PA Taxes

Issue Spotlight: 2014-15 Budget

Governor Tom Corbett signed a $29.0 billion 2014-15 budget proposal on July 10. Here is the latest.

Budget Analysis: Approved 2014-15 Plan Relies on Uncertain Savings and One-Time Revenues

Mid-Year Review and the Road Ahead: Fiscal Issues Facing Pennsylvania

Commentary: IFO Report Shows Long Term Fiscal Problems

Revenue Update: 2014-15 Revenues Through December Higher than Estimate,Tax Cuts Loom

Browse Tax Publications Below

HARRISBURG, PA – Senator Scott Wagner (R-York) and Representative Seth Grove (R-Dover) today announced a series of budget cuts, problematic ideas, and one-time savings that do little-to-nothing to address the immediate structural deficit facing Pennsylvania for the 2016-17 fiscal year.

 

The tax on sugar-sweetened beverages (SSBs) proposed by Mayor Kenney, also known as the “soda tax,” is controversial mainly because, like other sales taxes, it takes a greater share of the income of poor families than rich ones. However, while the costs of the soda tax fall more heavily on those with low incomes, more of the benefit of the tax will go to low-income Philadelphians as well, for two reasons:

The first benefit of the tax flows from how the new revenue will be spent — on pre-K education, community schools, and parks and community recreation centers. Pre-K education helps kids from low- and moderate-income families have a better start in life. Studies have shown that children who attend pre-K programs score higher on academic tests and that these benefits are greater for those whose families have lower incomes. And the effects of Pre-K education are long lasting: long-term studies have shown that those who receive Pre-K education have higher IQs at age 5, have higher high school graduation rates, are more likely to own a home and have higher incomes at age 40.

 

This briefing paper analyzes several options for raising revenue for the Pennsylvania state budget which would fall much less on middle- and low-income families than the existing Pennsylvania state and local tax system.

In his budget address, Governor Wolf observed that Pennsylvania faces a choice of two paths. Taking one path would require us to deal with the reality of our structural deficit and raise revenues to close it. It would enable government to continue to meet its responsibilities to educate our children, serve those who need our help, protect the environment and encourage economic growth. Taking the other path would require us to accept devastating cuts to education and health and human services.

In response to Governor Wolf’s 2016-17 budget proposal the Pennsylvania Budget and Policy Center issued this statement from PBPC director Marc Stier.

Gov. Tom Wolf presented his 2016-17 State Budget Proposal on February 9th.  The Pennsylvania Budget and Policy Center will be posting analysis, infographics and related documents on this page as they become available. Check back often for the latest updates.

February 2, 2016 (Harrisburg, PA) – A diverse coalition of organizations today released a letter to the governor and members of the General Assembly, “A 2016-17 Budget for Pennsylvania’s Future,” that recommends ways to fairly raise taxes to increase investments in education and workforce development, promote shared prosperity, protect those in need, protect the environment, reform the criminal justice system, and revitalize democracy.

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