State Budget and Taxes

Cutting taxes won't spur economic growth

Flying in the face of the often heard rhetoric that tax cuts are the cure for all ills, a new study finds that cuts to business taxes are at best ineffective, and at worst harmful to state economic growth and development. A better strategy for growth is to increase investment in education and infrastructure.

A funny thing happened to our data on the way to Philadelphia

If you have been following this gubernatorial election, or just watching television, you might have noticed that the Wolf campaign has been arguing that 27,000 jobs were lost in education in Pennsylvania.  That’s a figure my colleagues and I released in late August in our annual State of Working Pennsylvania.  To generate that number we used data from the Bureau of Labor Statistics to calculate education employment in local governments in the 2010-11 school year, which ran from July 2010 to June 2011.

Pennsylvania's Revenue-Estimating Process Doesn't Add Up

The Pennsylvania Budget and Policy Center’s analysis last month of the state’s 2014-15 budget cites a “myriad of dubious revenue sources, including an increase in collections well above what the Independent Fiscal Office projected.”

Now comes a timely, new report from the non-partisan Center on Budget and Policy Priorities in Washington, D.C., grading the process by which Pennsylvania (and other states) generate revenue estimates for annual budgets.

Internet access taxes – let state and local government decide

Since 1998 when it passed the Internet Tax Freedom Act (ITFA), Congress has banned state and local governments from enacting new taxes on internet access or including internet access in existing sales taxes. Now Congress is considering making the ban permanent. The House Judiciary Committee recently approved a bill that would do just that.

Facts on Marcellus Shale Jobs and Taxes

Last night, the House of Representatives passed a budget plan for 2014-15.  However, how this plan is paid for is still a mystery. One commonsense idea that could still be included in the budget is the passage of severance tax on natural gas drillers. For 2014-15 a 5% tax could raise over $400 million in new funds above the current impact fee.  This could go a long way in restoring funding cut out of the House budget plan.  

Pension Update - Time to Go Back to the Drawing Board

We're closing in on the end game of the Pennsylvania budget process and lawmakers are considering two different pension proposals -- both of which would be a step backward. Here's an update on these options, with links to where you can find more information.

Expanding Medicaid: Close the Budget Gap. Check. Insure Thousands of Pennsylvanians. Check.

As lawmakers continue debating how to close a $1.5 billion budget gap, there is a particularly valuable and compassionate policy option still on the table: Medicaid expansion. Under the Affordable Care Act (ACA), the federal government will commit to paying 100% of coverage costs for new enrollees under Medicaid expansion, through 2016. This has the combined effect of easing the financial burden of the state, and giving hundreds of thousands of Pennsylvanians access to health care coverage.

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