Rep. Marla Brown (R-Lawrence) announced during a Capitol press conference in Harrisburg that she is the prime co-sponsor of legislation that would reduce the Personal Income Tax (PIT) rate and increase funding for property tax relief. The legislation is part of a series of bills to ease the economic struggles of hardworking Pennsylvania Families.
The 10 bills that make up the “Pennsylvania Families Tax Relief” initiative would provide reductions in various state taxes placed on families. Working with the Appropriations Committee, the estimated savings totals more than $2.2 billion.
Brown teamed up with the prime sponsor of this legislative package, Rep. Ryan Mackenzie (R-Lehigh), as the co-sponsor of five bills.
“Lawrence County’s growth has been stymied because many families have been hit hard by these tax burdens,” said Brown. “Changes must be made by cutting taxes and stimulating economic growth. I am committed to making our community robust again, and this package of bills in an excellent start.”
Brown is co-sponsoring the following Pennsylvania Families Tax Relief proposals:
• Bill that would reduce the PIT rate in Pennsylvania from 3.07% to 2.99% over a two-year period. The estimated annual savings would amount to $500 million.
• Bill would increase funding for property tax relief by redirecting all revenue generated from gaming that is designated for the General Fund to be used for the exclusion provided by school districts. The estimated annual savings would be $379 million.
• Bill will increase Pennsylvania’s Child and Dependent Care Tax credit to match the federal credit of up to $3,000 for one qualifying individual and $6,000 for two more qualifying individuals over a three-year period. The estimated annual savings would be $85 million.
• Bill would provide a permanent exclusion to Pennsylvania volunteer emergency medical services and fire company members from Sales and Use Tax (SUT) for any protective equipment used by volunteer firefighters, volunteer ambulance service personnel or volunteer rescue service personnel to protect themselves from injury while performing their duties.
• Bill would reduce the Inheritance Tax for direct descendants and siblings from the current 4.5% and 12% to align with the Pennsylvania Personal Income Tax (PIT). Lineal heirs are grandfather, grandmother, father, mother and their children. Children include natural, adopted or stepchildren. The estimated annual savings amounts to $440 million.
Brown cites a new report from the Independent Fiscal Office (IFO) comparing the tax burdens in all 50 states that ranked Pennsylvania 21st in total taxes, including the PIT, SUT and property taxes.