In personal income tax, providing for alternative special tax provisions for poverty.
Impact
Should this bill be enacted, it will directly modify existing tax policies to accommodate a provision that refunds or forgives state income taxes for individuals whose incomes fall below a specific threshold. The legislative intent underscores the goal of ensuring that individuals in poverty do not have their essential needs jeopardized by state taxation. Specifically, the bill allows income tax refunds based on a percentage of the federal earned income credit for eligible taxpayers, which could significantly impact state tax revenue by reducing the tax obligation for this demographic.
Summary
Senate Bill 848 aims to amend Pennsylvania's Tax Reform Code by introducing alternative special tax provisions for individuals experiencing poverty. The bill is driven by the recognition that certain income levels may hinder individuals from affording basic necessities for themselves and their dependents. By creating these special tax provisions, the legislature seeks to alleviate some of the financial burdens faced by low-income individuals, effectively providing them with tailored tax relief mechanisms that acknowledge their unique economic situations.
Sentiment
The sentiment around SB 848 appears supportive, particularly among advocates for low-income communities who see it as a necessary step towards a more equitable tax structure. Lawmakers seem to view the bill as aligning with broader goals of economic justice, aiming to provide relief to those in need. However, there may also be caution regarding the fiscal implications for state revenue, posing a potential concern among fiscal conservatives about the sustainability of such tax relief measures.
Contention
Notable points of contention regarding SB 848 include the debate over the effectiveness and long-term implications of introducing these special tax provisions. Critics may argue that while the intention is noble, there could be concerns about whether the measure adequately addresses systemic poverty or simply serves as a temporary fix. Additionally, discussions may arise regarding the complexities involved in implementing these provisions and how they will affect broader tax revenue and public services funded by those taxes.
In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.