HARRISBURG, Pa. (KYW Newsradio) — Citing rising costs, Republicans in the Pennsylvania House of Representatives are introducing legislation for what they call “tax holidays” on everyday necessities.
Bucks County Republican state Sen. Kristin Marcell said unpredictability in costs of necessities hits the most vulnerable the hardest, thereby prompting the need for a tax holiday.
“A tax holiday is a targeted measure that allows us to provide relief while continuing our broader discussions about long term tax reform and our fiscal responsibility,” she said.
State Sen. David Rowe, the Republican chair of the state House Policy Committee, said the series of bills would give a six-month state tax holiday on electricity, cell phones, car seats and other childcare-related items. His plan would reduce Pennsylvania’s income tax from 3.07% to 2.99% for six months.
“A focused and common-sense effort to lower costs, return money to taxpayers, and push back on policies that are making life more expensive across the Commonwealth,” he said of his plan.
“Instead of growing government, we should be growing opportunity and that starts by putting money back into the pockets of Pennsylvanians.”
Marcell introduced the bill that would suspend state taxes on cell phones and electricity.
“Despite their essential nature, these services remain subject to a gross receipts tax that ultimately increases monthly bills for consumers,” she said. “That means Pennsylvanians are paying more every single month for services that they can’t live without.”
Other GOP tax holiday proposals would suspend sales tax on football and soccer equipment.
Rowe said the legislation could be in place before budget talks heat up in June, and a six-month plan would allow flexibility going forward.
Asked about cutting tax revenue while Pennsylvania’s budget is operating in a structural deficit, Rowe said, “The governor believes it's okay to spend down four and a half billion dollars of our rainy day fund, and our belief is if we don't need that money, the least we can do is give it back to the people of Pennsylvania.”
