Category: Penn Policy Center

Originally published at Pennsylvania Policy Center on June 14, 2024. In our first post in this series, we argued that if the Pennsylvania General Assembly chooses to cut taxes in the budget that begins on July 1st, it should limit the cut to less than $1 billion per year and focus the benefits of the cut on low- and moderate-income Pennsylvanians. There is one plan that meets both of these criteria perfectly: a state earned income tax credit. The federal earned income tax credit (EITC) is a program that puts more money into the pockets of low- and middle-income families by giving them a credit against the taxes they pay. It was a program created by the Nixon administration and expanded under subsequent Republican presidents. It has traditionally been supported by Republicans who believe, correctly, that it encourages and makes it possible for people with low incomes to enter and… Continue reading

Originally published at Pennsylvania Policy Center on June 14, 2024. In response to a Senate vote in favor of a small reduction in the personal income tax rate and the gross receipts tax on electricity, we pointed out that this is not the right time to be reducing taxes in Pennsylvania. At the moment, the state has a substantial budget surplus of more than $13 billion—but we need that surplus for two purposes. First, we are currently using it to pay the state’s operating expenses and will continue to do so because annual expenditures exceed annual revenues by more than $3 billion. Second, the state has serious needs that require additional investment. To start with, we will eventually need an additional $6–$7 billion per year to meet the constitutional and moral responsibility to adequately and equitably fund K–12 education. And then there are critical needs in both pre-K and higher… Continue reading

Originally published at Pennsylvania Policy Center on May 7, 2024. Yesterday, Senate Majority Leader Joe Pittman (R-41) introduced legislation to cut Pennsylvania’s personal income tax rate from the current 3.07% to 2.8%. This legislation is both deeply cynical and totally revealing of the unfortunate priorities of Republicans in Harrisburg. For it shows us that, once again, they have chosen to cut taxes for the rich rather than fund education fully and fairly. Ever since a majority of the Basic Education Funding Commission (BEFC), with the support of Governor Shapiro, embraced a seven-year plan to meet the constitutional obligation to fund our schools, the Republicans have had only one response: “We can’t afford it.” They did not appeal the Commonwealth Court decision, which declares that the current system of funding schools is unconstitutional. They did not propose an alternative to the BEFC plan. They just said, “We can’t afford it,” even… Continue reading

Originally published at Pennsylvania Policy Center on April 1, 2024. By Marc Stier, Executive Director, Pennsylvania Policy Center I took my first regular paid job as a hotel bellhop in 1966 when I was eleven. It was hard work—in many ways harder than anything I do today. People came to stay for a week or three and that meant a summer of schlepping heavy bags, sometimes up two flights of stairs. The tips were sometimes good and sometimes not. The minimum wage in 1968 was $1.60. But when I got my first paycheck, I was astounded to see that my pay rate was only eighty cents per hour. This made no sense to me, so I went to speak to my boss. I said, “Mom, why am I only getting paid half of the minimum wage?” She explained the tipped minimum wage to me that day and ever since I’ve… Continue reading

Originally published at Pennsylvania Policy Center on April 1, 2024.  By Marc Stier, Executive Director, Pennsylvania Budget and Policy Center As I documented in a previous blog post, there is no question that the minimum wage is worth less than what it was at an earlier time in our history, even though we are a far more prosperous country today than in the past. And yet large numbers of people—more than 21% of all workers in Pennsylvania—earn less than $15 per hour or just above it. And that’s why we need a minimum wage. It is one of the critical policies that, like the right to form unions, the social safety net, and a tax system that asks the rich to pay at a higher rate than the poor, ensures we have an economy that works for all of us, not just the wealthy owners of huge corporations. We show… Continue reading

Originally published at Pennsylvania Policy Center on March 29, 2024. VIEW IN A PDF READER, PRINT, OR DOWNLOAD. Click to access Minimum-Wage-and-Economic-Justice.pdf Continue reading

Originally published at Pennsylvania Policy Center on March 22, 2024. In Pennsylvania, OSHA (the Occupational Safety and Health Administration) regulations apply to most private sector employers and employees. However, public sector employees, including those working for “Section (3)(5) of the Occupational Safety and Health Act of 1970 specifically excludes Federal OSHA’s authority over employees of State and local government. The Act provides for States to assume responsibility for occupational safety and health programs under the state’s own plan, which must be approved by the U.S. Department of Labor.” These protections implement lifesaving health and safety standards in the workplace as well as avenues to report violations and receive assistance. Amongst other protections, OSHA standards require private employers to: provide fall protection, ensure the safety of workers who are in confined spaces, provide protection against infectious diseases, and prevent exposure to harmful substances like asbestos or lead. Without regulation, all public… Continue reading