Category: Public Policy

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Only Wealthy Immigrants Need Apply: The Chilling Effects of “Public Charge”

  By Immigration, Pennsylvania

By David Dyssegaard Kallick, Cyierra Roldan and Marc Stier Originally published at by the Pennsylvania Budget and Policy Center of the Keystone Research Center. The day the new public charge rule goes into effect, the Pennsylvania Budget and Policy Center and the New York Fiscal Policy Institute are releasing a report demonstrating the harm it will create for Pennsylvania families, the Pennsylvania economy and state revenues. The “public charge” inadmissability test has been part of federal immigration law for more than one hundred years. Federal law allows the government to deny permanent residence (a “green card”) to a person “likely at any time to become a public charge.” The Trump administration’s new regulations significantly stiffen this forward-looking test. The public charge rule will make it much more difficult for low- and moderate-income families to make their lives in the United States if they are considered likely to use public benefits… Continue reading

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Lawmakers Should Take a Mulligan When Governor Wolf Vetoes Tax Credit for More Petro Plants

  By Economic Development, Environment, Marcellus Shale, PA Budget and Policy Center, PBPC Blog posts

HARRISBURG – Keystone Research Center economist Stephen Herzenberg and Pennsylvania Budget and Policy Center director Marc Stier issued the following statement in the wake of the Pennsylvania General Assembly’s approval yesterday of a multimillion-dollar tax credit for future petrochemical and fertilizer plants that use Pennsylvania natural gas as a feedstock. “We strongly urge Governor Wolf to veto HB 1100, an  inadequately considered subsidy for petrochemical companies and then urge lawmakers of both parties to reconsider their support so that the governor’s veto is sustained. Doubling down on subsidies for petrochemical and plastics companies at this moment of history is like buying more deck chairs for the Titanic.” “The minimum due diligence the Pennsylvania General Assembly should demand of itself is to ask the Independent Fiscal Office to evaluate the advisability of this subsidy, considering: the consequences of expanding petrochemical production in western Pennsylvania for carbon emissions and other pollutants, and… Continue reading

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Corporate Tax Cuts Since 2002 Now Cost PA $4.2 Billion Yearly: Pennsylvania Should Pass Worldwide Combined Reporting

  By PA Budget and Policy Center, Pennsylvania State Taxes, Policy reports, Taxation

Originally published at KRC-PBPC here. By Stephen Herzenberg, Diana Polson, and Marc Stier This paper focuses on the details of one part of this story: the cuts in corporate taxes in Pennsylvania since 2002 that have reduced revenues by what is now $4.2 billion per year and have created a tax system that is among the most unfair in the country.   Pennsylvania’s tax-cutting, shaped by the corporate-sponsored narrative, has taken a variety of forms. Under both Republican and Democratic governors, we have entirely eliminated one of our two major taxes on corporations, the Capital Stock and Franchise Tax (CSFT). We have also allowed businesses to lower their reported profits subject to the largest remaining corporate tax—the Corporate Net Income (CNI) tax. And we have continued to give multi-state corporations free rein to cook their books and exploit corporate tax loopholes to their reported income subject to the CNI. The result is that 73% of corporations that do business in Pennsylvania pay no corporate income tax at all.1  This policy brief updates estimates of the cost each year to the Pennsylvania budget from corporate… Continue reading

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Corporate Tax Cuts Since 2002 Cost PA $4.2B Annually

  By Corporate Taxes, Diana Polson, Pennsylvania, Pennsylvania Budget, Pennsylvania State Taxes, Stephen Herzenberg, Taxation

By Stephen Herzenberg, Diana Polson, and Marc Stier Closing Delaware loophole, instituting worldwide combined reporting would level the playing field for small businesses and generate over $700 million a year to invest in PA communities This paper focuses on the details of one part of this story: the cuts in corporate taxes in Pennsylvania since 2002 that have reduced revenues by what is now $4.2 billion per year and have created a tax system that is among the most unfair in the country.   Pennsylvania’s tax–cutting, shaped by the corporate-sponsored narrative, has taken a variety of forms. Under both Republican and Democratic governors, we have entirely eliminated one of our two major taxes on corporations, the Capital Stock and Franchise Tax (CSFT). We have also allowed businesses to lower their reported profits subject to the largest remaining corporate tax—the Corporate Net Income (CNI) tax. And we have continued to give multi-state corporations free rein to cook their books and exploit corporate tax loopholes to their reported income subject to the CNI. The result is that 73% of corporations that do business in Pennsylvania… Continue reading

