April 11, 2016

Pennsylvania Budget and Policy Center: PA Should Raise Needed Revenues in Fair Ways: Short- and Long-term Approaches to Fixing Pennsylvania’s Unfair Tax System

ITEP Work in Action

 

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.
We first analyze the income tax increase (from 3.07% to 3.4%) and expansion of income tax forgiveness and sales tax base broadening proposed by Governor Wolf in his 2016-17 budget. This reveals that the governor’s revenue increases would be substantially less regressive than the current Pennsylvania state and local tax system.

“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.

We first analyze the income tax increase (from 3.07% to 3.4%) and expansion of income tax forgiveness and sales tax base broadening proposed by Governor Wolf in his 2016-17 budget. This reveals that the governor’s revenue increases would be substantially less regressive than the current Pennsylvania state and local tax system.”

 





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