Rabb announces Fair Share Tax Plan legislation

Pennsylvania House Democratic Caucus    October 19, 2023 | 9:27 AM

HARRISBURG, Oct. 19 – State Rep. Chris Rabb, D-Phila., announced today that he is preparing to introduce legislation (H.B. 1773) that would establish a fair share tax plan in Pennsylvania, changing the state’s longstanding regressive income tax.

According to a 2019 report from the Pennsylvania Budget and Policy Center, 20% of families with the lowest incomes pay roughly 14% of their income on state and local taxes, while those in the top 1% only pay 6%.

“It’s truly absurd that the bottom 60% of income earners are, on average, paying nearly double the tax rate of what the richest Pennsylvanians pay,” Rabb said. “This legislation will not only make the tax system fairer, but it will help to reduce the overall budget deficit and raise $6.22 billion in new tax revenue. That’s a win-win-win.”

Rabb said the legislation would reduce the state income tax on wages and interest to 1.9% and increase the tax on passive income to 12%, raising $6.22 billion in new revenue.

“We have an opportunity to take Pennsylvania’s upside-down tax structure and turn it right side up,” Rabb said. “Everyone should pay their fair share.”