Category: PBPC Blog posts

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Rep. Grove’s Congressional Maps Are Just More Gerrymandering

  By Congressional redistricting, Legislative Districts, PBPC Blog posts

Statement by Marc Stier on Representative Seth Grove’s proposed congressional district map.  The congressional district map proposed by Representative Seth Grove today is an obvious effort to gerrymander those districts to benefit the Republican Party. The maps would be likely to make it difficult or impossible for Democrats to hold two to four of the seats they occupy today. At a minimum, they would give the Republicans a majority of congressional seats in a state where Democrats are a substantial majority of voters. The Pennsylvania Budget and Policy recently released a policy paper on state legislative districts that calls for fair districts that represent the people of the state. We deserve nothing less in our congressional districts. If the General Assembly passes legislation containing these lines, Governor Wolf must veto it. Continue reading

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Build Back Better Will Cut Taxes For All But the Top 1% of Pennsylvanians

  By Federal Taxes, PA Budget and Policy Center, PBPC Blog posts

Thanks to our friends at the Institute on Tax and Economic Policy, we have new data on the impact of the tax changes in the Build Back Better plan that is under consideration in the House of Representatives as I write. The first table looks at the average change in taxes for families in seven income groups that would occur as a result of all the provisions of the bill as well as due to different parts of the bill—the corporate tax changes, the income tax increase for some individuals, the state and local tax (SALT) cap adjustment, and the Child Tax Credit and Earned Income Tax Credit. As you can see, those in the bottom 20% of families, with an income under $22,400 and an average income of $12,900 will save an average of $1,070 a year. Every group above them receives a smaller average tax cut except the… Continue reading

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In Pennsylvania Schools, The Kids Who Need the Most Get the Least

  By K-12 Education in PA, PA Budget and Policy Center, PBPC Blog posts

On Friday, a trial will begin in Commonwealth Court to determine whether Pennsylvania is meeting its constitutional responsibility to give every student an adequate and equitable education.   By the standards the state of Pennsylvania sets for itself, it does not. Only 16% of school districts provide an adequate level of funding. And our analysis of the distribution of school funding relative to the share of students who are living in poverty or who are Black or Hispanic reveals inequities that are striking, immoral, and unconstitutional.  The benchmark we use to identify the level of funding in each district necessary to provide an adequate education is the 2007 costing-out study, as updated in 2020 by Penn State education professor Matthew Kelley. As required by Act 114, the costing-out study aimed to “arrive at a determination of the basic cost per pupil to provide an education that will permit a student to meet the state’s academic standards.”  Three times in the last ten years, a substantial bipartisan majority… Continue reading

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What the Infrastructure Bill Does for Pennsylvania

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

Under the formulas contained in the bill, the Infrastructure Investment and Jobs Act will bring $17.8 billion in new spending to Pennsylvania or over $1,400 for each resident of the state. (The state will be able to apply for additional funds as well that could bring the total of spending in Pennsylvania up to $50 billion.) Funds will be allocated roughly as follows: Roads and bridges. Based on the formula alone, Pennsylvania will receive $11.3 billion for federal-aid apportioned highway programs and $1.6 billion for bridge replacement and repairs. Pennsylvania can also compete for funds under the $12.5-billion Bridge Investment Program for economically significant bridges as well as for the $16 billion dedicated for major projects that will deliver substantial economic benefits to communities. These funds are critical. Our state has 3,353 bridges and more than 7,540 miles of highway in poor condition. Since 2011, commute times have increased by… Continue reading

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The “Billionaire Tax”: What It Is and Why We Need It

  By Billionaire tax, Federal Taxes, PA Budget and Policy Center, PBPC Blog posts, Taxation, Uncategorized, US

UPDATE: Senator Ron Wyden has released his “Billionaires Income Tax” legislation—read the language of the bill here:  https://www.finance.senate.gov/imo/media/doc/Billionaires%20Income%20Tax.pdf. As negotiations between President Biden and House and Senate members over the Build Back Better plan have developed in the last few weeks, a new tax proposal to fund the close to $2 billion investment in health care, child care, paid family leave, climate change, and other programs, has come to the fore: a “billionaire tax.” While Senator Wyden and others have been discussing this proposal for some time, it is a relatively unknown concept and would be a new form of federal taxation. Here we briefly explain what it is and why it is an excellent idea. The new proposal is to tax the increased wealth of the richest Americans each year. The tax would apply immediately to tradeable assets—stocks, bonds, mutual funds, and derivatives—where the value of the asset is… Continue reading

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

  By Economic Development, Economic Justice, Health Care, PA Budget and Policy Center, PBPC Blog posts, Taxation, US

Updated November 18, 2021. President Biden’s Build Back Better plan is an unprecedented and transformative plan to better the lives of all Americans—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 program—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 Pennsylvania’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 is… Continue reading

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The Prospects for Progress in DC

  By Economic Justice, PBPC Blog posts, US

News stories from Washington, D.C., are beginning to remind us of a melodrama with one cliffhanger after another—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: “will division between progressives and moderates in the Democratic party” 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, I’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 by… Continue reading

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HB 1800: A Partisan Attack on the Voters of PA

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

Today, the House State Government Committee, chaired by Representative Seth Grove, will hold a hearing on HB 1800, a bill that is a partisan attack on the right to vote in Pennsylvania. It is not actually designed to—nor will it become—law. It exists so that Representative Grove and other right-wing Republicans can continue to support Donald Trump’s Big Lie about fraud in the 2020 election while calling for changes in elections laws that would make voting more difficult. This hearing takes place at a time when Pennsylvania Republicans can’t seem to make up their minds about whether they want to engage in a bipartisan process to solve genuine problems with the administration of our elections or whether they want to placate Donald Trump and his supporters. Last week the Republican senator David Argall joined with Democratic senator Sharif Street to lead a Senate State Government Committee hearing on SB 878,… Continue reading

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STATEMENT: The Shortfall in Rental Assistance Is a Policy Choice

  By Housing, PA Budget and Policy Center, PBPC Blog posts, Statements

According to the Philadelphia Inquirer, 45,000 households have applied for rental assistance as of Friday, August 6. But the City of Philadelphia only has enough funding to provide help for half of them, and more applications are coming in every day. No one should be surprised by this devastating result. In June, a PA Budget and Policy Center policy paper showed that the General Assembly had distributed federal funds for rental assistance in a way that shorted urban counties, which are also counties that have a higher share of Black families. The Pennsylvania General Assembly distributed emergency rental funds based on county population. At first glance, that may seem reasonable. But there is enormous variation in both the share of households that rent their homes in each county and in the cost of housing in each county. So, a population-based formula for distributing emergency rental funds short-changes our state’s urban… Continue reading

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Small Businesses and Workers Need Help From the State—And Each Other

  By Economic Development, Economic Justice, PBPC Blog posts, Small / Local Business

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 doesn’t include everyone. Small businesses and many working people are still hurting. They need Pennsylvania’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. As of May 2021,… Continue reading