Category: Policy reports

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Why Pennsylvania Needs a State Earned Income Tax Credit (EITC)

  By Economic Justice, Pennsylvania, Pennsylvania State Taxes, Policy reports

By Diana Polson and Marc Stier Originally published by KRC-PBPC here. If one thing has become clear during the COVID-19 pandemic, it is that workers who do essential things like providing care for the sick, stocking shelves at grocery stores, and cleaning facilities to keep our buildings clean and safe are undervalued in our society. Despite their hard work, many Pennsylvanians earn such low wages that it remains difficult to pay for rent, food, childcare, transportation, and other necessities. We must raise wages and strengthen worker protections for low- and middle-income workers. In addition, there is another easy step Pennsylvania can take to support low-wage workers. That is a state Earned Income Tax Credit (EITC), which has been effective at reducing poverty in more than half the states across the country.  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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Some Steps Forward Amid Major Disappointments: Pennsylvania’s Enacted Budget 2019-2020

  By Policy reports

Originally published by KRC-PBPC here. By Diana Polson and Marc Stier Pennsylvania enacted a $33.997 billion budget on June 28, 2019. And for the second year in a row, the budget was in place by the June deadline. This year, unlike his first few years in office, Governor Wolf did not seek major spending initiatives and ask for new broad-based revenues. And that made it easier to reach agreement with the Republican-controlled General Assembly. Indeed, it was the members of his own Democratic Party who expressed the most dissatisfaction with the final budget, largely because it did not include the increase in the minimum wage he requested and eliminated the General Assistance program he proposed to fund after it was restored by the Courts last year. We share the disappointment about these two parts of the budget and also regret that the state’s current politics doesn’t allow our government to… Continue reading

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Will There Be a Child Care Benefit Cliff if We Raise the Minimum Wage?

  By Childcare, Minimum Wage, PA Budget and Policy Center, Policy reports

Published by KRC-PBPC here. Introduction Raising the minimum wage is one of the most important steps that Pennsylvania can take to fix a political economy that has been tilted against working people for decades. Two bills before the General Assembly, HB1215 and SB12, propose increasing the minimum wage to $12 per hour on July 1, 2019, and increasing the wage in 50-cent increments until it reaches $15 per hour in 2025. Raising the minimum wage to $15 would ultimately lift wages for two million Pennsylvanians, not only those who make the minimum wage now or who would after an increase, but also many whose wages would be pushed higher when the floor on wages is raised. Raising the minimum wage would also help local economies and the economy of the state as a whole by giving working people the capacity to buy more goods and services. Every state around Pennsylvania… Continue reading

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A Fair Share Tax Plan for Pennsylvania–2019 Update

  By Diana Polson, PA Budget and Policy Center, Pennsylvania State Taxes, Policy reports

By Marc Stier and Diana Polson Originally publish by KRC-PBPC This paper puts forward the Fair Share Tax plan, a major step toward fixing Pennsylvania’s broken tax system and raising the revenues we need to invest in the public goods that are critical to creating thriving communities and individual opportunity in our state: education, infrastructure, protection for our air and water, and human services. The calculations included in this plan are an update to similar proposal put forward by the PA Budget and Policy Center in 2017. The proposal that would raise $2.2 billion annually, while cutting taxes or leaving them level for 82% of Pennsylvanians. Click here to read or download the full proposal.  See how Pennsylvanians in each state House and Senate district would fare under the Fair Share Tax Plan here. Continue reading

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Devastation, Death, and Deficits:The Impact of ACA Repeal on Pennsylvania

  By ACA, Health Care, PA Budget and Policy Center, Policy reports

The Affordable Care Act of 2010 is one of the most important pieces of domestic legislation enacted since the 1960s. It has had a dramatic impact in reshaping the provision of health care in the United States at a time when health care amounts to 18% of the United States economy. This report aims to quantify the benefits of the ACA to Pennsylvanians, in part by showing just how costly repeal of it will be. Click here to print or read full screen.   Continue reading

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The Fair Share Tax to Support Public Investment in Pennsylvania

  By Fair Share Tax, PA Budget and Policy Center, Policy reports, Taxation

This paper puts forward a plan, which we call the Fair Share Tax, that would take a major step toward fixing Pennsylvania’s broken tax system and raise the revenues we need to invest in the public goods that are critical to creating thriving communities and individual opportunity in our state: education, infrastructure, protection for our air and water, and human services. Click here to print or read full screen. Continue reading