Westmoreland Review

In response to the inflationary pressure that has seen costs for commodities such as groceries and building materials spike since 2019, a bipartisan plan aimed at reducing Pennsylvania’s overall tax burden and decreasing energy costs has been proposed. The plan, Senate Bill 269, was recently passed in the Senate and is expected to be considered by the House soon.

Pennsylvania Representative Jill Cooper (R-Westmoreland) believes that the government's burden on businesses and families should be minimized to allow families more spending power from their earned income. This would also enable businesses to focus on growth and job creation.

Senate Bill 269 proposes a reduction of the Personal Income Tax (PIT) rate from 3.07% to 2.8%, alongside an elimination of the Gross Receipts Tax on energy, effective from Jan. 1, 2025. According to Rep. Cooper, these measures will ensure more money remains in the hands of Pennsylvanians.

The proposal comes as budget discussions commence between the General Assembly and Gov. Josh Shapiro. By law, Pennsylvania must have a budget for the upcoming fiscal year in place by June 30.

Earlier this year in February, Gov. Shapiro proposed a $48.34 billion budget, representing an 8.4% increase over last year's budget. He claimed that this increase would not necessitate a tax hike due to his proposal's reliance on funds from the General Fund surplus and Rainy Day fund for recurring expenses.

However, Rep. Cooper points out that once these funds are depleted in a few years' time, a tax increase may become inevitable.

Rep. Cooper also noted concerns about House Bill 1773 - a House Democrat proposal which could nearly quadruple taxes paid by small businesses - warning that such expenses might force businesses to either raise prices or cut staff.

She argued that responsible governance entails prioritizing core services like public safety, quality education, and care for seniors, while eliminating wasteful spending.

Rep. Cooper expressed her belief that the right course of action is to make Pennsylvania more competitive in attracting businesses looking to open or expand in the state. She highlighted that more than a dozen other states, including Arizona, Arkansas, Idaho, Indiana, Iowa, Kentucky, Michigan, Mississippi, Missouri, Nebraska, New York, North Carolina, Utah and West Virginia had reduced income taxes in 2023.

She emphasized that by spurring economic growth and reducing energy costs paid by families and businesses, Pennsylvania could become even more competitive with these states.

Senate Bill 269 passed on the Senate floor this week and will be referred to the appropriate committee in the House for its first consideration. Rep. Cooper expressed hope that House Democrats who maintain a slim majority will advance the bill.