Poverty

Friday Infographic: Two Tax Credits that Work for PA

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

Third and State This Week: What to Make of Fiscal Cliff Deal, PA Revenue Update & Slow Down Lottery Privatization

It was a short week at Third and State coming off the holidays, but we still have a few must reads for you. We blogged about the Fiscal Cliff deal, the Corbett administration's decision to slow down the lottery privatization train and the latest on state revenue collections.

IN CASE YOU MISSED IT:

  • On federal taxes, Sharon Ward wrote that the Fiscal Cliff deal reached by President Obama and Congress on January 1 was both historic and disappointing — and it leaves much unsettled.
  • On the state budget, Michael Wood blogged about December revenue collections which put the state $171 million ahead of estimates midway through the 2012-13 Fiscal Year.
  • On privatization, Stephen Herzenberg wrote that the Corbett administration made the right decision in slowing down the lottery privatization train and that even more time was needed for a full and transparent review.

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

What to Make of the Fiscal Cliff Deal?

Tell us what you think about the Fiscal Cliff deal. Take our two-question survey.

The agreement reached by President Obama and Congress on January 1 was both historic and disappointing — and it leaves much unsettled. The urgency of the Fiscal Cliff has dissipated, but significant threats remain to federal funding for state and local services as well as refundable tax credits for low-income working families, Medicaid, Medicare and Social Security.

Third and State This Week: Few in PA Get Top Tax Cuts, Single Bid for PA Lottery, Minimum Wage Boost & Latest on PA Jobs

Note: Third and State is taking a well-deserved break from December 23, 2012 through the end of the year. We will be back in action January 2, 2013. See you then.

This week at Third and State, we blogged about new analyses finding that few Pennsylvanians would benefit from extending tax cuts for high-income earners and that questions remain about the plan to privatize the Pennsylvania Lottery. Plus, a look at the 10 states that will give minimum wage workers a raise in the New Year and the latest Pennsylvania jobs report.

IN CASE YOU MISSED IT:

  • On federal taxes, Sharon Ward shared a new analysis from the Pennsylvania Budget and Policy Center finding that President Obama’s plan to end federal tax cuts for high-income earners would have very little impact on taxpayers in most Pennsylvania counties.
  • On privatization, Stephen Herzenberg observed that "one is the loneliest number" especially when it comes to the number of bids received by the commonwealth to privatize the operations of the Pennsylvania Lottery. Steve's post highlights the findings of a recent Keystone Research Center policy brief on the lottery plan.
  • On jobs and the economy, Mark Price wrote that the decline in Pennsylvania's unemployment rate in November is a welcome change, but that the jobless rate remains unchanged from a year ago at 7.8%.
  • On wages, Jamar Thrasher blogged about 10 states (none of which are called Pennsylvania) that will increase their minimum wage rates in the New Year.
  • Finally, Chris Lilienthal shared charts from the Center on Budget and Policy Priorities here and here providing some perspective in the debate over extending the Bush tax cuts.

IN OTHER NEWS:

  • The Pennsylvania Budget and Policy Center issued a statement saying that a new U.S. Chamber of Commerce/IHS report on Pennsylvania's energy future makes inflated claims about gas drilling's impact on job growth and tax revenue, while ignoring the costs that drilling imposes on citizens, the environment, and communities.

Third and State This Week: Americans Living on $2 a Day, Mayors Talk Federal Deficit and Youth Unemployment

This week at Third and State, we blogged about the increasing number of children and families living in extreme poverty, the latest on the state revenue picture, Pennsylvania mayors on a federal deficit deal and the long-term effects of youth unemployment.

IN CASE YOU MISSED IT:

  • On poverty, Jamar Thrasher wrote about a report on the increasing number of children and families living in extreme poverty, defined as surviving on $2 or less per day.
  • On federal budget and taxes, Chris Lilienthal blogged about a message from the mayors of Philadelphia, Allentown, York, and Reading to members of Congress as they craft a deficit reduction plan.
  • On the state budget, Michael Wood wrote about November state revenue collections and the threat new business tax cuts pose to the state's ability to invest in the fundamentals that ensure long-term growth.
  • And on jobs and unemployment, Jamar Thrasher blogged about a study showing the long-lasting damage a recession can have on young people unable to find their first job.

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

More Americans Scraping by on $2 a Day

study by the University of Michigan's National Poverty Center reports that more people are barely making ends meet in an era of too few jobs and a tattered safety net. According to the researchers, 1.4 million American households are living in "extreme poverty."

Third and State This Week: Listen to Main Street, Tax Cuts Drive State Funding Gap and More on Federal Fiscal Debate

This week at Third and State, we blogged about how corporate tax cuts are contributing to a gap between state expenditures and revenues, an effort to get real small business voices heard in the federal fiscal debate, corporate tax subsidies run amok in the states, a fiscal cliff primer from Springfield's favorite CEO, C. Montgomery Burns, and more.

IN CASE YOU MISSED IT:

  • In response to the state's midyear budget briefing, Sharon Ward shared an infographic showing how unaffordable state business tax cuts are driving a gap between expenditures and revenues in the next budget.
  • On tax subsidies, Mark Price blogged about a New York Times report detailing the tax breaks and credits provided by state and local governments to businesses.
  • On federal taxes, Chris Lilienthal wrote about the Main Street Alliance's efforts to get real small business voices heard in the federal fiscal debate. Mark Price wrote about the different priorities of Pennsylvania's two U.S. senators in addressing federal deficit reduction.
  • On the state budget and other policies, Mark Price blogged about editorial page assessments of Governor Tom Corbett's administration midway through his first term.
  • Finally, we had a Friday Funny featuring Mr. Burns of The Simpsons explaining the fiscal cliff.

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

Morning Must Reads: Different Priorities For Different Senators

Proposals to avert the fiscal cliff shouldn't increase poverty or inequality or slow the economic recovery. Those simple common-sense principles appear to be gaining increasing visibility and support, which is the best news this morning.

Morning Must Reads: One Bidder? What Could Go Wrong?

The Keystone Research Center does not oppose the use of private contractors to provide services to federal, state and local governments as a matter of philosophy.

On pragmatic grounds, we DO support good governance, including carefully assessing the costs and benefits of privatization. Too often privatization is a goal in and of itself and good governance — careful weighing of pros and cons — isn't even in the vocabulary of privatization advocates.

Pulling Apart: Income Inequality Has Grown in PA

Income inequality has grown in all parts of the country since the late 1970s, and Pennsylvania has not been immune to the trend, as a new national study out today shows.

A joint effort of the Center on Budget and Policy Priorities and the Economic Policy Institute, the study finds that income gaps widened in Pennsylvania between the late 1990s and the mid-2000s, with earnings for low-income families dropping as the income of the wealthiest continued to rise.

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