In the 2024 election, the top issue for voters was affordability. People may be working as hard as ever, but their money is not going as far. In the months since inauguration, the White House has failed to live up to its promise to lower costs on day one. In fact, their reckless policies have only raised prices on U.S. goods and are driving our nation into a recession. 

To help hardworking taxpayers, last week we passed the Working Pennsylvanians Tax Credit in the Pa. House. This bill, by Rep. Christina Sappey (D-Chester), is like the federal Earned Income Tax Credit (EITC) — where working families get money back annually from the federal government. 

When I think about why my dad emigrated to the United States from Pakistan in the 1960s, like many immigrants, it was about his pursuit of the American Dream. That dream meant, if you worked hard and did the right thing, you would be able to raise a family and prosper. Unfortunately, for so many, the American Dream is becoming more and more out of reach. While the rich get richer, working families are beaten up by stagnant wages, skyrocketing housing costs, high healthcare premiums, and student debt.

With rising costs of goods and services, painful tariffs, and inflation, people desperately need relief; we are acting at the state level to help them. Unlike big corporations, which all too often use profits and corporate tax breaks for stock buybacks, instead of investing in raising workers' pay, the Working Pennsylvanians Tax Credit will be invested back into families and the community. In fact, it is estimated that, for every dollar invested in the Working Pennsylvanians Tax Credit, nearly $1.50 – $2 will be invested back into the economy.

The Working Pennsylvanians Tax Credit is modeled on one the most powerful antipoverty bills in American history: the federal EITC bill, which lifts about 6 million Americans out of poverty each year, half of them children. The Working Pennsylvanians Tax Credit will give families who already get money from the federal EITC bill another $200 to $2,000 a year to their bank accounts. So, while it may not have gotten the attention of the cannabis bill, I believe it is much more potent. 

How many people would qualify for the tax credit?

Nearly 1 million Pennsylvanians will be eligible for this money.

How much would I get back at tax time if I'm eligible?

Between $200 and $2,000 a year. 

Could people get both federal and state tax credits?

Yes. If you qualify for the federal tax credit, you’d also get money back from the state.

When does this become law?

House Democrats, with our one-seat majority, passed this bill with overwhelming bipartisan support. Senate Republicans now must show they can govern and run this bill in their chamber. Once they do, Governor Josh Shapiro has said he is ready to sign the bill into law. Senate Republicans must pass this bill before it can become law.