Pennsylvania House Bill HB2179

Pennsylvania 2023-2024 Regular Session

• Introduced: 4/9/24
• Refer: 4/9/24

Caption

In personal income tax, further providing for classes of income.

Impact

If passed, HB2179 is expected to amend existing tax statutes, introducing new classifications that could provide a basis for adjusting tax rates. The proposed changes could influence the overall tax structure by potentially lowering rates for lower-income individuals while increasing them for higher earners. The anticipated outcome would be a shift toward a system that prioritizes tax equity, aiming to alleviate the financial strain on lower-income households and address issues of income inequality within the state.

Summary

House Bill 2179 aims to amend provisions related to personal income tax by establishing further classes of income. This bill is designed to create a more structured and equitable tax system that can better accommodate varying levels of income. The intention is to ensure that taxation reflects the ability of individuals to pay, with the potential for more progressive tax rates as different income classes are defined. Supporters believe this could lead to a fairer distribution of the tax burden and improve state revenue, which is critical for funding public services and infrastructure.

Sentiment

The sentiment among lawmakers regarding HB2179 appears to be predominantly supportive, especially from those advocating for tax reform and increased fiscal equity. Proponents argue that the bill represents a significant step toward a more just tax system, while critics express concerns that the introduction of new classes could complicate the tax code, lead to unintended consequences, or result in increased taxes for some demographics. This divergence in views highlights the broader debate over tax policy and fiscal responsibility.

Contention

One notable point of contention regarding HB2179 involves the potential implications of introducing new classes of income. Opponents worry that the bill could lead to inequities or complications in tax filings, particularly for small business owners and self-employed individuals. Additionally, discussions surrounding how these changes might affect state revenue and economic growth have been prominent, with concerns raised about ensuring that any adjustments do not hinder economic recovery or growth, particularly in challenging financial times.