Category: Penn Policy Center

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Statement on Child Tax Credit Expansion

  By Child Tax Credit, Penn Policy Center, Statement, US

STATEMENT on Child Tax Credit Expansion- Marc Stier. Executive Director, Pennsylvania Policy Center The House Ways and Means Committee today voted in favor of bi-partisan tax legislation that includes an expansion of the child tax credit along with the restoration of some expired business tax credits. The legislation is the product of negotiations between the Chair of the House Ways and Means Committee, Jason Smith (R-MO) and the Chair of the Senate Finance Committee, Ron Wyden (D-OR). This legislation would benefit 16 million children in low-income families, or 1 in 5 of children under 17, including 506,000 children in Pennsylvania. It would especially help Black, Latino, and Asian children, whose parents are overrepresented in low-paid jobs due to structural barriers to opportunity. In the first year, the expansion of the child tax credit would lift 400,000 children nationwide- and roughly 16,000 kids in Pennsylvania- out of poverty. Additionally, another 3… Continue reading

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Statement in response to the Basic Education Funding Commission Report

  By Education, K-12 Education in PA, Penn Policy Center, Statement

The adoption of the Basic Education Funding Commission Report yesterday is a major step forward in meeting our constitutional and moral responsibility to fund education fully and fairly in Pennsylvania. The first step in this process was a Court decision by a Republican judge holding that our current system of funding education is not constitutional. Yesterday, the state took a second step. We are grateful that a majority of the Commission, including the Governor and the members of the General Assembly, provided a detailed and specific plan to meet the constitutional and moral requirement of adequately and equitably funding our schools—a plan we believe is fair. The plan comes very close to meeting our expectations. It sets a plausible and defensible standard for evaluating the adequacy of funding in every school district. By that standard, we need $5.4 billion per year in new funding to close the adequacy gap in a… Continue reading

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ITEP Report: Tax Fairness in Pennsylvania

  By Pennsylvania State Taxes, Presentation

Every few years, the Institute on Taxation and Economic Policy releases its survey of taxes in the states, “Who Pays?” Click here to read the seventh edition, released on January 9, 2024.  A summary of the data for Pennsylvania is found below. This year’s report continues to tell the same story that we have seen for decades. Taxes in Pennsylvania are among the most upside-down in the entire country. The report shows that The lowest-income 20 percent of taxpayers face a state and local tax rate that is 152 percent higher than the top 1 percent of households. The average effective state and local tax rate is 15.1 percent for the lowest-income 20 percent of individuals and families, 11.4 percent for the middle 20 percent, and 6 percent for the top 1 percent. Pennsylvania has the highest tax rate on low-income families in the entire country at 15.1%. Pennsylvania has… Continue reading

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Press Release: Taxes in Pennsylvania Are Upside-Down

  By Penn Policy Center, Pennsylvania State Taxes, Statement, Taxation

FOR IMMEDIATE RELEASE: January 10, 2024  Contact: Kirstin Snow at Penn Policy Center snow@pennpolicy.org or Jon Whiten at ITEP jon@itep.org. RELEASE: Pennsylvania’s Tax System Exacerbates Inequality, In-Depth National Study Finds State Has the 4th-most Regressive Tax Code in the Nation Harrisburg, PA — Pennsylvania’s tax system is upside-down, with the wealthy paying a far lower share of their income to taxes than low- and middle-income families. That’s according to the latest edition of the Institute on Taxation and Economic Policy’s Who Pays?, the only distributional analysis of tax systems in all 50 states and the District of Columbia. In sharing the data, Marc Stier said, “The new report from our national partner, the Institute on Taxation and Economic Policy, shows that Pennsylvania has one of the most upside-down state and local tax systems in the country. We should be ashamed to live in a state with the highest rate of… Continue reading

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Survey Results: Levels of Support for Higher Taxes on Profitable Corporations and Wealthy Individuals by PA House District

  By Pennsylvania State Taxes, Poll, Taxation

In November and December of 2022, Data for Progress conducted a national survey of registered voters to gauge voter support towards state action to hold profitable corporations and the wealthy accountable to pay their fair share of taxes. The national survey was then used to estimate opinion at the state level for Pennsylvania using a machine learning model trained on nationally representative survey responses linked to a commercial voter file. In addition, estimates were made of public support in each state House and Senate district. Click here for state-wide results. Perhaps surprisingly, the differences between PA House districts held by Democratic and Republican legislators are not all that great. Registered voters in both Democratic and Republican districts overwhelmingly support tax increases on profitable corporations and wealthy individuals. The highest support percentage in Democratic districts was 92%, the lowest was 81%. The average support percentage in Democratic districts was 86%. The… Continue reading

