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

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

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

Originally published by the PA Capital-Star on 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: K-12 schools that remain among the most unequal in the country, leaving too many of our children to receive an inadequate education; state spending on higher education that is half of what it was in 1983-84, leaving us fourth from the bottom among all states in per capita spending and 40th of 50 states in the percentage of adults with more than… Continue reading

Pizza and the Minimum Wage

Originally posted at Penn-Live on April 09, 2019 Spend a little time talking to Republican (and some Democratic) legislators about raising the minimum wage, and they will eventually tell you about their friend who owns a pizza shop and opposes an increase. This is the story the pizza shop owners appear to tell our legislators: If the minimum wage goes up by 2/3rds from $7.25 to $12.00 an hour, I’d have to raise the price of my 12-inch pizza by 2/3rds from $9.49 to $15.75. No one will buy a pizza for $15.74 and I’ll go out of business.” We decided to test this claim in two ways. Every state surrounding Pennsylvania has raised its minimum wage, and two have raised it substantially. The minimum wage in New York is $11.10, 53% more than in Pennsylvania. In Maryland it is $10.10, 39% more. If the pizza shop owners who talk… Continue reading

A Fair Share Tax Plan for Pennsylvania–2019 Update

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

This Isn’t the Redistricting Reform We Need

HARRISBURG—Pennsylvania Budget and Policy Center director Marc Stier made the following statement regarding the resurfacing of SB22, a bill intended to change the way legislative redistricting is done in Pennsylvania: Senator Mike Folmer announced this week that he will be resurrecting last year’s failed SB22, a bill to change the way district lines are drawn in Pennsylvania. Senator Folmer is preparing to bring the bill back up for a vote in the State Government Committee as early as tomorrow. While eliminating gerrymandering is critically important, Senator Folmer is hoping to catch Pennsylvanians unawares as he attempts to bring a failed bill to a committee vote without holding debate and hearings and without gathering input from the communities that will be most impacted by SB22. Governor Wolf established a redistricting commission earlier this year and Senator Folmer should not attempt to rush SB22 through committee without giving Pennsylvanians a chance to… Continue reading