Hutchinson touts Pa. Senate’s tax cut measure

A bill that has cleared the state Senate would reduce Pennsylvania’s personal income tax rate.

SB 269 passed 34-16 on Tuesday and now heads to the House for consideration.

“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 with a strong bipartisan, veto-proof majority,” State Sen. Scott Hutchinson said in his newsletter this week. “It would represent the largest tax cut for working families in Pennsylvania history, saving taxpayers more than $13 billion over the next five years.”

The bill would reduce the personal income tax rate from 3.07% to 2.%. A fiscal note on the bill projects that would result in a decrease in state revenues over the next three years totaling about $4 billion over the next three years.

“The bill would also eliminate the gross receipts tax on energy, effective Jan. 1, 2025, providing critical relief from high energy costs,” Hutchinson said.

The fiscal note projects a decline in revenues of just over $3 billion in the next three years.

“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,” Hutchinson said.

He called it a “sharp contrast” from Gov. Joseph Shapiro’s spending plan and legislation introduced by House

Democrats that, he said, would “nearly quadruple certain taxes paid by small businesses.

“Instead, Senate Republicans continue to protect taxpayers against unnecessary tax increases, new spending and unchecked growth in the size of government,” Hutchinson stressed.

“We are calling on majority House Democrats to bring this bill up for a vote so we can give our citizens the relief they need and deserve,” Rep. Kathy Rapp said.

Among other provisions, the bill also includes a tax credit plan for volunteer emergency medical technicians. The fiscal note states there would be service requirements and that the maximum allowable credit would be $500.


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