Federal Budget and Taxes

On Tax Day, a Call to Close Loopholes

Posted by Anonymous on April 16, 2013 12:11 pm
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I joined several volunteers around lunchtime Monday outside the Harrisburg Post Office to talk to people heading to mail their tax returns about the need for real tax reform in Pennsylvania that includes closing loopholes and improving accountability.

Loopholes and special tax breaks shift the cost of public services to families and other businesses. This approach costs all of us. When companies don’t pay, the rest of us pay more in the form of higher property taxes, underfunded schools, mounting college tuition and a weakened economy.

On Monday, we gathered a number of signatures for a petition calling on state policymakers to close loopholes. Check out the slideshow with some of the highlights.

On Tax Day, Understanding Where Our Tax Dollars Go

With the deadline upon us for filing state and federal tax returns, the Pennsylvania Budget and Policy Center has put together a resource web page to help you understand what your tax dollars support. We also highlight reports and educational materials on closing tax loopholes and improving overall tax fairness.

As the chart to the right shows, most of the federal budget supports defense, Social Security and major health programs. As federal policymakers and citizens weigh key decisions about revenues and expenditures, it is instructive to examine what the federal government does with the money it collects. The chart is from the Center on Budget and Policy Priorities.

Public investments by the Commonwealth of Pennsylvania educate our children, keep our communities safe, move people to work over roads and transit systems, and care for seniors, children and people with disabilities. More than 80 cents of every state General Fund dollar is spent on education, health and human services, or public safety. See the graphic below detailing General Fund spending in 2012-13.

Third and State This Week: Expanding Health Care Brings Jobs, Governor's Flawed Tax Plan & Tax Credits that Work

Posted by Third and State on April 12, 2013 5:52 pm
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The week at Third and State, we blogged about a study showing the economic benefits of expanding Medicaid health coverage in Pennsylvania, the Governor's costly corporate tax cut plan, and two federal tax credits that work for Pennsylvania families.

IN CASE YOU MISSED IT:

  • On state taxes, Sharon Ward blogged that Governor Corbett's plan to cut the state's corporate net income tax over 10 years, at a cost of more than $800 million when fully phased in, would come at a time when the commonwealth is having difficulty meeting its current obligations.
  • On health care, Chris Lilienthal blogged about a recent study commissioned by the Hospital and HealthSystem Association of Pennsylvania finding that the federal opportunity to expand Medicaid health coverage will inject at least $3.2 billion annually into the state’s economy and support 35,000 to 39,000 jobs over the next seven years.
  • On poverty, Chris Lilienthal shared an infographic showing how critical the Earned Income Tax Credit and Child Tax Credit are to working families in Pennsylvania.
IN OTHER NEWS:
  • As Tax Day approaches, the Pennsylvania Budget and Policy Center (PBPC) has posted infographics and resources on its web site to help you understand what your tax dollars support and how we can improve overall tax fairness.
  • PBPC Director Sharon Ward published an op-ed on PennLive.com on the need for true state tax reform that closes loopholes and improves accountability, rather than another round of corporate tax cuts.
  • PBPC hosted a webinar debunking tax and budget myths promoted by the American Legislative Exchange Council (ALEC).
ADDITIONAL RESOURCES:
  • Learn more about public pension reform in Pennsylvania at the Keystone Research Center's Pensions Issue Page.
  • Learn more about the federal opportunity to expand health coverage in Pennsylvania at PBPC's Medicaid Expansion Resource Page.
  • Learn more about education in Pennsylvania at PBPC's Education Facts Page with data on student enrollment, education funding, and school poverty.

Friday Infographic: Two Tax Credits that Work for PA

Posted by Christopher Lilienthal on April 12, 2013 9:39 am
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The Earned Income Tax Credit and Child Tax Credit help working families make ends meet by both rewarding work and recognizing the additional expenses of raising children, as this infographic shows. Yet the U.S. House has approved a budget that makes a number of changes to both credits that could end up costing working families billions. Learn more about what’s at stake with these two tax credits in the federal budget debate and click on the infographic for a larger view.

Two Tax Credits that Work for PA

Expansion of Health Care Will Boost PA Economy, Hospital Study Finds

Acting on the federal opportunity to expand Medicaid health coverage will give Pennsylvania’s economy a real shot in the arm. As a new study from the Hospital and HealthSystem Association of Pennsylvania shows, it will inject at least $3.2 billion annually into the state’s economy and support 35,000 to 39,000 jobs over the next seven years.

