Dorothy C. Borchardt        

CERTIFIED PUBLIC ACCOUNTANT          

Accounting & Tax Services            

New for Pennsylvania Taxpayers

Governor Rendell signed a $25 million tax cut for those saving for higher education.  Under the new law, Pennsylvanians are given a state tax deduction for contributions made to any qualified tuition account program, including those offered by other states.  This new law also provides a state tax exemption for distributions from qualified tuition savings plans. 

The minimum wage in Pennsylvania has also been increased for the first time in nine years.  Beginning January 1, 2007 the minimum wage increases to $6.26 an hour and to $7.15 an hour on July 1, 2007.  Employers with 10 or fewer full-time employees will follow a delayed implementation schedule - $5.65 on Jan. 1, 2007; $6.65 on July 1, 2007; and $7.15 on July 1, 2008.

Dorothy C. Borchardt, CPA   Phone: 610-692-0885   Email: db@db-cpa.com

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