House Co-Sponsorship Memoranda

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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted:	May 6, 2015 03:32 PM
From:	Representative Eddie Day Pashinski
To:	All House members
Subject:	Education Reinvestment and Taxpayer Relief

MEMORANDUM

TO: All Members of the House of Representatives

FROM: Representative Eddie Day Pashinski

DATE: May 6, 2015

SUBJECT: Co-sponsorship of Legislation – Education Reinvestment and Taxpayer Relief

In the near future, I intend to introduce a package of legislation increasing the Personal Income Tax (PIT) from 3.07 percent to 4.07 percent, and using those revenues to invest in education and tax relief for Pennsylvanians across the Commonwealth.

This package consists of two bills: the first bill would amend the Tax Reform Code of 1971, increasing the PIT and allocating the additional funds, and the second bill would amend the Taxpayer Relief Act, expanding the Property Tax/Rent Rebate Program.

Increasing the PIT from 3.07 percent to 4.07 percent would raise an additional approximately $4.1 billion. The first bill appropriates these revenues to the Education Reinvestment and Taxpayer Relief Fund, which allocates them in the following priority:

$690 million to Basic Education Funding;
$310 million to the State System of Higher Education;
$1 billion to PlanCon;
$1 billion to expanding the PTRR Program; and
Any remaining funds (approximately $1.1 billion) will be added to expand the homestead/farmstead exclusions.

The second bill increases the income limit for homeowners and renters under the PTRR program. Households making up to $100,000 would be eligible for a property tax rebate and households making up to $50,000 would be eligible for a rent rebate.

This legislation is designed to raise additional revenues to fund vital programs while offering desperately needed relief to homeowners and renters across the Commonwealth. This historic reinvestment in education and relief for taxpayers would allow us to reduce the property tax burden on those who most need it, ensure our children get the education they deserve and help reign in and stabilize property taxes. This proposal creates a substantial increase in new jobs through investments in education and the construction of educational infrastructure.

I hope you will join me in helping our children, our seniors, and our neighbors by supporting this important legislation.

Document #1

Description:	The first bill would amend the Tax Reform Code of 1971, increasing the PIT and allocating the additional funds.

Document #2

Description:	The second bill would amend the Taxpayer Relief Act, expanding the Property Tax/Rent Rebate Program.