| Last Wednesday I attended a hearing on legislation (H.B. 820), the Working Pennsylvanians Tax Cut, introduced by state Rep. Christina Sappey. This legislation would establish a 30% refundable state Earned Income Tax Credit (EITC) to provide much-needed relief to working households across Pennsylvania.
Too many hardworking Pennsylvanians struggle to make ends meet, living paycheck to paycheck while trying to achieve financial stability. The United Way of Pennsylvania (UWP) refers to these individuals as ALICE—Asset Limited, Income Constrained, Employed. House Bill 820 would support these workers by helping them cover essential expenses like childcare, food, transportation, and housing.
If this tax credit had been in place last year, the average eligible family would have received approximately $650 in 2024—a direct investment in working Pennsylvanians. The economic impact of this policy is clear: for every $1 spent on a 30% state EITC, Pennsylvania would gain $1 in economic growth and save $2 in human services spending, amounting to nearly $2 billion in total benefits to the Commonwealth.
For decades, the federal EITC has been a proven tool in reducing poverty and incentivizing work. 31 states, along with Washington, D.C., Guam, and Puerto Rico, have already adopted similar programs. It is time for Pennsylvania to join them in supporting its workforce. |
.png)
