Senate proposes ‘historic’ tax cuts to counter Democrats’ spending plans

Investing three billion dollars means different things to different people.

To the Senate Majority Leader Joe Pittman (R-Indiana) This means giving money back to Pennsylvanians in exchange for modern Democratic spending.

Amendment proposed on a bill granting tax relief to volunteer paramedics was approved by an 11-5 vote of the Senate Rules Committee, which calls for lowering the 3.07% tax rate to 2.8% and eliminating the 140-year-old gross receipts tax on electricity.

Not surprisingly, Democrats voted against it, noting that they only received the proposed amendment an hour before the meeting and did not have time to review the significant change to the tax code.

Pittman, who said the bill would save the state a total of $1.7 billion from the personal income tax cut and $1.2 billion from eliminating the electricity tax, said he was defying the Democratic majority in the House. and Governor Josh Shapiro desire for modern expenses.

“There has been a lot of discussion about the $3 billion in additional spending. “Our view is that if we’re going to invest $3 billion, we should invest it back into taxpayers,” Pittman said. “We fundamentally believe that if you allow ratepayers and electricity consumers to keep a larger share of their earnings, they will be in the best position to decide how to reinvest that amount into our economy. We believe that lower tax structures will help the economy continue to grow and in this case we will lift all boats.”

He also pushed back against what he called Democrats’ beliefs that if there is too much money in a savings account, it should be allocated to modern priorities or escalate funding for existing budget lines.

“Our argument is that if you think there is too much money in our savings account, it should be returned to whoever put it there, the taxpayer,” Pittman said.

Shapiro’s proposed budget calls for an escalate in general fund spending to $48.3 billion from this year’s $44.6 billion, which includes $1.1 billion more for public school funding, $50 million for whole-house repairs, $283 million for transportation collective, $600 million for economic development initiatives and more money for higher education and for Pennsylvanians with intellectual disabilities.

Get in Touch


Please enter your comment!
Please enter your name here

Related Articles

Latest Posts