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 36-14 yesterday, said Sen. Chris Gebhard (R-48).
Senate Bill 269 would reduce the Personal Income Tax (PIT) rate from 3.07% to 2.8%, putting more money in the pockets 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 represents the largest tax cut for working families in Pennsylvania history. Over the next five years, more than $13 billion dollars would remain with Pennsylvania taxpayers.
“Pennsylvania families are struggling to keep up with inflation. We see it every day at the grocery store, at the gas pump and on the electric bill. My bill will make a real tangible difference on the finances of every Pennsylvanian. These cuts will help improve their lives,” said Gebhard.
The tax cuts would benefit all Pennsylvania families and inject an additional $3 billion into the state’s economy, rather than expanding the size of state government by creating even more programs. This 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.
“Since I was first elected in 2021, I have been fighting to hold the line on new spending and unneeded tax increases. I am grateful we are now able to return $3 billion dollars to their rightful owners: the taxpayers of Pennsylvania,” concluded Gebhard.
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.
CONTACT: Alex Gamble