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On Today’s Ruling on the Affordable Care Act Individual Health Insurance Mandate

  By Health Care, PA Budget and Policy Center, PBPC Blog posts

Originally published at KRC-PBPC here. Today’s 2-1 decision by a federal appeals court rules the ACA’s requirement that people have health insurance is unconstitutional because Congress has repealed the tax penalty for those who don’t have health insurance. But it steps back from the conclusion reached a year ago by Federal Judge Reed O’Connor that the entire ACA is unconstitutional. Both parts of the decision were expected by reasonable legal scholars. The individual mandate was upheld by the Court in NFIB v. Sibelius in 2012 on the grounds that it was an exercise of Congress’s power to tax individuals. The repeal of the tax undermined this rationale for the individual mandate put forward by Chief Justice Roberts in that case. Judge O’Connor went much further and argued that without the individual mandate, the entire ACA is unconstitutional, even though there was no explicit indication in the law that said the… Continue reading

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Judicial Gerrymandering is Back

  By Constitutional Law and Civil Liberties, Courts, Judicial Gerrymandering, PA Constitutional Law

Originally published by KRC-PBPC here. Republicans who control the Pennsylvania House of Representatives couldn’t find time to raise the minimum wage this week. But they did find time to take revenge on Pennsylvania judges for protecting our rights to vote and to have Congressional districts that are not gerrymandered in their favor. They did this by passing a proposed amendment to the Pennsylvania Constitution that will change how we elect judges and justices to our appellate courts, including our Supreme Court. Instead of electing them statewide, if this amendment becomes part of our Constitution, we will elect them from districts that, of course, would be drawn by members of the General Assembly. As we explained in detail in this blog post, this proposed amendment will, in two ways, give the General Assembly far more influence over the courts than is appropriate in a government that respects the separation of powers. By… Continue reading

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Some Questions About the Warren Plan for M4A

  By 2020, Elections, Health Care, Public Policy

This is the second of two post on the Warren plan to finance Medicare for All. The first dealt with why I think the time is ripe for M4A and especially for Warren’s version of it. This second post is about some questions that have been raised about Warren’s plan from the left. The Warren plan calls on businesses that have 50 or more employees and provide health insurance to them to pay a the federal government roughly 98% of what they pay for that insurance. A critique of the plan in Jacobin said that businesses would be able to escape from this requirement by reclassifying employees as independent contractors or by breaking themselves down into units with 49 or fewer employees. The whole question of reclassifying employees as independent contractor is not a new issue. There already are many incentives to do that. There are also business incentives to not… Continue reading

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The Warren Plan and the Prospects for Medicare for All

  By 2020, Elections, Health Care, Public Policy

I’ve been ambivalentabout the politics and policy of single-payer for a long time. That’s for three reasons First, while I by and large don’t think that a more left-wing program will hurt Democrats in the general election—just the opposite is true—there are certain ways it can hurt. The first is if we put forward plans that require tax increases on the working and middle classes. I do think that ultimately some of those tax increases will be necessary and that the benefits received in return for them will be greater than the costs of the tax increases. But it is a fundamental rule of politics that people are more agitated by what they are losing than what they are gaining. And talking about tax increases for future benefits is hard to explain and hard to defend especially because most Americans are not terribly well-informed about politics and public policy and… Continue reading

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Election Reform Enacted!

  By Elections and Voting, PA Budget and Policy Center, PBPC Blog posts

Originally published at KRC-PBPC here. Yesterday, Governor Wolf signed Act 77, historic legislation that expands the opportunity to vote in Pennsylvania. The legislation includes the following provisions: No excuse mail-in voting: The law creates a new option to vote by mail without providing an excuse, which is currently required for voters using absentee ballots. Pennsylvania joins 31 other states and the District of Columbia in instituting mail-in voting. 50-day mail-in voting period: All voters can request and submit their mail-in or absentee ballot up to 50 days before the election, which is the longest vote-by-mail period in the country. The law also allows county election officials to establish an unlimited number of satellite offices where citizens can register, pick up a mail-in ballot, and deposit their ballot. Establishing satellite offices in communities that have historically low voting rates will do much to encourage more Pennsylvanians to vote. Permanent mail-in and absentee ballot… Continue reading