HARRISBURG -In an effort to ease the tax burden for hardworking PA families, Lehigh County Rep. Ryan Mackenzie has unveiled a series of tax cut proposals. The ten bill PA Families Tax Relief proposals would impact the personal income tax, electric bills, cell phone bills, cribs and strollers, and more. Mackenzie is circulating co-sponsorship memos seeking bipartisan support for the legislation, which will be introduced in the coming days. The PA Families Tax Relief proposals are as follows.
• Bill would provide several permanent exemptions from the Sales and Use Tax (SUT) which are intended to help families reduce costs for their small children. The exemptions would include children’s and library books, toys, cribs and strollers, and youth sports equipment.
• Bill would provide tax holidays to help reduce burdens when families are making improvements to their homes or getting ready to send their children back to school through temporary relief from the SUT. The tax holidays would include Energy Star appliance for one year, personal property for disaster preparedness and impact resistant doors and windows for one year, tools and home improvement equipment for one week, and back-to-school supplies for two weeks.
• Bill would provide a permanent exemption from the Gross Receipts Tax (GRT) levied on electric bills.
• Bill would provide a permanent exemption from the SUT levied on pet food.
• Bill would provide a permanent exemption from the SUT and GRT levied on cell phone bills.
• Bill would increase funding for the homestead/farmstead exclusion by redirecting all revenue generated from gaming that is designated for the General Fund to be used for the exclusion program.
• Bill would reduce the PIT from 3.07% to 2.99% over a two-year period.
• Bill would provide a permanent exclusion to volunteer firefighters and emergency medical services personnel from the SUT for protective equipment purchases.
• Bill would reduce the Inheritance Tax for direct descendants and siblings from the current 4.5% and 12% to align with the PIT.
• Bill would increase Pennsylvania’s Child and Dependent Care Tax Credit to match the federal credit of $3,000 for one qualifying individual and $6,000 for two more qualifying individuals over a three-year period.
Mackenzie is circulating co-sponsorship memos seeking bipartisan support for the legislation, which will be introduced in the coming days.