ICYMI: Proposed Tax Hike Threatens PA Small Businesses

In case you missed it, Pennsylvania House Democrats held a hearing of the House Finance Subcommittee on Tax Modernization and Reform on Friday to review House Bill 1773, known as the “Fair Share Tax Plan,” legislation that would quadruple the tax rate for small businesses throughout the Commonwealth. If enacted, this bill would raise taxes on the nearly 180,000 small businesses currently operating in Pennsylvania, including S-corporations, partnerships, and sole proprietors, from the current rate of 3.07 percent to a staggering 12 percent.

The PA Chamber is at the forefront of pushing back against this proposal. In a series of articles published last week by Broad + Liberty, the Center Square, and the Central Penn Business Journal, PA Chamber Director of Public Affairs Michael Plummer said this legislation would “sabotage our economic competitiveness and undermine bipartisan efforts to attract and retain businesses in Pennsylvania.”

“The proposal that House Democrats are scheduled to consider tomorrow would destroy small businesses across the Commonwealth by quadrupling their taxes overnight.” Plummer said. He also underscored the ongoing challenges faced by employers, including inflation, workforce shortages, and supply chain disruptions, urging policymakers to prioritize policies that support small business growth and foster a competitive business environment.

You can find our full statement here.


Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.