PENNSYLVANIA. (WHTM) – Senate Republicans say the proposed tax relief would slash personal income tax from 3.07%-2.8%.

“We have driven an agenda about empowerment. And today what we're talking about is empowering the taxpayer,” said Senator Joe Pittman.

President Pro Tempore Kim Ward says the proposal will add up to a $3 billion tax cut. It would also roll back an Ed Rendell income tax increase which he signed 21 years ago.

They also want to eliminate the 140-year-old gross receipts tax on electricity that Majority Leader Joe Pittman argues will save consumers on their energy bills.

“The gross receipts tax is probably the most regressive tax that we implement on the people of Pennsylvania,” said Pittman.

Also, the GOP argues, that instead of spending the surplus and Rainy-Day fund as Governor Shapiro wants to do, they’d rather give it back to taxpayers.

"The purpose of that rainy day fund is ultimately to protect the taxpayers. But I get tired of hearing that we have to use that money to invest in other things. So, we're here today to say to our friends on the other side of the aisle, if you want to use some of that rainy day fund to invest, let's invest it in the taxpayer, because that rainy day fund is here because of the taxpayer,” said Pittman.

Democratic Senator Vincent Hughes says this proposal is out of the blue, there was no conversation with the Governor's office, House Democrats, or House Republicans.

“The idea of having a conversation about putting Pennsylvania citizens in a better position economically in terms of more dollars in their pockets,” said Senator Vincent Hughes.

Senate Bill 269 was sent to the House of Representatives for consideration.

The budget is due on June 30.