Against the backdrop of escalating economic uncertainties, House Democrats have introduced a bill that would substantially raise the tax rate on passive income for small businesses across the state.

House Bill 1773, titled the “Fair Share Tax Plan” proposes an increase in taxes on passive income sources for small businesses, including S-corporations, partnerships, and sole proprietors, from the current rate of 3.07 percent to a staggering 12 percent.

This increase would affect all of Pennsylvania’s nearly 180,000 small businesses, along with the millions of workers they employ.

The bill, authored by Representative Christopher M. Rabb (D-Philadelphia) and co-sponsored by Rep. Elizabeth Fiedler (D-Philadelphia), Rep. Rick Krajewski (D-Philadelphia), and Rep. Joshua Siegel (D-Lehigh), positions itself as a remedy to what it describes as Pennsylvania’s regressive income tax system, aiming to alleviate the tax burden on lower-income families.

HB1773 is set for a planned hearing by the House Finance Subcommittee on Tax Modernization and Reform tomorrow afternoon.

Read more at broadandliberty.com