Third and State Recap: Disappointing Job Growth, Ryan Budget's Impact on PA, Revenue Update, Frack Attack & More

After taking a break last week, Third and State is back with a blog recap for the past two weeks. We blogged about the latest U.S. jobs report and Pennsylvania revenue update, the billions Pennsylvania could lose under Congressman Paul Ryan's budget, Ed Rendell making the case for gas drilling in New York, how "Tax Freedom Day" overstates the taxes most Americans pay, and much more.

IN CASE YOU MISSED IT:

  • On jobs and the economy, Mark Price wrote that U.S. job growth continued to disappoint in March.
  • On federal tax and budget issues, Sharon Ward blogged about how Paul Ryan's budget cuts critical federal funding for Pennsylvania's schools, health care, clean water, law enforcement, and other key services, while providing big new tax cuts to corporations and the wealthiest individuals. We also wrote about tax credits for working families that are in jeopardy in federal deficit reduction talks. Finally, Chris Lilienthal blogged that the Tax Foundation's "Tax Freedom Day" presents a misleading picture of the taxes that most Americans pay.
  • On the Marcellus Shale, Sharon Ward blogged about how former Governor Ed Rendell got into some hot water last week with an op-ed in the New York Daily News touting the economic benefits of hydrofracking. Mark Price shared new data on natural gas-related employment in Pennsylvania.
  • On state budget and taxes, Michael Wood wrote that state revenue collections fell short of projections in four of the last five months, which could put 2013-14 spending in jeopardy.
  • On health care, Sharon Ward shared a recent op-ed she wrote explaining why Pennsylvania should take a federal opportunity to expand health coverage under the Affordable Care Act. Chris Lilienthal explained how you can let your lawmakers know that expanding health coverage is the right choice for Pennsylvania.
  • On education, Jamar Thrasher blogged about a recent report finding that the nation's poor students are not attending the nation's top colleges and universities.

IN OTHER NEWS:

  • The Pennsylvania Budget and Policy Center (PBPC) is launching a new policy webinar series next week, starting with one Tuesday that will debunk the tax and budget myths promoted by the American Legislative Exchange Council, or ALEC.
  • Read PBPC's full analysis of Pennsylvania's March revenue report.
  • Learn more about the threat facing federal tax credits for working families — including the Earned Income Tax Credit and Child Tax Credit.
  • Learn more about public pension reform in Pennsylvania at the Keystone Research Center's Pensions Issue Page.
  • Learn more about the federal opportunity to expand health coverage in Pennsylvania at PBPC's Medicaid Expansion Resource Page.
  • Learn more about education in Pennsylvania at PBPC's Education Facts Page with data on student enrollment, education funding, and school poverty.

U.S. Job Growth Continues to Disappoint in March

Nonfarm payrolls grew by 88,000 in March while the unemployment rate stood at 7.6%, little changed from the month before, according to a report this morning from the Bureau of Labor Statistics. Bill McBride at Calculated Risk wrote Thursday that the consensus forecast was for an increase in nonfarm payrolls of 193,000 and for the unemployment rate to hold steady at 7.7%.

Protect Crucial Tax Credits for Working Families in PA

Posted by Third and State on April 4, 2013 11:26 am
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The Pennsylvania Budget and Policy Center put out the following action alert today.

As Congress debates a plan to reduce the deficit, one thing is clear — deficit reduction should not fall on the backs of low-income working families.

Yet that is exactly what happens in a budget passed by the U.S. House of Representatives on March 21. The House plan makes a number of changes to the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) that could end up costing working families billions.

‘Tax Freedom Day’ Overstates Taxes Most Americans Pay

Posted by Christopher Lilienthal on April 2, 2013 4:40 pm
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Tax Foundation's Average Far More Than What Most Americans Pay in Federal TaxesThe Tax Foundation released its annual “Tax Freedom Day” report today that once again presents a misleading picture of the taxes that most Americans pay. It takes a one-size-fits-all approach to taxpayers — one that fits Bill Gates and Warren Buffett a lot better than it fits most Americans. The result is an “average” tax rate that is likely higher than the tax rates paid by eight out of every 10 U.S. households.

The Tax Foundation’s calculation also relies on estimates that often change once the actual numbers come in because it is based on anticipated tax revenue from thousands of states and municipalities. These have proven to be hard to predict, particularly in tough economic times, making the estimated data unreliable. 

Expanding Health Coverage Smart Thing to Do in PA

Posted by Anonymous on April 2, 2013 12:43 pm
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Governor Tom Corbett is meeting with U.S. Health and Human Services Secretary Kathleen Sebelius today to discuss the opportunity to expand Medicaid health coverage in Pennsylvania. As we await news from that meeting, I wanted to share the following op-ed I co-authored with Raymond Castro of New Jersey Policy Perspective, making the case that Governor Corbett should follow the lead of New Jersey's governor and expand health coverage to hundreds of thousands of hardworking Pennsylvanians.

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