Josh Shapiro unveils tax cut and gas rebate plan during Western Pa. visit

Attorney General and Democratic gubernatorial candidate Josh Shapiro visited Western Pennsylvania Friday to unveil his plan to cut taxes and provide rebates in order to offset some of the rising costs residents are currently facing.

Shapiro said global forces — like the war in Ukraine, the pandemic, and supply chain issues — are leading to high prices on goods, shelter, food, and gasoline. He noted that the Pittsburgh area recently saw record-breaking gas prices for three days in a row.

At a press event in Forest Hills, he acknowledged that a Pennsylvania governor can’t have much effect on global forces, but he said the state legislature can provide relief to Pennsylvanians in the form of state tax cuts and cash rebates.

“I think we need to act where we can,” said Shapiro.

Shapiro is proposing the elimination of the state’s 11% tax on their monthly cellphone bill. He said that tax generates $317 million into the state’s general fund. Shapiro, a Democrat, took a fiscally conservative tone when talking about the cellphone tax and he said he believes the state is in good enough financial state get by without it.

“That money is going to Harrisburg and it should be going to Pennsylvanians’ pockets,” said Shapiro.

While there are 10 Republicans candidates for governor, Shapiro is the only Democratic candidate to run to try to replace Gov. Tom Wolf, who is term-limited.

Shapiro said he also wants to provide temporary relief for Pennsylvanians paying high gas prices, and is proposing the state government use its unused American Rescue Plan federal money to give each Pennsylvania registered driver a $250 cash rebate. The rebate would be given to residents per each vehicle they have registered, up to four per household.

Several Republicans have proposed temporarily reducing or eliminating the state’s gas tax as an effort to try to lower gas prices. Pennsylvania has the second highest state gas tax in nation, about 59 cents per gallon.

Shapiro said he believes lowering the state gas tax could have consequences, and might not even lead to lower prices at the pump. He noted that state gas tax money funds infrastructure repairs and state police.

“At a time when bridges are collapsing, (Republicans) want to cut infrastructure spending and defund the police,” said Shapiro.

He does support efforts from federal lawmakers to provide a federal gas tax holiday. The federal gas tax is 18 cents per gallon.

Republican candidate for governor Jake Corman was in Carnegie yesterday and said his plan to reduce the state gas tax by 50% would use ARP funds to replace any lost infrastructure or state police funds.

Shapiro said he prefers to send Pennsylvania drivers a cash rebate because he said there is no guarantee that gas companies will pass state gas tax reductions to consumers in the form of lower prices at the pump.

When asked if he had any plans to address price gouging as attorney general, Shapiro said that his ability to do so was limited because of a constitutional amendment limiting emergency powers that Republicans supported and voters approved last year.

Lastly, Shapiro wants to expand the state’s Property Tax and Rent Rebate program, which helps eligible elderly and disabled Pennsylvanians pay their rent and property taxes.

He said he wants to increase the program’s income threshold to $30,000 for renters and $50,000 for homeowners, and increase the total rebate amount to $1,000, instead of $650. Shapiro said this is necessary since people’s home costs have increased over the years.

Shapiro is calling on the state legislature to pass these proposals now, and said, if elected, he would work to pass these proposals on day one of his administration.