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Bill

Bill

HB 218

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 Thomas Kutz and 2 co-sponsors

HB 218 modifies how Pennsylvania classifies personal income for state tax purposes, potentially altering tax treatment across different earning types and state revenue.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 218

Legislative bill overview

HB 218 modifies Pennsylvania's Tax Reform Code of 1971 by amending provisions related to how personal income is classified for tax purposes. The bill specifically targets the "classes of income" section, which determines how different types of earnings are taxed under state law. The exact nature of the changes is not detailed in the bill summary provided.

Why is this important

How income is classified directly affects tax liability for individuals and can shift the overall tax burden between wage earners, investors, business owners, and other income sources. Changes to income classification can have significant effects on state revenue and individual tax obligations, making this a substantive fiscal matter affecting Pennsylvania residents.

Potential points of contention

  • Progressive vs. flat taxation: Changes to income classes could alter whether Pennsylvania's tax system is more or less progressive, affecting different income brackets differently
  • Business vs. wage income treatment: The amendment may shift how business income, capital gains, or other non-wage income is taxed relative to traditional employment income
  • Revenue implications: Modifications to income classification could increase or decrease state tax revenue, potentially requiring offsetting budget adjustments or affecting public services

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

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