$13B Tax Cut Clears Major Legislative Hurdle

A plan that cuts taxes in Pennsylvania by $13 billion over the next five years cleared the state Senate on Tuesday. The proposal repeals a 2004 personal income tax raise and eliminates the gross receipts tax charge on electricity bills. It also makes a $6 million annual recurring transfer to the Alternative Fuels Incentive Fund and creates a $500 tax credit for volunteer paramedics. Republican leaders say the proposal eases inflationary pressure for wage earners, business owners and “anyone who pays an electricity bill,” while simultaneously reversing the downward economic spiral stemming from population loss.