HARRISBURG (TNS) — State Attorney General Josh Shapiro is calling on the General Assembly to act immediately to help Pennsylvanians with rising cost of gas, food, and other household goods by putting money back in their pockets through his three-point tax elimination and rebate plan.
Speaking outside the East Pennsboro Township home of one his supporters on Thursday, Shapiro called his plan “a common sense bipartisan approach to give people relief today.”
He proposes eliminating an 11% gross receipt and sales tax on cell phone service, giving a one-time $250 per-vehicle gas refund to motorists, and expanding the state’s property tax and rent rebate program to as many as 275,000 more homeowners and renters.
“I hope the legislature would act now,” said Shapiro, the presumed Democratic gubernatorial nominee, “but if they don’t, I’ll be prepared on day one as Pennsylvania’s next governor to act to put these resources into people’s pockets.”
He estimates the plan would cost between $2.1 billion and $2.7 billion.
Money to pay for it could come from the approximate $6 billion sitting in reserves from state reserves and the unspent federal American Rescue Plan dollars, he said.
“Our plan is not pie in the sky,” Shapiro said. “It’s fully paid for and it’s responsible.”
Joining Shapiro for the event were his chosen running mate, state Rep. Austin Davis of Allegheny County, and Rep. Patty Kim, D- Dauphin County, who is seeking re-election to a redrawn House district that now includes East Pennsboro Township. Kim may face a primary challenge from Camp Hill resident Heather MacDonald, who is seeking signatures to get on the Democratic primary ballot.
The gas rebates, as Shapiro’s plan proposes, would be available to anyone with a vehicle registered in Pennsylvania, up to four vehicles per household, to help offset the increased fuel prices.
Davis said other lawmakers have called for gas tax holidays to provide relief at the pump but there’s no guarantee the savings from lifting part or all of the state’s 58.76-cent per-gallon gas tax would be passed on to Pennsylvania motorists.
“We are simply not interested in helping oil company executives get richer or subsidizing out-of-state motorists driving,” Davis said. “The legislature should help our families right now and pass this plan. We can’t afford to wait till the next administration to give Pennsylvanians’ relief.”
Further Shapiro said the gas tax goes to pay for road and bridge improvements and support the state police operations. Diverting money away from either of those areas “is so reckless,” he said.
His cell phone tax elimination proposal is estimated at saving Pennsylvanians $317 million on their cell phone bills.
It would not affect the $1.65 surcharge on those bills that goes to fund county 911 centers. But it would reduce revenue that supports the state’s general fund budget by that amount.
Shapiro said under his administration he would offset that loss with “smart budgeting.”
“We’re going to cut taxes, and we’re going to increase our investment in things that really matter like education and public safety and economic development,” he said. Shapiro further hinted that as governor, his first budget would include a broad base plan to further save taxpayers’ money.
The third piece of his proposal that would benefit disabled adults and older Pennsylvanians calls for boosting the maximum property tax rebate to $1,000, from the current $650. It also proposes raising the maximum income eligibility threshold to $30,000 for renters, currently $15,000, and to $50,000 for homeowners, now $35,000.
According to the Department of Revenue, 466,637 people filed for rebates in 2019, the most recent year for which data is available, and those rebates totaled roughly $222.5 million.
Kim said she supports this plan and believes it would make a positive difference for Pennsylvania families.
“Josh knows that this plan is not going to solve all of our problems,” Kim said. “It’ll do this. For people burnt out from the pandemic and looking for something positive, to have leaders like Josh and Austin to say ‘I see you. I know you’re struggling. This is how I want to help and here’s our plan.’ How refreshing.”
Shapiro said he was unfamiliar with Democratic Gov. Tom Wolf’s proposal for spending $1.7 billion of the American Rescue Plan money to provide relief to families and small business owners, boost the struggling health care system and expand funding for land conservation and recreation.
“I hope the governor and the legislature would take up my plan,” he said, putting emphasis on the “my.” “ I think it would provide real relief right now for Pennsylvanians. But if they don’t, I’ll be prepared to act on day one to get this done. I think this is the kind of package that can earn bipartisan support.”
