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Pennsylvania House lawmakers to vote on whether to eliminate 2 taxes on cellphones

Pennsylvania House lawmakers to vote on whether to eliminate 2 taxes on cellphones
YEAH, BRIAN, THERE WAS INITIALLY A VOTE EXPECTED TODAY ON A BILL THAT WOULD GET RID OF TAXES THAT HAVE TO DO WITH CELL PHONE USE IN PENNSYLVANIA. THAT VOTE DELAYED UNTIL AT LEAST TOMORROW. BUT SUPPORTERS OF THIS PROPOSAL SAY PEOPLE ARE JUST PAYING TOO MUCH IN SURCHARGE AND TAXES EACH MONTH. THESE ARE REALLY ESSENTIAL DEVICES AND OUGHT TO BE EXEMPT. THAT’S THE THINKING BEHIND A PROPOSAL TO EXEMPT CELL PHONE USE FROM A 6% SALES AND USE TAX AS WELL AS A 5% GROSS RECEIPTS TAX REPRESENTATIVE BEN WAXMAN IS A CHIEF SPONSOR ON THE PROPOSAL. IT’S ABOUT $100 OVER THE COURSE OF A YEAR FOR SOMEONE WHO JUST HAS A SINGLE PLAN AT THE LOWEST LEVEL. OBVIOUSLY, MOST FAMILIES HAVE MANY MORE DEVICES THAN THAT. SO IT YOU KNOW, THE AMOUNT THEN INCREASES. WAXMAN SAID THE SHAPIRO ADMINISTRATION ESTIMATES. $124 MILLION WOULD REMAIN WITH PENNSYLVANIA HOUSEHOLDS EACH YEAR BY ELIMINATING THE TAXES. BUT AT A COMMITTEE MEETING LAST WEEK, SOME REPUBLICANS WORRIED IF THE STATE CAN AFFORD TO LOSE THOSE DOLLARS IN THE YEARS TO COME. YEAH, IT’S FINE. THIS YEAR WHEN WHEN WE HAVE A SURPLUS. BUT IT’S PRETTY OBVIOUS MOVING FORWARD. WE’RE NOT GOING TO HAVE ONE. THE PROPOSAL ALSO DOES NOT ADDRESS A SEPARATE REQUEST FROM GOVERNOR SHAPIRO TO HIKE THE STATE’S MONTHLY SURCHARGE ON PHONE USE FROM $1.65 TO MORE THAN $2 TO HELP PAY FOR 911 SERVICES. THIS ALL COMES AS BUDGET TALKS ARE HAPPENING BETWEEN THE GOVERNOR’S OFFICE, HOUSE DEMOCRATS AND SENATE REPUBLICANS. THAT LATTER GROUP, THEY’RE CONCERNED THAT A BUDGET PASSED BY HOUSE DEMOCRATS ALREADY THIS MONTH COULD POTENTIALLY PUT THE STATE IN SOME DIRE FINANCIAL STRAITS DOWN THE LINE IN
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Pennsylvania House lawmakers to vote on whether to eliminate 2 taxes on cellphones
Pennsylvania House lawmakers are expected to vote this week on whether to get rid of a pair of taxes on cellphones. "These are really essential devices and ought to be exempt," said Rep. Ben Waxman, D-182.That's the thinking behind the proposal to exempt cellphone use from a 6% sales and use tax, as well as a 5% gross receipts tax.Waxman is a chief sponsor of the proposal."It's about $100 over the course of a year for someone who just has a single plan at the lowest level. Obviously, most families have many more devices than that, so the amount then increases," he said.Waxman said the Shapiro administration estimates $124 million would remain with Pennsylvania households by eliminating the taxes. But at a committee meeting last week, some Republicans worried if the state can afford to lose those dollars in the years to come."It's fine this year when we have a surplus, but it's pretty obvious moving forward we're not going to have one," said Rep. Keith Greiner, R-43.This proposal also does not address a separate request from Gov. Josh Shapiro to hike the state's monthly surcharge on phone use from $1.65 to more than $2 to help pay for 911 services.The proposal comes as lawmakers and the governor's office are working to hammer out a new budget. Senate Republicans have said a budget passed by House Democrats already could leave the state financially challenged in years when tax revenue isn't as good.

Pennsylvania House lawmakers are expected to vote this week on whether to get rid of a pair of taxes on cellphones.

"These are really essential devices and ought to be exempt," said Rep. Ben Waxman, D-182.

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That's the thinking behind the proposal to exempt cellphone use from a 6% sales and use tax, as well as a 5% gross receipts tax.

Waxman is a chief sponsor of the proposal.

"It's about $100 over the course of a year for someone who just has a single plan at the lowest level. Obviously, most families have many more devices than that, so the amount then increases," he said.

Waxman said the Shapiro administration estimates $124 million would remain with Pennsylvania households by eliminating the taxes. But at a committee meeting last week, some Republicans worried if the state can afford to lose those dollars in the years to come.

"It's fine this year when we have a surplus, but it's pretty obvious moving forward we're not going to have one," said Rep. Keith Greiner, R-43.

This proposal also does not address a separate request from Gov. Josh Shapiro to hike the state's monthly surcharge on phone use from $1.65 to more than $2 to help pay for 911 services.

The proposal comes as lawmakers and the governor's office are working to hammer out a new budget. Senate Republicans have said a budget passed by House Democrats already could leave the state financially challenged in years when tax revenue isn't as good.