Category: Public Policy

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Revenue Options, Real and Fake: a Minimum Wage Increase and Gaming

  By Budget, Minimum Wage, PA Budget and Policy Center, PBPC Blog posts, Pennsylvania

Originally posted at Third and State. Ten years ago was the last time Pennsylvania raised the minimum wage in advance of the federal government doing so. In those ten years, inflation has reduced the value of the minimum wage to a poverty wage. That’s why it’s time to raise it again, ultimately to $15 an hour, but immediately to $10.10. A raise in the minimum wage to $10.10 will help 1.2 million Pennsylvanians who work hard but make less than $10.10 an hour right now. Eighty-seven percent of those affected would be over age 20 (not teenagers).  Eighty-four percent of workers who will be affected by a minimum wage increase have a high school degree or more.  And 30% of affected workers have some college education. Raising the minimum wage won’t just help workers who receive it — every dollar in new wages will be spent generating economic activity that… Continue reading

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Some Things are Worse Than a Late Budget

  By Pennsylvania, Pennsylvania Budget, Pennsylvania State Taxes

From the Third and State blog. As the June 30th deadline looms, we have little more than rumors about what kind of Pennsylvania budget might be enacted by the General Assembly for 2016-17. But while some may find optimism in talk of getting the budget done, the rumors we are hearing about the details of the budget in the works are extremely worrisome. We know that everyone on both sides of the aisle wants a budget done more or less on time. All members of the House and half the members of the Senate face re-election in November, and none of them want a long, drawn-out budget and delays in funding schools and human services. Yet to reach agreement on a budget legislators have to find their way between their determination to get one done and the structural deficit that requires either some new revenues or difficult budget cuts. More… Continue reading

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Racial and Economic Patterns in the Consumption of Sugary Drinks

  By Memos, PA Budget and Policy Center, Sugary Drink Tax

To: Members of City Council, Editorial Boards and Opinion Writers From: Marc Stier, Director, Pennsylvania Budget and Policy Center Date: June 5, 2016 Re: Racial and Economic Patterns in the Consumption of Sugary Drinks The continuing debate about Mayor Kenney’s proposal to tax sugary drinks is multi-faceted. We at the Pennsylvania Budget and Policy Center have expressed our support for the policy on a variety of grounds. But here we want to address only one issue – an important misconception – about who consumes sugary drinks. A common theme of those who criticize the sugary drink tax is that it is doubly regressive. Critics say it is regressive first because, like all sales taxes, it takes a higher percentage of the income of those who have low incomes than those who have high incomes. And they say it is regressive, second, because those with low incomes and from ethnic and… Continue reading

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Why Philly Needs the Sugary Drink Tax

  By PA Budget and Policy Center, PBPC Blog posts, Philadelphia, Sugary Drink Tax

Originally appeared on the Third and State Blog on May 25, 2016 As we move closer to a City Council vote on the sugary drink tax proposal, I want to offer some final thoughts about the idea and correct some misapprehensions about it: 1.While the tax itself is regressive, and the Pennsylvania Budget and Policy Center almost always opposes regressive taxation, the program as a whole is not regressive. To begin with, the opponents of the tax are simply wrong about one aspect of it. They have been arguing that it is doubly regressive because members of low-income families consume sugary drinks at higher rates than middle- and high-income families or that African-Americans drink sugary drinks at higher rates than white people (and keep in mind that these are two groups not one). Those are myths. The research on this issue is equivocal and does not support that claim. 2.… Continue reading

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Make-Believe Budgeting in Harrisburg

  By PA Budget and Policy Center, PBPC Blog posts, Pennsylvania Budget

Originally appeared on the Third and State Blog, May 24, 2016 I’ve been doing political advocacy for over ten years and have been a teacher and writer about politics for a lot longer. I don’t surprise easily. But what I saw today at the press conference at which Senator Scott Wagner and the “Taxpayer’s Caucus” presented their three billion dollars in proposed budget cuts, left me almost speechless. I walked into the room to see a list of cuts, and near the top was a $922 million cut to the Department of Human Services (DHS). I know how devastating real budget cuts of that magnitude would be to senior citizens who get long-term care through Medical Assistance, the working poor who get health care through the same program (which is called Medicaid everywhere else), and people who are intellectually disabled and mentally ill. So I was prepared for the worst.… Continue reading

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Finally: Waste, Fraud, and Abuse!

