Protecting Pennsylvania Taxpayers
June 11th – Harrisburg – Hosted by Vice Chairman Ecker
June 17th – Luzerne – Hosted by Rep. Watro
June 18th – Montgomery – Hosted by Rep. Scheuren
June 20th – Cambria – Hosted by Rep. Jim Rigby
June 21st – Allegheny – Hosted by Rep. Mihalek |
Inflation is crippling Pennsylvania families and businesses. Income for Pennsylvania residents is of great concern and good governance requires the legislature to protect taxpayers. There are two visions in Harrisburg, one that will cost taxpayers more and one that puts money back into every Pennsylvanian’s pocket. Through HB2388 and SB269 the legislature can return $3 billion dollars to the people of Pennsylvania by decreasing the Personal Income Tax (PIT) from 3.07% to 2.8%, along with eliminating the Gross Receipts Tax on electric bills. Meanwhile, Gov. Shapiro and his Democrat allies are pushing a plan that punishes fiscally responsible school districts and ultimately forcing them to raise property taxes. House Republicans stand ready to protect taxpayers from dangerous spending schemes while pushing to reduce taxes on Pennsylvania families, businesses, and communities will thrive.
Key Takeaways:
Legislature
The Hon. Greg Rothman
Senator, Pennsylvania State Senate
| |
• |
Tax reforms that lead to prosperity have historic precedent in America. The “Roaring 20s” were instigated by across-the-board tax cuts. |
| |
• |
Pennsylvania does not tax pensions. It makes equal sense to not tax production. |
| |
• |
PA has not reduced the state income tax since 1986! |
| |
• |
HB2388 and SB269 are key pieces of legislation needed to inspire tax reform and make Pennsylvania competitive.
| |
o |
Both bills decrease the PIT from 3.07% to 2.8% beginning January 2025. |
|
Experts
The Commonwealth Foundation
| |
• |
PA maintains more than 166,000 regulatory restrictions, the 12th highest in the nation. |
| |
• |
PA’s employment rate has only grown at 1% per-year for the last 4 years. In contrast, low-tax states like Utah, Idaho, Florida, and Texas have seen growth between 7% and 11%. |
| |
• |
Pennsylvania has suffered from outmigration for 12 of the past 13 years.
| |
o |
In the last decade, Pennsylvania has lost 270,000 residents to other states. |
| |
o |
In 2021 PA lost 9,000 taxpayers (14,000 individuals) and $1.9 billion in income through outmigration. |
|
| |
• |
PA has an aging population.
| |
o |
Today, there are 3.5 working adults per senior. |
| |
o |
By 2039, there will be 2.5 working adults per senior. |
| |
o |
PA must become more attractive to working age families and their employers. |
|
| |
• |
Across-the-board tax cuts are the most effective ways to make PA competitive. |
| |
• |
HB2388 and SB269 would save nearly $400 per family of four and grow PA’s tax base. |
| |
• |
PA small businesses pay the personal tax rate, and not the corporate rate. Reducing PIT benefits both individual taxpayers and small businesses. |
Schools
| |
• |
With the Democrats Education funding plan, inefficiently managed districts are rewarded with a larger allocation of funds. |
| |
• |
School districts like Souderton have consistently raised taxes to meet their budget obligations but this fact is ignored by the Democrats funding plan. |
| |
• |
The Democrats education funding plan underfunds students in higher performing, low tax schools. |
Businesses
| |
• |
Tax cuts make Pennsylvania attractive to businesses and investors. |
| |
• |
Inflation hurts businesses too, especially small businesses. In the last year alone a 40lb box of chicken wings has increased in price by 40%+! |
| |
• |
Tax cuts don’t mean the state will receive less revenue. Attracting more business and residents offsets the initial decrease in state revenue. |
Families & Communities
| |
• |
Tax cuts allow families to invest in education, home improvements, and patronize local businesses. |
| |
• |
Seniors wonder why they receive a “senior discount” at a restaurant, but not on their taxes. |
| |
• |
PA residents on fixed incomes, namely seniors and people with disabilities, have no means to pay increasingly higher prices and taxes. |
| |
• |
PA residents on fixed incomes are forced to choose between their medications and electric bill due to rising costs. Relief is needed. |
| |
• |
Financial insecurity takes a toll on the mental health of entire families. |
| |
• |
Property owners don’t want to see their property taxes hike because of unfair education funding proposals. |
In Case You Missed It:
| |
“Our approach is simple; your money is better off in your pocket.”
— Vice Chairman Torren Ecker — |
| |
“This isn't a political football. This is something to help people.”
— Rep. Dane Watro — |
| |
“I think these regions should be rewarded, not punished, for their fiscal responsibility.”
— Rep. Donna Scheuren — |
| |
“We've got our people that are here and are leaving because of their tax base”
— Rep. Jim Rigby — |
| |
“We want to be open not just for businesses, but for people who choose to live, work, and play here.”
— Rep. Natalie Mihalek — |
Watch the Testimony:
6/11 Full Hearing: Historic Tax Cuts
6/17 Full Hearing: Historic Tax Cuts
6/18 Full Hearing: The Benefit of Republican Tax Cuts, the Detriment of Democrat Property Tax Hikes
6/20: Full Hearing: Historic Tax Cuts
6/21: Full Hearing: Historic Tax Cuts