Economic Development

Cutting taxes won't spur economic growth

Posted by Anonymous on October 29, 2014 10:19 am
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Flying in the face of the often heard rhetoric that tax cuts are the cure for all ills, a new study finds that cuts to business taxes are at best ineffective, and at worst harmful to state economic growth and development. A better strategy for growth is to increase investment in education and infrastructure.

Pennsylvania Needs to Stop Shortchanging Its Future and Invest Smartly in Higher Education

Posted by Stephen Herzenberg on October 27, 2014 1:29 pm
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While there's been a lot of focus recently on K-12 school funding cuts in Pennsylvania, Pennsylvania higher education has experienced even larger state funding cuts in percentage terms. Pennsylvania's starting point for investing in higher education, moreover, was already near the bottom.

The list of poor rankings that reflect Pennsylvania's underinvestment in higher education is somewhat mind blowing.

For example, Pennsylvania is 48th for investment in higher education per capita.

New Jersey’s 76ers Deal a Slam Dunk? Maybe for the Sixers, Not so clear for New Jersey or Pennsylvania

The Philadelphia 76ers have been scouting locations for a new training facility, and New Jersey has lobbied considerably to have the team relocate across the river to the Garden State. To sweeten the deal, the New Jersey Economic Development Authority (EDA) will cover the total cost of the new facility. The state will reimburse the team through an $8.2 million annual tax credit.

Pittsburgh: One of America's New Laboratories of Democracy

My colleague Diana Polson brought my attention to Harold Meyerson's new story in The American Prospect highlighting Pittsburgh as a city with exciting young progressive political leadership and labor-community alliances (e.g., Pittsburgh United). Pittsburgh deserves the credit as do councilwoman Natalia Rudiak, Mayor Peduto, and SEIU 32BJ, which received shout outs in the story.

Third and State This Week: Upward Mobility, Pittsburgh and Detroit, Revenue Wrap, and Diversion Politics

This week at Third and State, we blogged about a new study showing the American Dream of upward mobility is more alive in Pennsylvania than in many parts of the country. We also wrote about 2012-13 revenue collections and a well-oiled effort to distract middle-class families from the real cause of their economic struggle. Plus, a guest post on how Pittsburgh avoided Detroit's fate.

IN CASE YOU MISSED IT:

  • On wages and mobility, Stephen Herzenberg blogged about a new study by Harvard and Berkeley economists showing that Pennsylvania enjoys substantially more upward mobility than many other parts of the United States.
  • On state budget and taxes, Michael Wood explained some of the key takeaways from General Fund revenue collections in the 2012-13 fiscal year.
  • On nutrition assistance, Stephen Herzenberg responded to the latest salvo in an organized right-wing assault on nutrition assistance and other safety net spending. Steve wrote that the real kitchen table issue facing most Americans is rising income inequality.
  • And on the Marcellus Shale and the economy, guest blogger Tim Stuhldreher shared his thoughts on why Pittsburgh has fared much better than Detroit after taking huge economic hits in the 1980s. Hint: it is not all about shale drilling.

IN OTHER NEWS

Pennsylvania, Land of Opportunity

We're not always the "good news bears," but today we're thrilled to give greater visibility to a landmark new study that shows the American Dream of upward mobility is more alive in Pennsylvania than in most parts of the country.

Third and State This Week: Costly Pensions Plan, a Tax Cut that Should Be Delayed, Pittsburgh’s Economy & More

This week at Third and State, we blogged about the problems with the Governor’s pension plan, how critical the expansion of Medicaid health coverage is for low-income working families in Pennsylvania, why the state should delay a planned corporate tax cut, and a new report on how Pittsburgh’s economy is doing better than other neighboring rust-belt cities.

IN CASE YOU MISSED IT:

  • On pensions, Stephen Herzenberg shared his Philadelphia Inquirer op-ed explaining that the Governor’s pension proposal will increase the state's pension debt and cost taxpayers more.
  • On health care, Jamar Thrasher blogged that if Pennsylvania rejects federal dollars to expand Medicaid, many of the state’s low-income working families will have nowhere to turn for health coverage.
  • With state budget action likely to pick up after Memorial Day, Chris Lilienthal blogged that policymakers should delay the planned phaseout of a corporate tax in order to preserve critical investments that make Pennsylvania a good place to live and do business.
  • On the economy, Jamar Thrasher wrote about a new study finding Pittsburgh's economy has fared better than neighboring rust-belt cities Buffalo, Cleveland, and Detroit.

IN OTHER NEWS:

MARK YOUR CALENDAR:

  • Join the Pennsylvania Budget and Policy Center on Tuesday, May 28 from 4 to 5 p.m. for a webinar on education funding in Pennsylvania. Learn more and register to participate.
  • Join the Keystone Research Center and Pennsylvania Budget and Policy Center on Thursday, June 13 for our Annual Awards Dinner at the Hilton Harrisburg. Learn more and purchase tickets.

Pittsburgh Fares Better Than Other Rust-Belt Cities Thanks to Education

From 1970 through 2006, rust-belt cities Buffalo, Cleveland, Detroit, and Pittsburgh have all seen a considerable decline in neighborhood population, but Pittsburgh has fared better than the rest.

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