts. According to the Pennsylvania Budget and Policy Center, this legislation could add up to about $1.2 billion in revenue by the end of the 2017-18 fiscal year.