PA Senate Democrats

FOR EVERY PENNSYLVANIAN

money

Tax Reform

Pennsylvania’s current tax model doesn’t work for working people, but it has the potential reflect the values we have choose to make through the democratic process. Senate Democrats can improve the tax environment in the state and at the local level, starting with property taxes. Opportunities for improvement exist throughout the tax code to make the business climate better, lessen the burden on working people, and provide families with more money in their pockets. We can improve the tax atmosphere by:

  • Eliminating or Significantly Reducing Residential Property Taxes – Property taxes are antiquated, unfair, and inequitable. They are a further deterrent to people aging in the homes that they have worked throughout their lives to own. And they act as a disincentive to homeowners improving and maintaining their homes. The Senate Democrats have a plan to provide substantial property tax relief and eliminate the property taxes of 60 percent of homeowners by providing rebates. But as a caucus, we’re willing to talk about any plan that fairly eliminates residential and farmstead property taxes.
  • Updating the Personal Income Tax (PIT) – The PIT rate of 3.07% in Pennsylvania is among the lowest in the country in states that impose the tax. Included in paying the PIT are many businesses that are structured as “pass-through entities.” The Senate Democrats have a plan that will lower the PIT for individuals, while treating business or passive income differently. This will raise money, potentially to pay for property tax relief, reduce individual income tax bills, and tax business income more closely to corporate income.
  • Increase tax credits for housing and working families – While we did create the Childcare Tax Credit and the Low-Income Housing Tax Credit programs, we can expand these and make them work for more people. We are also fighting for a refundable tax credit similar to the federal Earned Income Tax Credit.