What Is the Fair Share Tax?
The main reason that Pennsylvania’s tax system is so upside down — with the top 1% paying only 4.3% of their income in taxes while the middle 20% pays 10% — is that the Pennsylvania Constitution prohibits us from enacting a graduated personal income tax. Sales and property taxes tend to take a higher percentage of the income of taxpayers at the bottom and in the middle than at the top. But graduated income taxes in many states — including all of our neighbors — compensate by taxing those at the top at a higher rate. We can start to fix our broken tax system by adopting what we call a Fair Share Tax which has been introduced by Senators Costa, Hughes, and Haywood as SB555. Here are the key elements of it: The Personal Income Tax which is currently set at 3.07% will be divided into two taxes. The… Continue reading







