Few in PA Would Be Affected by Ending High-income Tax Cuts

The Pennsylvania Budget and Policy Center is out today with a new analysis finding that President Obama’s plan to end federal tax cuts for high-income earners would have very little impact on taxpayers in most Pennsylvania counties.

In over half of the state's 67 counties, fewer than 1 in 100 residents (that's 1%) would pay the higher marginal tax rate on income above $200,000 for individuals and $250,000 for married couples.

The Bush Tax Cuts in Charts, Part 2

Yesterday, I shared some charts from the Center on Budget and Policy Priorities showing just how expensive the Bush tax cuts for high-income earners have been and will continue to be if policymakers extend them.

Today I wanted to highlight a few other charts from the Center to provide some more perspective in the debate over extending tax cuts for top earners and reducing the federal deficit.

The Bush Tax Cuts in Charts, Part 1

The Center on Budget and Policy Priorites tells many a budget story with pictures. Below are a few of the Center's best charts on the tax cuts enacted in 2001 and 2003 under President Bush, extended in 2010 under President Obama, and now set to expire in January.

One Is the Loneliest Number

Three Dog Night: OneOne is the loneliest number that you'll ever do …

Although I’m dating myself, some of you may recognize the Harry Nilsson song made famous by Three Dog Night. We recommend that Governor Tom Corbett download it to his iPod as he contemplates whether to accept a solitary bid from Camelot Global Services to take over the operation of the Pennsylvania Lottery. Whether privatizing state services or getting a new roof for your house, having a single lonely bidder is a red flag for a fleecing — for overpaying the contractor.

Third and State This Week: Americans Living on $2 a Day, Mayors Talk Federal Deficit and Youth Unemployment

This week at Third and State, we blogged about the increasing number of children and families living in extreme poverty, the latest on the state revenue picture, Pennsylvania mayors on a federal deficit deal and the long-term effects of youth unemployment.

IN CASE YOU MISSED IT:

  • On poverty, Jamar Thrasher wrote about a report on the increasing number of children and families living in extreme poverty, defined as surviving on $2 or less per day.
  • On federal budget and taxes, Chris Lilienthal blogged about a message from the mayors of Philadelphia, Allentown, York, and Reading to members of Congress as they craft a deficit reduction plan.
  • On the state budget, Michael Wood wrote about November state revenue collections and the threat new business tax cuts pose to the state's ability to invest in the fundamentals that ensure long-term growth.
  • And on jobs and unemployment, Jamar Thrasher blogged about a study showing the long-lasting damage a recession can have on young people unable to find their first job.

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

More Americans Scraping by on $2 a Day

study by the University of Michigan's National Poverty Center reports that more people are barely making ends meet in an era of too few jobs and a tattered safety net. According to the researchers, 1.4 million American households are living in "extreme poverty."

PA Budget in Fair Shape as Midyear Approaches But Business Tax Cuts Loom

Pennsylvania General Fund tax and other revenue collections are slightly ahead of official estimates through November. This is good news going into budget planning season for 2013-14. Unlike in many of the past few years, 2012-13 funding is less likely to be slashed to cover a midyear shortfall.

Mayors Ask Congress to Enact Deficit Plan that Keeps Cities Strong

Federal deficit reduction must include significant new revenue so that Pennsylvania cities, their residents and local economies can thrive again.

This was a critical point made by several Pennsylvania mayors during a conference call with reporters this week focused on what is at stake for cities in a federal deficit plan. The call was organized by the Pennsylvania Budget and Policy Center.

Great Recession Took a Toll on Youth Employment

A first job is a milestone that too many young people today are not reaching, and it could reduce their earnings throughout their careers, according to a new report from the Annie E. Casey Foundation. The Great Recession is a major culprit, as more youth are competing with out-of-work adults for a limited number of jobs.

Third and State This Week: Listen to Main Street, Tax Cuts Drive State Funding Gap and More on Federal Fiscal Debate

This week at Third and State, we blogged about how corporate tax cuts are contributing to a gap between state expenditures and revenues, an effort to get real small business voices heard in the federal fiscal debate, corporate tax subsidies run amok in the states, a fiscal cliff primer from Springfield's favorite CEO, C. Montgomery Burns, and more.

IN CASE YOU MISSED IT:

  • In response to the state's midyear budget briefing, Sharon Ward shared an infographic showing how unaffordable state business tax cuts are driving a gap between expenditures and revenues in the next budget.
  • On tax subsidies, Mark Price blogged about a New York Times report detailing the tax breaks and credits provided by state and local governments to businesses.
  • On federal taxes, Chris Lilienthal wrote about the Main Street Alliance's efforts to get real small business voices heard in the federal fiscal debate. Mark Price wrote about the different priorities of Pennsylvania's two U.S. senators in addressing federal deficit reduction.
  • On the state budget and other policies, Mark Price blogged about editorial page assessments of Governor Tom Corbett's administration midway through his first term.
  • Finally, we had a Friday Funny featuring Mr. Burns of The Simpsons explaining the fiscal cliff.

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

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