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Southwest Allegheny News

Thursday, November 21, 2024

Final hearing held on historic Pennsylvania tax cuts

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State Rep. Natalie Mihalek | Pennsylvania 40th Legislative District

State Rep. Natalie Mihalek | Pennsylvania 40th Legislative District

Rep. Natalie Mihalek (R-Allegheny/Washington) and the House Republican Policy Committee, led by Chairman Josh Kail (R-Beaver/Washington), convened the final hearing in a series to discuss House Bill 2388, the House Republican tax cut bill that would return $3 billion to the people of Pennsylvania by reducing the Personal Income Tax (PIT) rate from 3.07% to 2.8% and eliminating the Gross Receipts Tax on electric bills.

The hearing, “Historic Tax Cuts,” featured testifiers Elizabeth Stelle, director of policy analysis at The Commonwealth Foundation; Wayne Herrod, local resident; and Jim Jenkins, former business owner.

Pennsylvania’s economy is facing challenges as it struggles with an aging population and lacks incentives to retain young workers. Businesses are relocating to states with more favorable tax environments, while start-ups are deterred by what has been termed as a “start-up penalty.” Inflation has made everyday essentials such as groceries, medicine, and electricity unaffordable for many residents.

"Returning money to Commonwealth residents by lowering the tax rate is often talked about, but we are now in a position where we can actually do it. Doing so would provide a quick jumpstart to our economy and help families deal with the inflationary pressures that have plagued us since 2021," Mihalek said. "This great opportunity is why I invited Chairman Kail to the 40th District. Fighting inflation and developing our economy are bipartisan, commonsense efforts that we need to continue to pursue."

Living on tight budgets has forced Pennsylvanians into unhealthy standards of living. Testifiers shared stories of seniors choosing not to use air conditioners on hot days due to costs and being unable to afford medications. Younger citizens and families are also feeling similar pressures, sacrificing extracurricular activities or delaying long-term savings.

“As I reflect on all the assets Pennsylvania can bring to the table and has brought to the table for hundreds of years -- our geography, our natural resources, our manufacturing capabilities – the fact that we’re in decline is a shame,” said Kail. “It is cause for alarm but also cause for optimism. I believe that if Harrisburg can get out of the way and pass House Bill 2388, this state will see a fundamental transformation – more jobs, young people wanting to move here, and my own children wanting to stay here.”

To watch this complete hearing or other “Historic Tax Cut” hearings from June 11, June 17, June 18 and June 20, visit pagoppolicy.com/video/policy.

Representative Natalie Mihalek

40th Legislative District

Pennsylvania House of Representatives

Media Contact: Jordan Frei

724.875.8450

jfrei@pahousegop.com

RepMihalek.com / Facebook.com/RepMihalek

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