State Budget and Taxes

Fair Share Tax Plan - 2019 Edition

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.

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

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

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

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