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FOR IMMEDIATE RELEASE
December 5, 2005

Senate sends tax cut package to Governor
HB 515 includes PIT reduction, economic incentives

The General Assembly recently approved a measure to provide tax relief to families and small businesses while promoting economic development and job creation, according to state Senator Pat Browne, R-16th District

House Bill 515 is now before the Governor for his signature and enactment into law.

HB 515 would reduce the state Personal Income Tax, which is levied on individual wage earners and small businesses in the Commonwealth, from the current level of 3.07 percent to 3.05 percent in 2007.  Previously, Senate Republicans had amended HB 515 to provide a two-step reduction that would have reduced the PIT rate to 2.98 percent in 2008.

"While we had hoped that the Senate Republican package would be the one sent to the Governor, we also recognized that it is essential to provide relief to taxpayers and small businesses. This is a step forward in rolling back the tax rate," Senator Browne said.

Other cuts are intended to help businesses establish themselves in Pennsylvania -- including high-tech firms that often have long start-up periods and heavy losses early on.  Once established, these businesses typically expand rapidly and create good-paying jobs for skilled workers. It's a positive economic development cycle for business and families alike.

"Pennsylvania has been called unfriendly to business since its tax structure stifles economic growth and is a detriment to our efforts to attract new companies," said Senator Browne. "We must turn that around. By cutting these taxes, we send a message that Pennsylvania is a good place to live and do business. We must foster growth and job development and create good-paying jobs."

Contact:

Matt Moyer
(610) 821-8468