A Fair Share Tax for Pennsylvania–Updated for 2023

By Mafc Stier and Diana Polson Pennsylvania has long suffered from a tax system that is both highly regressive, taking a larger share of income from low-income and moderate-income families than high-income families, and that does not raise sufficient revenue to meet the needs of Pennsylvanians. In the recent past, inadequate revenues have led to a structural budget deficit and will continue to do so in the near future. In turn, this has led to what we call a public investment deficit: a lack of funding for critical needs that undermines both opportunity and economic growth. Just one example of the public investment deficit in Pennsylvania is the recent decision by Commonwealth Court President Judge Jubelirer saying the state fails to meet its constitutional obligation to provide a “thorough and efficient” education to all K-12 school children. This paper puts forward the Fair Share Tax proposal, a major step toward… Continue reading

It’s Time to Reinstate the Philadelphia Wealth Tax

Wealth inequality in America, in Pennsylvania, and in our region has been growing strikingly since the late 1970s. And wealth inequality continues to increase during the pandemic. The dramatic rise in wealth inequality threatens economic growth, reduces the tax revenues needed to fund vital public institutions, and undermines our democracy. To counter wealth inequality and to raise the revenue needed to fund programs that support the well-being of working people in our city, we call for the reinstitution of a wealth tax of 4 mill or .4% of the value of intangible wealth in Philadelphia. We estimate that this tax would raise more than $200 million per year in revenues for the city, which would provide the funds necessary to create and / or expand programs that would enable us to break down the barriers of class, race, and gender that stand in the way of opportunity for so many… Continue reading

The Fair Share Tax Proposal is Uniform Under the PA Constitution

By Richard Feder, J.D. For a number of years, the Pennsylvania Budget and Policy Center has been proposing a replacement for Pennsylvania’s Personal Income Tax, which we call the Fair Share Tax. This plan is one of a number of ideas that include corporate tax reform and a natural gas severance tax and are designed to reverse the horrible inequities in our tax system that result in families with low and middle incomes paying taxes to state and local governments at about twice the rate of families in the top 1% of incomes. One of the questions raised about the Fair Share Tax is whether it meets the uniformity clause of the Pennsylvania Constitution. PBPC asked a noted Philadelphia lawyer with expertise in tax matters to do a thorough review of case law and other taxes in the state to answer that question. This is his answer in the form… Continue reading

Economic, Racial, and Ethnic Inequality in Pennsylvania School Funding

  It is well known that Pennsylvania’s K-12 schools are inadequately and inequitably funded. But the extent of the problem is not fully understood. This paper uses new data and methods to demonstrate just how unfair—and morally unsustainable—the funding of elementary and secondary education is in the Commonwealth. Click here to print or read the report full-screen.   Continue reading

Speaker Cutler’s Attack on the Principles of the Founding Fathers

The State Government Committee of the Pennsylvania House of Representatives plans to take up two proposed constitutional amendments proposed by Speaker Cutler that are a direct and serious attack on the Pennsylvania Constitution and the entire framework of government designed by the founders of our country. Indeed, it is hard to think of any constitutional proposal that so directly and radically breaks with the wisdom of those who created the Constitution of the United States and whose work inspired the constitutions of our fifty states. While the constitution of every state is somewhat unique, every one of them enshrines the principle of the separation of power and the checks and balances in the institutions of government they create. Speaker Cutler’s amendments directly attack those principles. The separation of powers doctrine requires that each branch of government—in PA the governor, the General Assembly, and the courts—be delegated one of the three… Continue reading

What to Expect When You’re Expecting New Districts

Sometime in the next ninety days—and perhaps much sooner—we expect to see the Legislative Redistricting Commission (LRC) release its first draft of a plan for the redistricting of Pennsylvania’s state House and Senate districts. This policy brief aims to give Pennsylvania’s citizens, community leaders, media, and advocates some idea of what to expect from the forthcoming LRC plan. To state our conclusion as succinctly as possible: we expect the LRC to give us fair, nonpartisan legislative districts for the first time in at least two decades. Chairman Mark Nordenberg is leading the effort to undo the effects of twenty years of Republican gerrymandering and create districts that recognize demographic changes over the last decade. As a result, fairly drawn districts lines will look very different than current ones. Click here to print or read full-screen.  Continue reading

How the General Assembly Can Try to Steal the Election, Why It Would Be Wrong to Do So, and How to Stop It

Originally published by KRC-PBPC here. There has been loose talk among right-wing activists calling on the General Assembly to intervene in the choice of presidential electors and thus overriding the vote of the people. Here is what the PA General Assembly might try to do and why under the law and Constitutions of Pennsylvania and the United States, they should not be allowed to do it. Click here to print or read the report full-screen. Continue reading