Three New Tax Breaks Will Cost PA Schools and Services

After making deep cuts to schools, early childhood education, and health and human services, Pennsylvania lawmakers are now considering new tax breaks that will largely benefit a small number of higher-income earners.

How Sequestration Got Its Name

Automatic cuts to federal funding for a broad range of crucial services are in full effect. As the Pennsylvania Budget and Policy Center has written, this so-called federal sequestration will have a direct, disastrous impact on health care, education and jobs across Pennsylvania.

Podcast: PA Business Taxes Cut But Where Are the Jobs?

In a recent interview with Triad Strategies, I outlined some of our concerns about state tax cuts enacted over the past decade and the Governor's plan to enact a new round of state corporate income tax cuts in the years ahead.

Business tax cuts enacted since 1999 have drained close to $3 billion this year alone from state coffers. The cost of the tax cuts has more than tripled since 2002, with little to show for it. Pennsylvania ranked 27th in job growth in 1999-2000 and 34th in 2011-12.

As I told Triad: "If the goal is to use these tax cuts to improve Pennsylvania’s ability to create jobs, it just has not worked.”

Sharon Ward of the PA Budget and Policy Center Discusses Tax Policy from Triad Strategies on Vimeo.

Third and State This Week: Budget Pie Day, Cost of Tax Cuts and an Update on State Jobs

This week at Third and State, we blogged about the impact of corporate tax cuts on state investments in education and health care, why state lawmakers got half a pie from advocates this week, and the takeaway from Pennsylvania's latest jobs report. Plus we shared a podcast with Sharon Ward on education policy in Pennsylvania.

IN CASE YOU MISSED IT:

  • On state taxes and the budget, Michael Wood blogged about a new Pennsylvania Budget and Policy Center (PBPC) policy brief showing that the skyrocketing cost of corporate tax cuts are competing with state funding for schools, the state’s colleges and universities, early childhood education, and human services. 
  • With business tax cuts taking a larger share of the budget pie these days, Chris Lilienthal wrote about how advocates with the Better Choices for Pennsylvania Coalition delivered half a pie to every state legislator this week to send a message that Pennsylvania needs real tax reform. We also shared a 3-minute video with highlights from the Pie Day press conference.
  • On jobs and the economy, Mark Price analyzed the January jobs report for Pennsylvania.
  • And on education, Sharon Ward talked with Triad Strategies about PBPC's new Education Facts Page, which presents data and analysis on public, charter and private education in the commonwealth.

IN OTHER NEWS:

  • Read PBPC's latest policy brief titled $3 Billion Bill for Corporate Tax Cuts in 2012-13: Reduced Revenue Does Little for Jobs, Undermines Schools and Human Services.
  • Learn more about public pension reform in Pennsylvania at the Keystone Research Center's Pensions Issue Page.
  • Check out PBPC's Medicaid Expansion Resource Page, with more information on the federal opportunity to expand state coverage and how you can take action.
  • And view PBPC's Education Facts Page with data on student enrollment, education funding, and school poverty.

More blog posts next week. Keep us bookmarked and join the conversation!

Friday Video: How Tax Cuts Are Taking a Big Bite Out of the Budget Pie

The week, advocates delivered half a pie to every Pennsylvania legislator to remind them that a decade of large tax cuts for businesses has left schools, health care services, and local communities with a smaller share of the budget pie. Watch the following three-minute video for all the highlights.

A Growing Cost for Corporate Tax Cuts in PA

Over the past decade, Pennsylvania has enacted numerous corporate tax cuts, and the costs have skyrocketed, competing with state funding for schools, the state’s colleges and universities, early childhood education, and human services.

Laws to expand tax credit programs, change the way corporate taxes are assessed, reduce tax liabilities for merging mega banks, and eliminate the capital stock and franchise tax have drained a growing amount from the state treasury. The costs have more than tripled since 2003-04 from $850 million to just under $3.2 billion per year, as the Pennsylvania Budget and Policy Center documented in a new policy brief.

Cost of Corporate Tax Breaks in Pennsylvania

Tax Cuts Take a Bite Out of State Budget Pie

Half a PieAdvocates delivered half a pie to every Pennsylvania legislator today. Why half a pie?

To remind them that a decade of large tax cuts for businesses has left schools, health care services, and local communities with a smaller share of the state budget pie.

Tax cuts enacted since 1999 have drained close to $3 billion this year alone from state coffers. The cost of the tax cuts has more than tripled since 2002, with little to show for it. Too often, these tax cuts are put in place with very little accountability or obligation for companies to create jobs. In fact, Pennsylvania ranked 27th in job growth in 1999-2000 but fell to 34th in 2011-12.

A Mixed Bag for Pennsylvania's January Jobs Report

A few minutes before 5 p.m. on Friday, the Corbett administration released new data on the state's employment situation in January. The picture that emerged from the data was mixed.

On the one hand, the unemployment rate climbed by three-tenths of a percentage point to 8.2%, while the number of unemployed climbed by 18,000. On the other hand, nonfarm payrolls had a better month than typical with payrolls over the month climbing by 5,200 jobs. 

Podcast: Helping You Understand Education Policy In PA

In my interview with Triad Strategies last week, I discussed the Pennsylvania Budget and Policy Center's new Education Facts Page, which pulls together data and analyses on public, charter and private education in the commonwealth. We hope this web page will inform dialogue around state education funding and how we can provide better supports to students in our schools. Watch the short podcast below.

Education from Triad Strategies on Vimeo.

Third and State This Week: Talking State Budget, February Jobs, Pension Primers, and Income Inequality

This week at Third and State, we shared a podcast on the Governor's state budget proposal and the latest "pension primer" from the Keystone Research Center. We also blogged about the February jobs report, income inequality, a court ruling with implications for state health care funding, and more.

IN CASE YOU MISSED IT:

  • On state budget and taxes, Michael Wood wrote about General Fund revenue collections missing estimate in February. Sharon Ward shared a podcast from her sit down with Triad Strategies where she discussed the governor's state budget proposal and the opportunity to expand Medicaid in Pennsylvania.
  • On jobs and the economy, Chris Lilienthal rounded up the insights of leading national economists on the U.S. jobs report for February. Nonfarm payrolls in February increased by 236,000 jobs, and the unemployment rate fell to 7.7%.
  • On pensions, Stephen Herzenberg shared the Keystone Research Center's latest "pension primer," which focused on how a 2010 law significantly reduced state pension costs going forward.
  • Mark Price shared his op-ed on how we can break the back of rising income inequality in the U.S., published this week in The Guardian.
  • On health care, Chris Lilienthal blogged about a court ruling finding that the diversion of tobacco settlement funds away from health care violated the state constitution.

IN OTHER NEWS:

  • Check out the first three installments in the Keystone Research Center's new series of state pension primers intended to help demystify the often complex details at the heart of the pension debate.
  • Read the Pennsylvania Budget and Policy Center's latest State Revenue Tracker.
  • Check out PBPC's Medicaid Expansion Resource Page, with more information on the federal opportunity to expand state coverage and how you can take action.
  • And view PBPC's Education Facts Page with data on student enrollment, education funding, and school poverty.

More blog posts next week. Keep us bookmarked and join the conversation!

Syndicate content