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Taxes

Community Voice

New state taxes and revenue sources

Governor Shapiro's 2026-27 budget proposal sought billions in new revenue partly through new taxes and tax-structure changes, including on skill games and recreational marijuana, plus other modifications. Lawmakers ultimately passed a budget that blocked the governor's proposed tax hikes while addressing spending needs, leaving ongoing debate over whether Pennsylvania should raise new taxes or rely on existing revenues and reserves.

Should Pennsylvania enact new taxes (such as on skill games or recreational marijuana) to fund state priorities?

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Sources

PA House Republican Appropriations Committee — https://www.pabudget.com/2627BudgetProposal
Enactment of new taxes and changes to the current tax structure and tax credits totaling $1.88 billion in new revenue, primarily by taxing skill games, recreational marijuana, and a minimum wage increase.
Commonwealth Foundation — https://commonwealthfoundation.org/2026/07/12/pa-passes-2026-state-budget-blocking-shapiro-tax-hikes
Pa. Lawmakers Pass 2026-27 State Budget, Blocking Shapiro's Tax Hikes and Preserving Emergency Savings.
Governor Josh Shapiro — https://www.pa.gov/governor/newsroom/2026-press-releases/gov-shapiro-2026-27-budget-proposal-to-keep-doing-what-s-working
The 2026-27 budget proposal maintains a balanced budget, continues cutting taxes, and saves taxpayers millions of dollars while keeping Pennsylvania moving forward.
Positions on this issue  ·  liberal → conservative
  1. Enact multiple new taxes including on marijuana and skill games to fully fund expanded services without using reserves
  2. Support limited new targeted taxes if paired with continued cuts elsewhere and affordability measures
  3. Avoid major new taxes for now and balance the budget with existing revenues plus modest reserve use
  4. Block new taxes entirely and require spending cuts or efficiency savings to close any gaps
  5. Cut existing taxes further and shrink government rather than seeking any new revenue sources