WILKES-BARRE — Sen. Lisa Baker stated on Wednesday that important decisions need to be made regarding state taxes and expenditure.
Baker, R-Lehman Township, mentioned that under a bill passed by the Senate, working families, job creators, and energy consumers in Pennsylvania would witness a decrease of about $3 billion in yearly taxes.
Baker explained that Senate Bill 269 would lower the Personal Income Tax (PIT) rate from 3.07% to 2.8%. She also noted that the bill would do away with the Gross Receipts Tax on energy, starting Jan. 1, 2025, offering crucial relief from high energy expenses.
Baker highlighted that the bipartisan law would mark the most substantial tax reduction for working families in Pennsylvania's history, resulting in over $13 billion in savings for taxpayers over the next five years.
“Many individuals who have grappled with changes in employment and increased expenses due to inflation have inquired about measures Pennsylvania can take to provide assistance,” Baker stated. “This proposal will present a clear alternative to the governor’s extensive spending budget plan. It is designed to help us achieve a more family-friendly balance between expenses and services.”
Baker stated that the tax reductions would benefit all Pennsylvania families and infuse an extra $3 billion into the state’s economy, rather than expanding the government and arbitrarily selecting winners and losers. She contrasted the plan with Gov. Josh Shapiro’s push for $3.2 billion in new government expenditure, as well as legislation from House Democrats seeking to nearly quadruple specific taxes paid by small businesses.
Baker mentioned that the tax cuts are a continuation of Senate Republicans’ long-standing efforts to shield taxpayers from unnecessary tax hikes, new spending, and unregulated growth in government size.
Senate Bill 269 was forwarded to the House of Representatives for review.
