HARRISBURG – PA Senate Republicans are advancing a $3 billion tax cut as a counter-proposal to a budget from Democrat Gov. Josh Shapiro as each side offers a competing vision for how to use a massive cash surplus. Senate Bill 269 would reduce the personal income tax from 3.07% to 2.8% to put more money back in worker’s paychecks. The bipartisan bill also would eliminate the 4.4% gross receipts tax on electric utilities, a tax that dates back to the 1800s and is passed through to residential and commercial electric customers. Senate Majority Leader Joe Pittman says it’s time to invest some of that money to the taxpayers. Senate Appropriations Committee Chairman, Sen. Scott Martin says taxpayers deserve to get some of the surplus returned to them. Republicans said it would be the largest tax cut in the state’s history. In the coming weeks, budget negotiations could revolve around Shapiro’s bid to boost spending by $3 billion, versus the Republican proposal to cut taxes by $3 billion. Democrats say the bill won’t pass in the Democrat-controlled PA House.
