KENNETT SQUARE, PA — A Pennsylvania House Finance Committee public hearing, held at the Kennett Library on March 12, brought together state officials, advocates, and community leaders to discuss the Working Pennsylvanians Tax Credit (H.B. 820). The proposed legislation, sponsored by State Representative Christina Sappey (D-Chester), aims to establish a state-level earned income tax credit to ease financial burdens for low- and middle-income families while boosting the economy.
Representative Sappey presented the tax credit as “a smart investment” in Pennsylvanians and their families. “Low-wage-earning families are being forced to make impossible decisions, like choosing between work or childcare or skipping a doctor’s visit due to unexpected expenses. This has significant economic ripple effects for workers and businesses alike,” she said. The proposal seeks to offer struggling families relief while generating revenue through increased economic participation. According to Sappey, every dollar granted through such credits would yield $4 in economic activity.
The initiative would provide eligible taxpayers with a refundable tax credit equal to 30% of their federal Earned Income Tax Credit. This supplementary credit would help families pay for essentials like childcare, food, and transportation. Sappey’s office estimates that nearly one million Pennsylvanians would benefit, receiving an average state credit of $650 annually, depending on family size and income.
Representative Steve Samuelson (D-Northampton), chair of the House Finance Committee, voiced strong support for the proposal. “This credit has the potential to keep families in Pennsylvania and grow our workforce,” Samuelson remarked. He emphasized the program’s proven success in other states, where earned income tax credits have helped both workers and businesses flourish.
Local leaders and advocates provided additional perspectives, highlighting how the tax credit could create stability for individuals and stimulate economic growth. Laura Manion, president and CEO of the Chester County Chamber of Business and Industry, argued that the tax credit would improve Pennsylvania’s competitiveness for businesses and workers. “Reducing the tax burden for low- and middle-income families is sound fiscal policy,” she stated.
Leah Reynolds, CEO of Kennett Area Community Service, explained how the proposed tax credit would have a lasting and meaningful impact on families in Chester County. “By putting resources directly into the hands of hardworking, lower-income families, we help them avoid financial crises and reduce reliance on social support systems,” she said.
United Way representatives also offered testimonials on how earned income tax credits benefit communities. Amanda Blevins, director of Community Impact Initiatives for Chester County United Way, noted that many families in need face financial instability due to unforeseen expenses. “For many of the calls we receive for help, the modest amount offered through this state benefit would bring stability just when it’s needed the most,” she testified.
Educational benefits of the tax credit were also highlighted. Marci Lesko, CEO of United Way of the Greater Lehigh Valley, detailed how earned income tax credits enhance opportunities for children in low-income households. “Families often use these resources for essential educational expenses, driving better outcomes in school and ultimately breaking cycles of poverty,” Lesko explained.
With strong bipartisan support, momentum for H.B. 820 continues to build. Thirty-one states, along with the District of Columbia, Guam, and Puerto Rico, currently offer similar state-level earned income tax credits based on the federal model. Advocates believe adopting the measure would place Pennsylvania in alignment with these states and improve its labor market competitiveness.
The next step for the bill is a full House vote. If passed, the Working Pennsylvanians Tax Credit could play a pivotal role in reducing economic barriers, keeping workers employed, and driving statewide economic growth. Proponents of the proposal remain optimistic about its impact, calling it a bold but necessary step for Pennsylvania’s workforce and economy.
“This isn’t just an investment in families,” Sappey concluded. “It’s an investment in the future of Pennsylvania’s businesses, workforce, and prosperity.”
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