Posts by mark price

The Wealth Strippers Are Back!!!

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Unintended Consequences? Property Tax Elimination Increases Taxes on the Middle Class to Reduce Taxes for high income families

The budget end game has focused a lot on property tax cuts. The budget framework agreement includes property tax relief, the allocation of which has not yet been worked out. And now the Pennsylvania Senate will consider SB 76, a bill to eliminate school property taxes early next week. Property tax elimination would be paid for by raising the sales tax rate to 7 percent and expanding it to cover more services, and by raising the personal income tax rate to 4.34 percent.

October Payrolls Up Overall but Down in Mining, Logging and Schools

This morning the Bureau of Labor Statistics reported that the unemployment rate in Pennsylvania was down slightly to 5.1 percent, and nonfarm payrolls were up by 13,700 jobs last month, each from their respective September levels.

After two months of declines in nonfarm payrolls, the return to growth in October was  a welcome change.

Who Pays For An Increase in the Sales Tax: Analysis of the Tax Incidence of an Increase in the Sales Tax from 6% to 7.25%

Today we released new analysis of the tax incidence of a proposal to raise the state sales tax rate from 6% to 7.25%.  Gov. Wolf and legislative leaders are currently negotiating over the terms of a plan to cut property taxes which would be financed by this sales tax increase.

The Road Not Taken

Over the past few years, many other states, similar to Pennsylvania in 2011 and again today, have faced critical choices about whether to raise state revenues, hold firm to “no new taxes” or even cut taxes further. Today we released the results of our examination of the experience of four states, as well as Pennsylvania, and the different roads they each took.