HARRISBURG – Working families, job creators and energy consumers in Pennsylvania would see their taxes reduced by approximately $3 billion a year under a bill approved by the Senate today, said Sen. Lisa Baker (R-20).
Senate Bill 269 would reduce the Personal Income Tax (PIT) rate from 3.07% to 2.8%, putting more money in the wallets of every Pennsylvanian who earns a paycheck. The bill would also eliminate the Gross Receipts Tax on energy, effective Jan. 1, 2025, providing critical relief from high energy costs.
The bipartisan legislation would represent the largest tax cut for working families in Pennsylvania history, saving taxpayers more than $13 billion over the next five years.
“There are crucial choices to be made about state taxes and spending. Many people who have struggled with job changes and rising costs due to inflation have asked what Pennsylvania can do to help,” Baker said. “This proposal will offer a clear counter to the governor’s heavy spending budget plan. It is intended to enable us to reach a more family friendly balance between costs and services.”
The tax cuts would benefit all Pennsylvania families and inject an additional $3 billion into the state’s economy, rather than growing government and arbitrarily picking winners and losers. The plan is a sharp contrast from Gov. Josh Shapiro’s calls for $3.2 billion in new government spending, as well as legislation introduced by House Democrats to nearly quadruple certain taxes paid by small businesses.
The tax cuts are a continuation of Senate Republicans’ longstanding efforts to protect taxpayers against unnecessary tax increases, new spending and unchecked growth in the size of government.
Senate Bill 269 was sent to the House of Representatives for consideration.
View Baker’s remarks on the bill here.
CONTACT: Jennifer Wilson