Month: December 2015

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Lead, Follow, or Get Out of the Way

  By Pennsylvania Budget

Originally published at Third and State Blog, December 17, 2015 Five and a half weeks ago, Governor Wolf and the Democratic and Republican leaders of the Pennsylvania House and Senate announced a bi-partisan “budget framework” designed to end the long impasse over the budget. The framework agreement, like most compromises between parties that are far apart, pleased no one. But it provided enough to satisfy everyone. Or so we thought. In the last two weeks, the House Republicans have backed away from the bi-partisan agreement. In the last two days, Speaker Turzai has been demanding that someone else — the Governor or the House Democrats—come up with the votes to enact the tax revenues that are a necessary part of the budget framework. As I write, efforts are continuing to find those votes, most of which in the House are going to come from Democrats. Speaker Turzai, it appears, won’t… Continue reading

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Why Black Lives Matter Matters

  By Racial Justice

Written for JSPAN and Originally posted on the Jewish Social Policy Action Network website as WHY BLACK LIVES MATTER MATTERS TO JSPAN Prologue In the aftermath of the controversial deaths of Black men and women at the hands of sworn officers of the law in Ferguson, Missouri; Staten Island, New York; Cleveland, Ohio; Tulsa, Oklahoma; Charleston, South Carolina; Baltimore, Maryland; Waller County, Texas; and elsewhere, a national movement called Black Lives Matter has risen in protest against injustice against African Americans. JSPAN’s Aim Black Lives Matter is a diverse, national movement, with many centers of activism across the country that have different goals and purposes. JSPAN cannot endorse every statement, idea, perspective, analysis, or policy proposal that flies under the banner of that movement. But, there is a long history of injustice against Blacks in America, a history that, contrary to the views of many, is not over. And there… Continue reading

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Why Conservatives Can Like Pennsylvania’s Personal Income Tax

  By Pennsylvania, Pennsylvania Budget, Pennsylvania State Taxes

Originally published at Third and State, December 14, 2015 Rumors of a sudden interest on the part of Republicans in raising the personal Income tax (PIT) instead of the sales tax to meet the revenue requirements of the budget framework have floated across 3rd Street to our offices at the Pennsylvania Budget and Policy Center. So I’m going to do something unusual for us—and frankly a bit uncomfortable—and give some conservative arguments for preferring the PIT over the sales tax. First, a PIT increase is for three reasons likely to place a smaller burden on businesses than a sale tax increase. For those goods and services on which the sales tax is imposed, the tax is paid on every purchase. It thus dissuades some people from making purchases. It especially dissuades those who live near a border with a state that has a lower sales tax from buying goods in… Continue reading

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PA Sales Tax can be Expanded in an Equitable Way

  By Budget, Pennsylvania, Pennsylvania Budget, Pennsylvania State Taxes, Public Policy, Taxation

Originally published in NewsWorks, December 7, 2015 Legislators have been considering raising new — and necessary — revenue by expanding the sales tax base to include more goods and services instead of increasing the sales tax rate. This would be a good way to raise revenue if it is done in ways that make the tax more equitable. Still a broader sales tax would fall more heavily on low-income families. Legislators could limit the burden on those least able to bear it by coupling the sales tax expansion with a new, refundable sales tax credit. The inequity of the sales tax The original budget framework increased the state’s sales tax rate from 7 percent to 8.25 percent (and from 8 percent to 9.25 percent in Philadelphia). This proposal was opposed by many legislators. Some opposed any tax increase. Others worried that businesses near our borders with other states would lose… Continue reading