Federal Budget and Taxes

Getting Cheeky with Tax Data, Part 2

This is the second of a three-part series running this week on Third and State.

As we noted in Part 1 yesterday, getting cheeky with tax data is not a phenomenon limited to New York City and Washington D.C. Just a few steps south of our worldwide headquarters here at Third and State you can find Pennsylvania's own Commonwealth Foundation working hard not to be outdone by their national peers.

Getting Cheeky With Tax Data, Part 1

This is the first of a three-part series running this week on Third and State.

Last week, the editorial page of The Wall Street Journal got caught being, shall we say, less than truthful in its presentation of data on taxes.

Zombie Ideas: Only The Rich Pay Taxes

A big part of our work is fighting zombie ideas — claims that don't actually have empirical support but just keep getting repeated over and over again.  On Friday and again this morning, Paul Krugman let loose his wicked cricket bat on one we hear repeated ad nauseam by Harrisburg pundits.

Third and State This Week: Closing Loopholes, a Flawed School Vouchers Plan and More

This week, we blogged about closing tax loopholes on Tax Day, a deeply flawed school vouchers plan in the state Senate, Governor Corbett's claims about property taxes in Texas, and much more. 

IN CASE YOU MISSED IT:

  • On education, Steve Herzenberg wrote that despite amendments made to the Senate school voucher bill, it remains a deeply flawed and expensive new program, with little to no accountability.
  • On state budget and taxes, Sharon Ward shared her Tax Day op-ed in the Pittsburgh Post-Gazette, where she suggests that instead of grumbling about taxes this year, we start the work of closing tax loopholes that disproportionately benefit the well-connected few. Meanwhile, Chris Lilienthal passed on Tax Day resources from the Center on Budget and Policy Priorities and Demos' Taxes Matter Project to provide a fresh perspective on how we think about taxes. And Michael Wood posted a video clip from a Monday press conference, hosted by Common Cause Pennsylvania, where he and good government advocates called on lawmakers to close tax loopholes before cutting schools, colleges and services for vulnerable Pennsylvanians.
  • Finally, on the Marcellus Shale, Michael Wood sets the record straight on what taxes Texas drillers do and don't pay, in response to recent comments by Governor Corbett.

More blog posts next week. Keep us bookmarked and join the conversation!

'Close the Tax Loopholes' Day

Many Pennsylvanians will grumble today as they race to file their tax returns on time. Others will be laughing all the way to the bank.

Who's laughing, you ask? Those well-connected few corporations and top earners who benefit from federal and state tax loopholes that drain revenue and shift the cost of services onto the rest of us.

In an op-ed in Friday's Pittsburgh Post-Gazette, I shared the example of General Electric, the nation's largest corporation. As such, you would expect G.E. to have a pretty sizeable tax bill, right? Think again.

On Tax Day, a Fresh Perspective on Taxes

With the deadline for filing state and federal tax returns upon us, the Pennsylvania Budget and Policy Center has pulled together resources from the Center on Budget and Policy Priorities and Demos' Taxes Matter Project to provide a fresh perspective on how we think about taxes.

In Case You Missed It: Third and State Blog for Week of March 21

This week on Third and State, we blogged about Marcellus Shale trickle down economics, the Affordable Care Act's first birthday, unions and inequality, and much more!

In case you missed it:

  • On the Marcellus Shale, Mike Wood notes that trickle down economics is not helping the local communities across Pennsylvania hosting increased natural gas drilling.
  • On health care, Chris Lilienthal highlights a "consumers' hearing" in the State Capitol Rotunda on the one-year anniversary of the Affordable Care Act's passage. The hearing presented the perspective of Pennsylvanians who have benefited from the law - a perspective that was omitted from a congressional hearing on the landmark law also held at Pennsylvania's State Capitol this week.
  • On federal tax issues, Chris blogs about an interview on WHYY's Fresh Air that explained some of the accounting gimmicks that large corporations use to shelter income overseas and avoid as much as $90 billion a year in U.S. taxes.
  • On wages and income inequality, Mark Price shares research documenting that in economies where more people are covered by unions, there is less inequality.
  • Finally, Mark has this week's Friday Funny: The Daily Show's Jon Stewart takes on new governors, mean stepdads and confusion within the administration of Maine's new governor about what exactly a mural is.

More blog posts next week. Keep us bookmarked and join the conversation!

A 'Double Irish' Here, a 'Dutch Sandwich' There

St. Patrick's Day may be behind us, but plenty of U.S. corporations are still helping themselves to a "Double Irish." Or a "Dutch Sandwich," for that matter.

No, we're not talking about drinks or delicacies from these European countries. We're actually talking about complex accounting gimmicks that U.S.-based corporations use to shift foreign profits into accounts in Ireland, the Netherlands and Bermuda to avoid U.S. corporate taxes. Companies use other loopholes to shift income earned here to subsidiaries abroad. These practices cost the federal treasury as much as $90 billion a year.

Like We Said, Policymakers Are Focusing on the Wrong Deficit

New York Times economist David Leonhardt makes two simple points in today’s paper that we made in our release last week underscoring the need for more action to create jobs.

First, output in the United States has rebounded thanks to the Recovery Act, surpassing its level before the recession. The Act, according to our estimates, saved 400,000 jobs in Pennsylvania alone.

In Case You Missed It: Third and State Blog This Week

This week. we blogged about the upcoming two-year anniversary of the Recovery Act, President Obama's budget plan, a few hundred Valentine's Day messages for Governor Corbett, sales tax loopholes that only Amazon.com could love, and much more!

In case you missed it:

  • On the state budget, Michael Wood detailed Amazon's foot-stomping response to efforts by states to close a sales tax loophole that gives the online retailer an unfair competitive edge over other retailers. (Spoiler alert: The brick-and-mortar stores are none too happy about it!) Mike also shined some light on Pennsylvania's "conservative" debt levels and explained that Pennsylvania's debt service payments have long been low — between 3% and 4% of the state budget.
  • On health care, Chris Lilienthal shared some of the Valentines that Governor Corbett received this week from Pennsylvanians asking him to have a heart and save adultBasic.
  • On the federal budget, Chris highlighted some analysis from the Center on Budget and Policy Priorities on President Obama's budget proposal for the 2012 Fiscal Year. Mark Price, meanwhile, shared a video clip of Columbia University Professor Jeffrey Sachs discussing the federal budget and noting that both parties have the wrong priorities by cutting services vital to working- and middle-class families.
  • Finally, on the economy, Mark Price takes note of the upcoming two-year anniversary of the passage of the American Recovery and Reinvestment Act. Mark also blogged that policymakers are focused on the wrong deficit — Main Street America is a lot more concerned about a deficit in jobs and wages than they are about the federal fiscal deficit.

More blog posts next week. Keep us bookmarked and join the conversation!

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