Category: Budget

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

On The PA Budget Spending Plan Passed by the House Appropriations Committee

  By Pennsylvania Budget, Statements

HARRISBURG — Pennsylvania Budget and Policy Center director Marc Stier made the following statement after the PA House Appropriations Committee passed a budget spending plan: “The House Republicans’ budget proposal released today is sadly, but not surprisingly, a disappointment for working-class and middle-class families. “It includes no increase in the minimum wage even though every state around Pennsylvania has raised its minimum wage and found that the result has been not only higher wages but higher employment in low-wage occupations. “It provides less funding for Basic Education than Governor Wolf proposed and diverts some of that request from public schools to the EITC program that supports unaccountable private schools that often cater to the richest Pennsylvanians. “It does not fund the General Assistance program, which provides a minimal level of support to some of the most vulnerable Pennsylvanians, many of whom are waiting to receive Social Security disability payments. “In… Continue reading

No comments

  By John Neurohr, PA Budget and Policy Center, Pennsylvania Budget, Statements

With John Neurohr Originally published by KRC-PBPC. HARRISBURG—PA Budget and Policy Center director Marc Stier made the following statement in response to a press release sent out today by the Pennsylvania Republican Party criticizing a Budget Day of Action and rally/press conference in Harrisburg today in support of raising the state minimum wage: “The PA Republican Party is criticizing the Pennsylvania Budget and Policy Center and the We The People campaign for offering citizens a bus trip or a gift card to pay for their gas to make the trip to Harrisburg to advocate for a raise in the minimum wage. “Somehow in their effort to criticize us for helping Pennsylvanians who are taking a day off—in many cases from minimum wage jobs—to exercise their rights as citizens, they have forgotten that the business community that opposes raising the minimum wage has paid lobbyists who no doubt get their mileage… Continue reading

No comments

How the ‘Fair Share Tax’ will restore fairness to our tax system

  By Pennsylvania Budget, Public Policy, Published op-eds

Originally published in the Pennsylvania Capitol-Star, April 24, 2019 Pennsylvania politics remains divided. One side, composed of mostly conservatives, believes that the key to prosperity is to cut taxes for the rich, cut spending for everyone else and—although they don’t say it too loudly—keep wages low. The other side, composed of mostly liberals, believe that a prosperous Pennsylvania needs to close our public investment deficit. They point out that state spending as a share of gross state product has fallen by 12 percent compared to the years 1997-2011. That has left us with: With a Democratic governor and a Republican-controlled General Assembly, neither side is getting what they want this year. And thanks to robust revenues, the governor’s austere budget—but not as austere as Republicans want—may be settled without too much stress. But that means that partisan gridlock is making it impossible for our government to make a real choice between the two visions of Pennsylvania’s… 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 Wolf’s 2019-2020 Budget: A First Take

  By Budget, PA Budget and Policy Center, PBPC Blog posts, Pennsylvania, Pennsylvania Budget

Governor Wolf’s 2019-2020 budget proposal reflects the unique political moment in which it is presented. Pennsylvania is a state poised between two visions of government in Pennsylvania. The governor’s budget points to the future being born. But the budget is constrained by another vision that is not dying as quickly as we would like. The governor’s budget, like the budgets of his successful first administration, points the way to our future—a future in which Pennsylvanians act together to create inclusive prosperity that allows everyone, no matter their race, class, gender or where they live in the state to live a life of dignity, prosperity, and opportunity. However, until the General Assembly reflects the changing priorities of Pennsylvanians, which includes support for proposals that generate new revenues from the very rich and corporations, the state budget will not invest sufficiently in education at all levels, health care, infrastructure, and protecting our… Continue reading

No comments

Wolf’s budget plan will move Pa. forward – here’s how

  By Pennsylvania Budget, Published Op-Eds

Originally published by the PA Capital-Star on February 12, 2019 By Marc Stier Gov. Tom Wolf’s 2019-2020 budget proposal reflects the unique political moment in which it is presented. Pennsylvania is a state poised between two visions of government in Pennsylvania.The governor’s budget points to a future in which Pennsylvanians act together to create the inclusive prosperity that allows everyone to live a life of dignity, prosperity, and opportunity. But the budget is constrained by another vision, one that prioritizes cutting taxes for the rich and spending for everyone else, that is not dying as quickly as we would like. In the areas of wages, education, workplace development, and corporate tax reform, the governor’s budget takes important steps for Pennsylvanians and points the way to the future most Pennsylvanians want, one we will be able to fully realize once the General Assembly better reflects the priorities of the vast majority Pennsylvanians,… Continue reading

No comments

On the IFO Five-Year Economic and Budget Outlook

  By Pennsylvania, Pennsylvania Budget, Statements

This press release from the Pennsylvania Budget and Policy Center includes a statement from director Marc Stier regarding the November 2018 Press Release of the Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook for Pennsylvania. HARRISBURG — The Pennsylvania Budget and Policy Center released the following statement from director Marc Stier regarding today’s press release of the Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook for Pennsylvania: “The Independent Fiscal Office’s (IFO) Five-Year Economic and Budget Outlook, which was released today, confirms warnings we have been giving since July. While the state’s General Fund budget for the current year was balanced, it relied heavily on one-shot revenues and borrowing on the Tobacco Settlement. The previous two state budgets did the same thing. And the bills for paying for necessary state expenditures with one-shot revenues and borrowing are coming due. “The IFO predicts that the budget deficit for fiscal… Continue reading

No comments

On the General Assembly Passage of the General Appropriations Bill

  By Budget, PA Budget and Policy Center, Pennsylvania, Pennsylvania Budget, Statements

This press statement, released on June 22, 2018, reflects PBPC director Marc Stier’s statement following the General Assembly’s passage of a budget spending plan that will be sent to Governor Wolf. HARRISBURG — Pennsylvania Budget and Policy Center director Marc Stier made the following statement after the General Assembly passed a budget spending plan that will now be sent to Governor Wolf: “When Governor Wolf released his budget proposal in March, we noted that his plan had the right priorities but, given the political realities he faced, understandably did not put forward initiatives bold enough to close the deep public investment deficit in Pennsylvania. Pennsylvanians should feel the same about the general appropriations bill that passed through the General Assembly today. “The new budget provides welcome new investments in pre-K and K-12 education, special education, higher education, workforce training, child care, treatment for substance abuse disorder, and intellectual disabilities. These… 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