State Budget and Taxes

KRC/PBPC Insider News for the Week Ending Oct. 23, 2015

Posted by Shelley Aragoncillo on October 26, 2015 12:19 pm

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State House Majority Leader Dave Reed told Patriot-News/Pennlive.com Editorial Page Editor John Micek last week that the next few weeks will be critical in the ongoing state budget negotiations. Leader Reed said there is bipartisan support for more funding for education and a lot of interest in property tax relief. But there isn’t agreement yet on how these should be achieved. "We want to fix the structural deficit.

Why the Budget Matters: Way No. 4 -- Pre-Kindergarten Funding

Posted by Shelley Aragoncillo on October 22, 2015 4:23 pm

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Pre-K Expansion Would Enhance Educational Opportunity and Economic Growth and Pay for Itself Many Times Over

14,000 more children statewide would gain entrance into pre-kindergarten

KRC/PBPC Insider News for the Week Ending Sept. 4, 2015

Posted by Shelley Aragoncillo on September 8, 2015 11:05 am

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The Associated Press reported that Gov. Wolf is trying a new strategy as the state budget impasse extended into its ninth week – negotiating in private meetings with top Republican leaders instead of in brief but large gatherings with dozens of legislators and their staff. On Sept. 1, Gov. Wolf met at his official residence with Senate Majority Leader Jake Corman and House Majority Leader Dave Reed.

IFO Forecasts Lower Property Tax Revenue in Future

Posted by Shelley Aragoncillo on February 6, 2015 5:12 pm

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Act 1 may not be perfect, but it has slowed the growth of school property taxes. Since the passage of Act 1 in 2006, and its revision in 2011, the growth of school property taxes has moderated in Pennsylvania. A newly revised forecast from the Pennsylvania Independent Fiscal Office (IFO) shows more modest growth in coming years.

Shortsighted Policies Led to Pa.'s Money Woes

Posted by Shelley Aragoncillo on September 16, 2014 4:48 pm

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State Budget and Taxes

Pennsylvania is already short of money and borrowing to pay bills less than three months into a new budget year. And that's after transferring $225 million from other state funds in July.

State officials can't blame a natural disaster, unfortunate accident or month of unexpectedly low tax collections. Instead, the culprit is a built-in imbalance between revenues and expenditures triggered, in large part, by policymaker choices.

Tax revenues continue to nosedive in May. Now $174 million less than last year due to corporate tax cuts. 2014-15 shortfall continues to grow.

Posted by Shelley Aragoncillo on June 5, 2014 11:18 am

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State Budget and Taxes

For the sixth straight month, General Fund revenues fell short of estimate in May, missing the target by $108 million, or 5.5% for the month. The year-to-date revenue deficit grows to $613 million, or 2.3% below estimate (excluding the early transfer of liquor store profits in March). The deficit is now larger than the $581 million the Independent Fiscal Office had forecasted for the fiscal year just one month ago, as tax collections in nearly every category fell short of estimate in May.

1314 Revenue Tracker by Month May 2014

May 2014 Revenues to Estimate

May 2014 Revenues to Prior Year

Fair Share Tax Plan - 2019 Edition

Posted by Marc Stier on April 18, 2019 3:47 pm

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State Budget and Taxes

The main reason that Pennsylvania’s tax system is so upside-down—with the top 1% paying only 6% of their income in taxes while the middle 20% pays 11.1% and the bottom 20% pays 13.8%—is that the Pennsylvania Constitution prohibits us from enacting a graduated personal income tax. Sales and property taxes tend to take a higher percentage of the income of taxpayers at the bottom and in the middle than at the top. But graduated income taxes in many states—including all of our neighbors—compensate by taxing those at the top at a higher rate.

Tax Freedom Day? Not Really.

Posted by Diana Polson on April 15, 2019 10:55 am

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Every year the Tax Foundation, a conservative think tank, releases a report about “Tax Freedom Day,” a made-up day of the year that indicates when the nation as a whole has earned enough money to pay this year’s federal, state, and local taxes. This year, the report says, Tax Freedom Day falls on April 16, 2019.

Pennsylvania’s Tax Structure Worsens Income Inequality, the Racial Wealth Gap and Contributes to our Revenue Inadequacy

Posted by Diana Polson on March 26, 2019 9:38 am

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State Budget and Taxes

State tax systems across the United States vary tremendously in their structure, resulting in varied impacts on income inequality, racial wealth disparities, and revenue adequacy. As the Institute on Taxation and Economic Policy’s new report shows, states with no personal income tax or a flat personal income tax rate tend to fare the worst.

Governor Wolf's 2019-2020 Budget: A First Take

Posted by Marc Stier on February 23, 2019 12:29 am

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State Budget and Taxes

Governor Wolf’s 2019-2020 budget proposal reflects the unique politica

Third and State