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Bill

HB 207

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for classes of income.

2025-2026 Regular Session Introduced by Danilo Burgos and 12 co-sponsors

HB 207 amends Pennsylvania tax law to reclassify personal income types for state tax purposes, potentially shifting tax burdens across income categories and affecting state revenue.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 207

Legislative bill overview

HB 207 modifies Pennsylvania's Tax Reform Code of 1971 by altering how personal income is classified for tax purposes. The bill specifically amends the "classes of income" provisions, which determine how different types of earnings are taxed under state law. The exact modifications are not specified in the bill's title alone, making the specific tax changes unclear without reviewing the full text.

Why is this important

Personal income tax classifications directly affect how much Pennsylvania residents and businesses pay in state taxes. Changes to these classifications can shift tax burdens between wage earners, investors, business owners, and other income categories, potentially impacting state revenue and individual finances. This is particularly significant in Pennsylvania, where personal income tax is a major revenue source.

Potential points of contention

  • Regressivity concerns: Without knowing the specific changes, modifications could either increase or decrease the tax burden on lower-income earners versus higher-income earners
  • Business impact uncertainty: Changes to income classifications may affect how self-employed individuals, entrepreneurs, or pass-through entities are taxed, creating compliance complexity
  • Revenue implications: Alterations to income classifications will have fiscal consequences for the state budget, potentially requiring offsetting measures or affecting government services

Compiled from official sources — confirm details with the bill’s official record.

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