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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | April 14, 2023 01:03 PM |
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| From: | Representative Christopher M. Rabb and Rep. Elizabeth Fiedler, Rep. Sara Innamorato, Rep. Rick Krajewski, Rep. Joshua Siegel |
| To: | All House members |
| Subject: | Establishing the Fair Share Tax Plan |
| Pennsylvania’s tax system continues to place a greater burden on our most financially vulnerable citizens. As of 2019, the Pennsylvania Budget and Policy Center found that 20 percent of families with the lowest incomes pay roughly 14 percent of their income on state and local taxes, while those in the top one percent only pay six percent. The bottom 60 percent of income earners, on average, pay at nearly double the tax rate of what the richest Pennsylvanians pay on average. It is time we made crucial changes to rectify Pennsylvania’s longstanding regressive income tax. We will be introducing one of the following three versions of the Fair Share Tax Plan: Option One would raise $2.6 billion in new tax revenue. Under this plan, the personal income tax on wages and interest would decrease from 3.07 percent to 2.8 percent, and the income tax would increase to 6.5 percent on passive income from things like net profits, dividends, net gains derived from rents, royalties, patents and copyrights, gambling and lottery winnings and net gains derived through estates and trust. Option Two would raise $6.22 billion annually by decreasing the income tax on wages and interest to 1.9 percent and increasing the tax on passive income to 12 percent. Option Three is a middle-ground between the first two options, decreasing the income tax on wages and interest to 2.35 percent and increasing the tax on passive income to 9.25%. These solutions will both reduce the overall budget deficit as well as provide more relief for the majority of our constituents.Under the Fair Share Tax Plan, nearly 85 percent of Pennsylvanians would see either a decrease or no change in their taxes. Please join us in co-sponsoring this important legislation to create a more equitable income tax payment system in Pennsylvania. |
Document #1
| Description: | Option One would raise $2.6 billion in new tax revenue. Under this plan, the personal income tax on wages and interest would decrease from 3.07 percent to 2.8 percent, and the income tax would increase to 6.5 percent on passive income from things like net profits, dividends, net gains derived from rents, royalties, patents and copyrights, gambling and lottery winnings and net gains derived through estates and trust. | |
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Document #2
Introduced as HB1773
| Description: | Option Two would raise $6.22 billion annually by decreasing the income tax on wages and interest to 1.9 percent and increasing the tax on passive income to 12 percent. | |
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Document #3
| Description: | Option Three is a middle-ground between the first two options, decreasing the income tax on wages and interest to 2.35 percent and increasing the tax on passive income to 9.25%. |
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