Has Governor Shapiro Actually Cut Taxes?

Gov. Josh Shapiro desperately wants Pennsylvanians to believe he isn’t a run-of-the-mill tax-and-spend Democrat.

“The Governor has cut taxes seven times,” claims one of his latest press releases.

But a closer look reveals the contrary: Not only has Shapiro not cut taxes, but the governor also promises to raise them in his proposed state budget and his continued push for new energy taxes.

The Bogus Seven

What follows are “tax cuts” that Shapiro likes to take credit for:

1. Expanding the Property Tax/Rent Rebate (PTRR) Program.
2. Creating the Employer Child Care Contribution Tax Credit.
3. Creating the Student Loan Interest Deduction.
4. Expanding the Child and Dependent Care Tax Credit.
5. Cutting the Corporate Net Income Tax (CNIT).
6. Increasing Net Operating Loss (NOL) deductions.
7. Creating the Working Pennsylvanians Tax Credit.

While some of these provide tax relief, calling them a “tax cut” is disingenuous. Rebates and tax credits may lower taxes for some, but they do not cut the underlying tax rate.

Only the CNIT cut benefits all Pennsylvanians, and Shapiro has no right to claim credit for it. His predecessor, Gov. Tom Wolf, signed the cut into law in 2022, which will reduce the rate from 9.99 percent to 4.99 percent by 2031. Shapiro promised to accelerate the rate reduction but has completely abandoned his campaign promise, never once including it in any of his budget proposals.  

None of Shapiro’s purported “cuts” are universal and only target a select population. Seniors with fixed incomes and parents in need of daycare are certainly deserving of tax relief. However, they are not the only ones struggling, as Pennsylvanians flock by thousands to lower-tax states, such as Florida, the Carolinas, and Texas.

Moreover, few of these initiatives achieved their intended purposes.

Take the Employer Child Care Contribution Tax Credit, for example. The tax credit was supposed to make childcare more affordable. However, it remains a financial burden for families. If anything, childcare costs have only increased. The average cost for child care in Pennsylvania is about $14,910—about 12 percent of the median income and about 14 percent higher than the national average, according to Child Care Aware of America.

Increasing the NOL deduction—which allows businesses to use their losses to lower their tax liability—is another example of “too little, too late.” Even with an increased deduction, Pennsylvania’s deduction—now 50 percent and will increase in 10-point increments until 2029—lags behind most states that conform to the federal standard of 80 percent. In the meantime, businesses will continue to pass over the commonwealth until it catches up with the rest of the nation.

If anything, Pennsylvania’s tax climate is getting worse under Shapiro. The Keystone State dropped from #33 in overall business tax climate in 2023 to #36 in 2025, according to the Tax Foundation.

And that’s because Shapiro is focused on tax hikes to satisfy his reckless overspending.

Tax Increases, Not Cuts

When he had the opportunity to support one of the most significant tax cuts in recent history, the governor chose to oppose it.

“The impact of what they’re doing in Washington will have a lasting and negative impact on Pennsylvania,“ he said of President Donald Trump’s tax cuts.

Trump’s first round of tax cuts—the Tax Cuts and Jobs Act (TCJA) of 2017—benefited “all income groups,” according to Pennsylvania’s Independent Fiscal Office. These tax cuts gave Pennsylvanians, on average, $3,505 more in take-home pay, according to the Tax Foundation.

Yet, despite this benefit to hard-working Pennsylvanians, Shapiro said nothing in support of extending the cuts.

Plus, Shapiro’s latest budget proposal offers nothing but new taxes.

First and foremost, the governor proposes $6 billion in deficit spending. Left unchecked, Shapiro’s excessive spending will result in a statewide $2,100 tax hike for the average family of four in Pennsylvania.

Plus, the new spending plan institutes three new taxes, which the governor euphemistically calls “new revenue sources.” Shapiro wants to tax recreational marijuana, “skill games,” and corporate tax collections. Most of these proposals are political non-starters . To make matters worse, the governor’s budget exaggerates how much revenue these new taxes will bring in—almost triple what the Independent Fiscal Office projects.

Also, let’s not forget Shapiro’s biggest tax hike of all: his energy policies. Under his proposed “Lightning Plan” (a lethal cocktail of carbon taxes and renewable energy mandates), Pennsylvanians will pay an extra $157.2 billion in new electricity costs through 2035. This would result in families paying twice as much on their annual electric bill.

Despite his doublespeak, Shapiro continues to deny his tax-and-spend proclivities.

“I know some of you try to score political points by saying that it does,” he said during his budget address. “But saying that doesn’t make it true.”

The same can be said about the governor’s denial. Shapiro can pretend all he wants, but his spendthrift policies assuredly guarantee less disposable income for Pennsylvanians.