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We Can’t Fix Education By Shuffling The Deck

  By Blog post, Education, K-12 Education in PA

In February 2023, Judge Renée Cohn Jubelirer called for a new funding system in Pennsylvania to fulfill the state’s obligation to provide a thorough and efficient education for its children. But, opponents of increased education funding cite the state’s high per-student spending, compared to other states, as a reason not to increase our total spending on K-12 schools. The comparison to other states’ spending per student is misleading in multiple ways. To begin with, it does not consider variations in the cost of living and education expenses. Pennsylvania’s education spending per student is below the average of the 11 New England and other Mid-Atlantic states that are closest to Pennsylvania with regard to the costs of education. In addition, overall levels of funding skirt the core issue in Judge Jubelirer’s decision—that in Pennsylvania, school funding is highly inequitable from one school district to another. The evidence presented to Judge Jubelirer,… Continue reading

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Is Harrisburg Ready for Change?

  By Blog post, Elections and Voting, Penn Policy Center, Taxation

Is new leadership showing a new approach to legislating? Marc Stier, Executive Director Since Democrats finally took control in March, we have seen the House of Representatives pass a raft of legislation and budget proposals that not only reflect the priorities of Democrats and progressives but also has broad support in the state. Little of this legislation has be taken up, however, let alone passed, by the Senate. Three months after the start of the fiscal year, the code bills necessary to complete the budget have not been enacted. Last week, Democrats took a new approach, one that not only has the potential to finish the budget but could radically change the legislative process in Harrisburg for the better. In three key areas, House Democrats, led by Speaker Joanna McClinton and Majority Leader Matt Bradford, put forward code bills and legislation that are bipartisan in spirit and detail. They advance… Continue reading

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What Would an Equitable Voucher System Look Like?

  By Blog post, Education, K-12 Education in PA, Penn Policy Center, Vouchers

Pennsylvania’s Republican legislators support a voucher program they say is meant to help a small number of students who attend schools they claim are failing. (They don’t mention that those schools are also severely underfunded.) However, these legislators and their supporters, including billionaires Betsy DeVos and Jeffrey Yass, have made no secret that their ultimate goal is to replace our public schools with a system of private schools financed by vouchers. It is doubtful that such a plan could meet the requirements of the Pennsylvania Constitution. When the education clause was added to the Constitution of the Commonwealth of Pennsylvania in 1873, it specifically required funding of “public schools.” And, changing the words to “public education” in the constitutional revision of 1967 does not alter the import of the phrase. Could a voucher plan be designed to meet the two goals for public education held by the framers of the… Continue reading

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Senate Again Refuses to Fund State’s Most Dire School Districts

  By Blog post, Education, K-12 Education in PA, Penn Policy Center

Senate Again Refuses to Fund State’s Most Dire School Districts – Marc Stier, Executive Director, Penn Policy Center “The Republican-controlled Pennsylvania Senate came back today for a rare August session. It took a step toward completing the budget by passing a code bill on several uncontroversial issues. However Republican senators have failed to pass a code bill with language that would allow the expenditure of $100 million for Level Up for the state’s 100 least-well-funded schools. Senate Republicans keep talking about helping kids in so-called “failing schools.” The only schools that don’t provide a good education are those that are underfunded and that, today, they failed again to fund.” Continue reading

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Economic Opportunity, the Dignity of Work, and the Minimum Wage

  By Blog post, Minimum Wage, Penn Policy Center

Raising the minimum wage has always been about the dignity, as well as the wages, of working people. We who place so much value on our ability to provide for ourselves and our families should recognize the importance of ensuring a dignified living wage for all full-time workers.  Yet during the debate on the minimum wage in the Pennsylvania House in May, Republicans in the Pennsylvania House of Representatives showed us what they think of low-wage workers. They proposed amendments to the minimum wage bill that are classic examples of blaming the victim. One would exclude workers without a high school degree, or the equivalent, from the protection of the minimum wage. Another would require workers to pass a literacy test to earn the minimum wage.   These representatives—many of whom come from districts in which ten percent or more of the population do not have a high school degree and… Continue reading