  By Pennsylvania, Pennsylvania Budget

Originally appeared on the Third and State blog, May 24, 2016 After ribbing Senator Wagner and his fellow members of the taxpayer caucus for not understanding the basics of budgeting, I want to acknowledge that they did come up with a really good idea today. It appears that the Pennsylvania State Police take two sheets of paper to print tickets. Some intrepid investigator discovered that they could get the whole thing on one sheet of paper if they printed in landscape rather than portrait mode. At 8 cents per sheet of paper for the 542,000 tickets they print, that’s a savings of $43,384. We at PBPC are always interested in making government cost efficient and we acknowledge that this is a great idea. We hope it won’t be delayed while we study whether it’s better to print landscape mode or just use two-sided printing. Now, at this rate of savings,… Continue reading

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How to Create a Progressive Income Tax in Pennsylvania

  By Pennsylvania, Pennsylvania State Taxes, Published Op-Eds

Originally appeared as How to create a progressive income tax in Pennsylvania, in Newsworks, May 24. So, it turns out that you can actually create a fair income tax in Pennsylvania. One of the unfortunate conditions of Pennsylvania politics has been our “uniformity clause,” which prohibits taxing any one class of income at different rates. It has stood in the way of creating what most states with an income tax have, a graduated system in which those with higher incomes pay at a higher rate. A consequence of our uniformity clause is that our state and local taxes, taken together, are among the most regressive in the entire country. The Institute on Tax and Economic Policy lists Pennsylvania as one of the “Terrible Ten” states with the most unjust tax system. It’s not hard to understand why. State and local taxes take a little over 12 percent of the income of the… Continue reading

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PBPC Research Prompts Senators to Introduce Tax Fairness Legislation

  By PA Budget and Policy Center, PBPC Blog posts, Pennsylvania Budget, Pennsylvania State Taxes

Originally appeared on the Third and State blog, on May 11, 2016. Something new and unusual happened in Harrisburg today. Senators Art Haywood, Vincent Hughes and Jay Costa put forward an idea that actually could help resolve the pressing fiscal cliff we face this year, and at the same time could make our tax system more progressive. Despite partisan differences, three goals are more or less shared by everyone in Harrisburg. While their top priority may differ, for the most part, legislators all say they want: 1. to close the $1.8 billion structural deficit; 2. to spend more on education; 3. and to put no additional tax burden on low- and middle-income taxpayers. Yet no one has presented a plan to accomplish this feat. In an election year, legislators will say that they are not willing to raise the income tax or sales tax – which could generate the necessary… Continue reading

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Those Feeling the Brunt of the Soda Tax Will Also Feel Benefits

  By PA Budget and Policy Center, Philadelphia, Published Op-Eds, Sugary Drink Tax

Originally published as Those feeling brunt of soda tax will also feel benefits, Philadelphia Daily News, April 19, 2016 THE SUGARY-DRINK tax proposed by Mayor Kenney, also known as the “soda tax,” is controversial because it takes a greater share of the income from poor families than rich ones. And since we at the Pennsylvania Budget and Policy Center are fundamentally committed to economic justice, we are always inclined to be suspicious of taxes that do that. So it may come as a surprise that we have concluded, overall, that the sugary-drink tax proposed by the mayor is a good idea. Though the costs fall more heavily on those with low incomes, for two reasons, more of the benefit of the tax will go to low-income Philadelphians, as well. The first benefit of the tax flows from how the new revenue will be spent – on pre-K education, community schools, and… Continue reading

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Who Benefits from the Philadelphia Soda Tax?

  By Sugary Drink Tax

The tax on sugar-sweetened beverages (SSBs) proposed by Mayor Kenney, also known as the “soda tax,” is controversial mainly because, like other sales taxes, it takes a greater share of the income of poor families than rich ones. However, while the costs of the soda tax fall more heavily on those with low incomes, more of the benefit of the tax will go to low-income Philadelphians. This report examines those benefits. Click here to read full-screen or print.  Continue reading