Category: Diana Polson

No comments

Why Pennsylvanians Should Reject Vouchers.

  By Diana Polson, Susan Spicka, Vouchers

Why Pennsylvania Should Reject Vouchers Susan Spicka, Education Voters PA Diana Polson, Keystone Research Center Marc Stier, Pennsylvania Policy Center Here we quickly summarize three major reasons why the General Assembly should not adopt a new voucher program. Voucher-funded schools do not offer educational choice for families and students. They use public dollars to support schools that engage in discrimination against many families and students. Voucher programs do not create educational “choice” for many families and students. Instead, voucher programs create the illusion of “choice” because private and religious voucher schools can—and do—engage in discrimination and refuse to enroll students, even if their family is eligible for a voucher. We have seen this in the tax-credit voucher programs already in place in Pennsylvania. In 2022–2023, the Pennsylvania legislature authorized the diversion of $340 million tax dollars out of the state treasury and into private and religious voucher schools through the Educational… Continue reading

No comments

A Fair Share Tax for Pennsylvania–Updated for 2023

  By Diana Polson, Pennsylvania Budget, Pennsylvania State Taxes, Policy reports

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

No comments

Calm Before the Storm: An Analysis of Governor Wolf’s Proposed Budget for 2020-21

  By Budget analysis, Diana Polson, PA Budget and Policy Center, Pennsylvania Budget, Stephen Herzenberg

Originally published by KRC-PBPC here, By Diana Polson, Marc Stier, and Stephen Herzenberg We were in the last two weeks of work on this analysis of the governor’s proposed budget for the fiscal year beginning on July 1, 2020, when the political and economic world in which we’d been living tilted on its axis. The coronavirus that is responsible for the COVID-19 pandemic was creating havoc in China, both to the health of the population and to the economy of the country. It is now clear that the United States is heading into a recession. We should expect that our economy, and indeed the whole world, will suffer for some time. A recession will have a severe impact on the budget of Pennsylvania with regard to both revenues and expenditure. Revenues will certainly decline. And expenditures for human services—especially for Medical Assistance (Pennsylvania’s Medicaid program), Unemployment Compensation, SNAP (formerly called… Continue reading

No comments

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

No comments

Effects of a Minimum Wage Increase on Social Safety Net

  By Diana Polson

Published at KRC-PBPC here. By Marc Stier and Diana Polson INCREASED INCOME FROM RAISING MINIMUM WAGE IS GREATER, AND IN MOST CASES, FAR GREATER THAN THE LOSS IN BENEFITS AND NEW TAXES PAID HARRISBURG—As Pennsylvania seriously considers raising the minimum wage for the first time in over a decade (and as the U.S. House prepares to vote on a bill to increase the minimum wage federally), concerns have been raised that workers receiving a higher wage also will face a “benefits cliff.” A benefits cliff occurs when individuals get a wage increase but the social benefits they lose and the taxes they pay increase more than their additional earnings, resulting in an overall reduction in a family’s standard of living. The Pennsylvania Budget and Policy Center today released two policy briefs examining the effects of a minimum wage increase to $15/hr in Pennsylvania. One brief examines a wage increase when… Continue reading

No comments

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

No comments

Analysis of Governor Wolf’s Proposed 2019-20 State Budget

  By Budget analysis, Diana Polson, PA Budget and Policy Center, Pennsylvania Budget, Public Policy, Stephen Herzenberg

INTRODUCTION Some important things have changed in Pennsylvania politics as a result of the 2018 election. But the basic political dynamic that constrains our budget politics remains. We have a Democratic governor and a Republican-controlled General Assembly. And more importantly, we face an ideological division that partly maps onto the partisan one. On one side are those who believe that the only path to prosperity for our state is to cut taxes for the rich and for businesses, cut spending, and hold wages down. On the other side—where the Pennsylvania Budget and Policy Center stands—are those who believe that prosperity for everyone requires us to raise wages and expand the safety net that protects those who need our help, invest in people through new educational initiatives at all levels and in workforce training, and invest in building our public infrastructure and protecting our environment. The priorities for spending found in… Continue reading

No comments

Governor’s 2018-19 Budget Overview

  By Budget analysis, Diana Polson, PA Budget and Policy Center, Pennsylvania, Pennsylvania Budget, Stephen Herzenberg

With Diana Polson and Stephen Herzenberg In 2018-19, Governor Wolf has presented another austere budget that, within the political limits of Harrisburg, makes progress on issues critical to Pennsylvanians. But because of those political limits- and through no fault of the governor- it does not make fast enough progress. This document presents an overview of the Governor’s proposed 2018-19 budget, and how we believe it continues to move Pennsylvania forward despite difficult circumstances. Continue reading