No Pipe Dream- Voting to make the American Dream More Realistic
In a week where we passed legislation to legalize cannabis, the most dope bill I voted for may have been the one putting money back into people’s bank accounts.
Rep. Tarik Khan May 21, 2025
By State Representative Tarik Khan
As submitted for publication to East Falls Now, Chestnut Hill Local and Roxborough Review
In the 2024 election, the top issue for voters was affordability. People may be working as hard as ever, but their money is not going as far. In the months since inauguration, the White House has failed to live up to its promise to
lower costs on day one. In fact, their reckless policies have only raised prices on US goods and are driving our nation into a recession.
To help hardworking taxpayers, last week, we passed see the Working Pennsylvanians Tax Credit in the PA House. This bill, by Rep. Christina Sappey (D-Chester), is like the federal Earned Income Tax Credit (EITC)—where working families get money back annually from the federal government.
When I think about why my dad emigrated to the United States from Pakistan in the 1960s, like many immigrants, it was about his pursuit of the American Dream. A dream that if you worked hard and did the right thing, you would be able to raise a family and prosper. Unfortunately, for so many, the American Dream is becoming more and more out of reach. While the rich are getting richer, working families are getting beaten up by stagnant wages, skyrocketing housing costs, high healthcare premiums, and student debt.
With rising cost of goods and services, painful tariffs, and inflation, people desperately need relief, so we are acting at the state level to help them. And unlike big corporations, which all too often use profits and corporate tax breaks for stock buybacks instead of investing in raising workers' pay, the Working Pennsylvanians Tax Credit will be invested back into their families and the community. In fact, it is estimated that for every dollar invested in the Working Pennsylvanians Tax Credit, nearly $1.50-$2.00 will be invested back into the economy.
The Working Pennsylvanians Tax Credit,is modeled on one the most powerful anti-poverty bills in American history, the federal EITC bill— which lifts about 6 million Americans out of poverty each year, half of them children. The Working Pennsylvanians Tax Credit will give families who already get money from the federal EITC bill another $200 to $2,000 a year to their bank accounts. So while it may not have gotten the attention of the cannabis bill, I believe it is much more potent.
How many people would qualify for the tax credit?
Nearly one million Pennsylvanians will be eligible for this money.
How much would I get back at tax time if I'm eligible?
Between $200 and $2,000 a year.
Could people get both the federal and the state tax credit?
Yes. In fact, if you qualify for the federal tax credit, you’d also get money back from the state.
When does this become law?
House Democrats, with our one-seat majority, passed this bill with overwhelming bipartisan support. Senate Republicans now must show they can govern and run this bill in their chamber. Once they do, Governor Josh Shapiro has said he is ready to sign this into law. Senate Republicans must pass this bill before this can become law.