The Pennsylvania House Republican Policy Committee, led by Chairman Josh Kail (R-Washington), held on June 11 the first in a series of hearings to discuss the House Republican tax cut bill, House Bill 2388.
Specifically, the legislation would reduce the Personal Income Tax (PIT) from 3.07 percent to 2.8 percent and eliminate the Gross Receipts Tax on electric bills for an estimated savings of up to $3 billion, officials said.
In the hearing, “Historic Tax Cuts,” state Sen. Greg Rothman (R- Shippensburg) joined Nathan Benefield, the senior vice president of the Commonwealth Foundation, testified that Pennsylvania’s current economy is hampered by its aging population, and its lack of incentives to retain young workers. The two men said businesses are relocating to states with more favorable tax environments and that start-up companies face challenges in beginning their businesses.
“We need to get the spending under control,” said Rothman, who championed the bipartisan passage of Senate Bill 269, the Pennsylvania Senate’s version of House Bill 2388. “Our household incomes and Gross Domestic Product (GDP) hasn’t increased at the same rate as our state budget…The best way to give back to people is a broad-based tax cut.”
Benefield said the state has a reputation for not being competitive on taxes, and that the tax cut measures included in the proposed bill would send the message that “Pennsylvania is open for business.”
The next hearing in the “Historic Tax Cuts” series will be held on Monday, June 17 in Luzerne County, followed by hearings on June 18 in Montgomery County, June 20 in Cambria County and June 21 in Allegheny County.