Today, the Senate of Pennsylvania voted to cut the Personal Income Tax (PIT) rate from 3.07 percent to 2.8 percent for working Pennsylvanians. Rothman, a long-time advocate for reducing tax burdens, voted yes.
“For decades, Pennsylvania has experienced outmigration and brain drain, with young people and skilled workers leaving Pennsylvania for better opportunities, lower cost of living, and lower tax rates,” Rothman said. “We now face a workforce and population crisis, losing our working-age residents to states with lower tax rates, or in some cases, no income tax at all.”
Census data shows Pennsylvania’s population growth is not keeping pace with other states. Pennsylvania’s population is also aging, with college graduates and working-age residents moving to states with better economic outlooks.
“If Pennsylvania wants to be competitive and stop losing to other states, we need to take action,” Rothman insisted. “Lowering the Personal Income Tax rate is a great step toward retaining residents, building a stronger economy, and keeping hard-earned dollars in the pockets of working people.”
Pennsylvania’s PIT rate was 2.8 percent from 1993 to 2004, before jumping to its current rate of 3.07 percent. Most Pennsylvania small business also pay the PIT.
“History has proven when tax rates are cut, the economy grows, wages go up and revenues climb,” Rothman added. “Lower tax rates are good for everyone.”
Senate Bill 269 (R-Gebhard) now moves to the House for consideration.
For more information, visit SenatorRothman.com