Combine Spending Restraint With New Revenue

Originally appeared in the Erie Times, December 28, 2016 Pennsylvania has been struggling with persistent budget deficits since the start of the Great Recession in 2008. And we at the Pennsylvania Budget and Policy Center have been recommending a “balanced approach” to resolving the deficit from the beginning, one that combines restraint in spending with new revenues. But since 2010, under Govs. Tom Corbett and Tom Wolf, the General Assembly has adopted an unbalanced approach. Spending has gone down but revenues have gone down faster. From 1994 to 2011, under both Democratic and Republican governors, the state spent 4.7 percent of the state’s gross domestic product. During the Corbett years that fell to 4.3 percent as spending on education and human services were sharply cut. And while, thanks to Wolf, the state has been able to restore some of those cuts, spending in the last two years remains at the… Continue reading

Pennsylvania Needs a Fairer Tax System

Originally published by the Pittsburgh Post-Gazette, December 26, 2016 Our proposal would be more equitable while also helping to close the deficit Pennsylvania faces another budget crisis. The combined deficit for this year and next is roughly $3 billion. It’s time all Pennsylvanians — and especially the members of our General Assembly — recognize that recurrent budget crises won’t stop until we fix our upside-down tax system. Federal tax rates are higher for those with higher incomes than those with lower incomes. However, combined state and local taxes, because they rely on property taxes, sales taxes and income taxes that do not have steeply graduated rates, often tax those with low incomes at roughly the same percentage as those with high incomes. Pennsylvania is worse than most states on this score. It is one of what the Institute on Tax and Economic Policy calls the “terrible 10” when it comes… Continue reading

Time to fix our upside-down tax system

Originally published by the York Dispatch, December 23, 2016 Pennsylvania has been struggling with persistent budget deficits since the start of the Great Recession in 2008. And we at the Pennsylvania Budget and Policy Center have been recommending a “balanced approach” to resolving the deficit from the beginning, one that combines restraint in spending with new revenues. But since 2010, under Gov. Tom Corbett and Gov. Tom Wolf, the General Assembly has adopted an unbalanced approach. Spending has gone down but revenues have gone down faster. From 1994 to 2011, under both Democratic and Republican governors, the state spent 4.7 percent of the state’s GDP. During the Corbett years, that fell to 4.3 percent as spending on education and human services were sharply cut. And while, thanks to Wolf, the state has been able to restore some of those cuts, spending in the last two years remains at the same level as… Continue reading

Time to Fix Our Upside-Down Tax System

Originally published at the York Dispatch on December 23, 2016. Pennsylvania has been struggling with persistent budget deficits since the start of the Great Recession in 2008. And we at the Pennsylvania Budget and Policy Center have been recommending a “balanced approach” to resolving the deficit from the beginning, one that combines restraint in spending with new revenues. But since 2010, under Gov. Tom Corbett and Gov. Tom Wolf, the General Assembly has adopted an unbalanced approach. Spending has gone down but revenues have gone down faster. From 1994 to 2011, under both Democratic and Republican governors, the state spent 4.7 percent of the state’s GDP. During the Corbett years, that fell to 4.3 percent as spending on education and human services were sharply cut. And while, thanks to Wolf, the state has been able to restore some of those cuts, spending in the last two years remains at the same level… Continue reading

For Hillary Clinton Without Tears

I’m going to try, one last time, to talk without rancor to those of you are thinking of voting for Stein or not voting at all instead of voting for Hillary Clinton. And let me start by saying that every activist I know who has played a role in actually changing public policy in a progressive direction is voting for Hillary. And that includes all of us who voted for Bernie Sanders in the primary. I know an awful lot of them. I know people have fought for civil rights laws; opposed the Vietnam War; made the Clean and Water Act possible; secured increases in the minimum wage; reformed health care; raised taxes on the rich; expanded funding for education at all levels: pre-k, K-12, higher education; enacted the tax soda; brought supermarkets into food deserts; expanded housing opportunity. We are all, without exception, voting for Hillary Clinton. Some of… Continue reading

Dorothy Stier 1930-2016

My mother came of age in a unique time for women. She went to college at the end of the World War II when, largely in response to the fear of unemployment on the return of servicemen from the war, women were being strongly encouraged to limit themselves to the role of homemaker. And that was perhaps especially true for college educated women. Working class women, even then, often had to work. But as the middle class expanded in the post-war years, the middle class idea of marriage became ever stronger. So women like my mother were encouraged by parents, like my grandparents, who tremendously valued education, to get a very good education. And they were then encouraged to stay at home with their children rather than enter the work world. Despite some appearances, my mother never really fit that mold. She worked almost her entire life. She was a telephone operator… Continue reading

New Data, Good News: Health Care

Most news is bad news. And political campaigns are more likely to flag what is wrong with our country than what is right with it. So, it’s not surprising that in the heat of a presidential election, we are more focused on what is wrong with our country than what is right with it. But as the federal government updates its statistics on income, poverty, and health care this week, we can take a moment to appreciate the good news—government at the federal and state level has been increasingly successful at encouraging prosperity. We start today with health care. The Affordable Care Act remains controversial and even those of us who support it recognize that further reforms are needed to guarantee that quality health care remains affordable to everyone. There can be little doubt that the ACA is working in Pennsylvania and beyond. Between those who bought health insurance on… Continue reading

Not Necessarily Corrupt

I don’t know any more than anyone else does of the FBI raids on Local 98 offices, the home of John J. Dougherty, and the office of Councilman Bobby Henon. Which is to say I know nothing, just like everyone else. And that’s why I’ve objected to the rush to conclude that any of those raided must have done something wrong or that Local 98 is corrupt. And even more, I’ve objected to people saying that this is one more example of the corruption of Philadelphia politics or of Philadelphia labor unions that “everyone knows about,” as one reporter put it today. We don’t know any of that and saying it doesn’t make it so. Is there some corruption in Philadelphia city government? I have no doubt there is. But I’ve got no reason to think it’s worse in Philadelphia than in any other big cities not to mention in smaller… Continue reading

How Pennsylvania Should Raise Revenues This Year

Now that a general appropriation bill has been passed by the House and Senate, the General Assembly and the Governor are turning their attention to finding the revenue to pay for it. And they are running into difficulties both reaching agreement on tax revenues that are real, recurring, and fair. But the PBPC-Senator Haywood proposal to slightly raise taxes on income from wealth meets all three criteria. Continue reading