The Inflation Reduction Act of 2022 – A Major Step Forward for the US and the World

With Stephen Herzenberg We are happy to see that a deal has been reached to address growing inflation by reducing prescription health care costs, taxing corporations and the ultra-rich, and combatting climate change and reducing energy costs. We call on the United States Senate and House of Representatives to take immediate action to pass this legislation and send it to President Bidenā€™s desk. This legislation, along with the Infrastructure law and the American Rescue Plan, again shows that Democrats are committed to meeting the needs of everyone in the country, no matter where we live or what we look like or whether we are rich and poor, by using the power of the government. Only by acting together can we ensure that we have the roads and bridges and public transit critical to our economy, affordable health care, and clean energy. And only by acting together can we give ourā€¦ Continue reading

Build Back Better: A Transformative Plan for 21st-Century America

President Bidenā€™s Build Back Better framework is an unprecedented and transformative plan to better the lives of all Americansā€”Black, brown, and white; those with low, moderate, or high incomes; the youngest children and the oldest seniors. It will help families care for children while making quality pre-K available to all 3- and 4-year-olds. It will create hundreds of thousands of good jobs, many in unionized trades and clean manufacturing while drastically cutting greenhouse gases and reducing energy costs for every household. It will reduce the cost of health care and housing for millions. And it will make college education more affordable, boosting the future prospects of our young people and our economy as a whole. It will be paid for by new taxes on the largest, most profitable corporations and the wealthiest Americans while cutting taxes for working peopleā€”all while reducing the deficit. The legislative process in America is alwaysā€¦ Continue reading

This Is How (and How Many) Pennsylvanians Are Helped by the Build Back Better Plan

Updated November 18, 2021. President Bidenā€™s Build Back Better plan is an unprecedented and transformative plan to better the lives of all Americansā€”Black, brown, and white; those with low, moderate, or high incomes; the youngest children and the oldest seniors. We have given an overview of the whole programā€”but here we want to focus on the many ways Pennsylvanians will be touched by the Build Back Better plan. These preliminary estimates of the numbers of Pennsylvanians who will benefit from Build Back Better are from official government sources. Soon, we will be updating them with additional and more detailed estimates from policy analysts outside government. How the Build Back Better plan helps Pennsylvaniaā€™s children and families Provides access to affordable child care. Child care is a huge burden for families in our state. The annual average cost of sending a young child to a child care center in Pennsylvania isā€¦ Continue reading

The Prospects for Progress in DC

News stories from Washington, D.C., are beginning to remind us of a melodrama with one cliffhanger after anotherā€”and they got worse after Speaker Pelosi decided not to hold a vote on the infrastructure bill last night. The key question appears to be: ā€œwill division between progressives and moderates in the Democratic partyā€ be overcome so they can pass a reconciliation bill, an infrastructure bill, and an increase in the debt limit? Drama is almost always a part of major policy change, and cliffhangers sell newspapers and generate clicks on the Web. But looking forward, it seems clear that much of this daily drama is hysterical. In fact, Iā€™m going to go out on a limb and say that President Biden and the Democrats in Congress are going to do all of these things within the next week or two. Why do I believe this? First, as a recent poll byā€¦ Continue reading

Small Businesses and Workers Need Help From the Stateā€”And Each Other

Thanks to the American Rescue Plan enacted by President Biden, we’re seeing the economy recover faster than people suspected was possible when we were in the depths of the pandemic recession nine months ago. But that recovery doesnā€™t include everyone. Small businesses and many working people are still hurting. They need Pennsylvaniaā€™s government to help them by using the 7.5 million dollars of our tax money the General Assembly refused to spend in June. Fifteen months after the beginning of the pandemic, small business revenue in Pennsylvania is still down 28% relative to pre-COVID levels. It has continued to decline in the last two months. As of June 21st, the number of small businesses open in Pennsylvania was below that at the start of 2020 by about 37%. The last two months have seen a decline of roughly 10 percentage points. Many workers remain in trouble, too.Ā As of May 2021,ā€¦ Continue reading

Why Pennsylvania Needs a State Earned Income Tax Credit (EITC)

By Diana Polson and Marc Stier Originally published by KRC-PBPC here. If one thing has become clear during the COVID-19 pandemic, it is that workers who do essential things like providing care for the sick, stocking shelves at grocery stores, and cleaning facilities to keep our buildings clean and safe are undervalued in our society. Despite their hard work, many Pennsylvanians earn such low wages that it remains difficult to pay for rent, food, childcare, transportation, and other necessities. We must raise wages and strengthen worker protections for low- and middle-income workers. In addition, there is another easy step Pennsylvania can take to support low-wage workers. That is a state Earned Income Tax Credit (EITC), which has been effective at reducing poverty in more than half the states across the country.  Continue reading

The real path to economic prosperity

Originally published in the Bradford Era, May 27, 2018 In the aftermath of the Trump-GOP tax cut enacted at the end of the last year, some legislators and advocates are calling for Pennsylvania to also cut tax rates for both individuals and corporations in the hopes of spurring economic growth and job creation. It is hard to think of a worse idea for our political community, not only because it is unfair, but because it has been tried and failed again and again. Pennsylvania has one of the most unequal tax systems in the country. Low-income Pennsylvanians pay 12 percent of their income in state and local taxes while middle-income Pennsylvanians pay 10 percent. But those with incomes in the top 5 percent pay only 6.8 percent of their income taxes while the top 1 percent pay only 4.2 percent. With a tax system this unfair, why should we emulateā€¦ Continue reading

Tax cuts for wealthy won’t bring prosperity to PA

Originally published in Public Opinion, March 21, 2018 In the aftermath of the Trump-GOP tax cut enacted at the end of the last year, some legislators and advocates are calling for Pennsylvania toĀ alsoĀ cut tax rates for both individuals and corporations in the hopes of spurring economic growth and job creation.Ā Ā  It is hard to think of a worse idea for our political community, not only because it is unfair, but because it has been tried and failed again and again.   Pennsylvania has one of the most unequal tax systems in the country. Low-income Pennsylvanians pay 12%Ā of their income in state and local taxes while middle-income Pennsylvanians pay 10%. ButĀ thoseĀ with incomes in the top 5% pay only 6.8% of their income taxes while the top 1% pay only 4.2%. With a tax systemĀ thisĀ unfair, why should we emulate a federal tax cut that mostly reduces taxes for those at the top?Ā Ā  It wouldnā€™t beĀ because cutting taxes for the richā€¦ Continue reading

Occupy Philly Goes to Washington (and Why It Is So Important to Keep Going).

Last Thursday I led a group of people to Washington, DC to attend a National Nurses United rally in support of a financial transactions tax (FTT) and to meet with two of Senator Bob Caseyā€™s legislative aides. Some of the people with us are heavily involved in Occupy Philadelphia. Others were HCAN, MoveOn or Neighborhood Networks supporters. They all are either sympathetic to or take part in Occupy Philly events. There were 1500-2000 spirited people at the rally. It was nice to meet some folks at the Occupy DC camp. And our meeting with Senator Caseyā€™s staff members impressively showed me why the Occupy Movement is so incredibly importance to this country right now. Meeting with Senator Casey’s Staff Senator Casey is sympathetic to our goals. His staff said that he would look at the FTT and that it fits with his support of taxing the wealthy. His aide, Jenniferā€¦ Continue reading