In the near future, we plan to reintroduce legislation that creates a Fair Share Tax Plan for the Commonwealth of Pennsylvania.

Pennsylvania has an unfair tax system. The Institute for Taxation and Economic Policy lists Pennsylvania among the most regressive states in the country for its unfair taxation, disproportionately impacting low- and moderate-income residents. At the same time, corporate taxes have been cut significantly since 2010, leaving hardworking Pennsylvania families with significant tax burdens.

It’s clearly time for a bold, responsible, and creative solution. The Fair Share Tax Plan reduces personal income taxes and increases taxes on wealth.

• A tax on income from work (wages and interest) would be reduced to 2.8%.
• A tax on wealth (passive business profits, capital gains, dividends, royalties, and estates) would be increased to 6.5% from 3.07%.

The Fair Share Tax does not place an unfair burden on retired Pennsylvanians, small businesses, or family-owned farms. In fact, the Fair Share Tax would cut taxes for 60% of Pennsylvania families; 25% of families would see no change in their taxes. Under the Fair Share Tax plan, the effective tax rate for the top 1% in the Commonwealth would still be below all our neighboring states while raising more than $2.6 billion in new revenue in the first year alone. Based on recent polling, over 75% of Pennsylvanians support increasing taxes on wealthy households and corporations.

This legislation complies with the Pennsylvania Constitution’s Uniformity Clause because it still imposes the same flat tax rate within each of the existing classes of income. The Pennsylvania Supreme Court decided that the Uniformity Clause requires all taxes to be uniform “upon the same class of subjects” so long as a reasonable, non-arbitrary distinction exists relative to the classification in Aldine Apartments, Inc. v. Commonwealth, 493 Pa 480, 487 (1981). This legislation meets that test. 

Please join us in sponsoring this legislation to reduce unfair taxation.