Fair Taxes, Lower Taxes (and JOBS)
- Pennsylvania has the 6th most unfair state and local tax system in the country.
- Low- and mid-income families pay two-and-a-half to three times as big as share of their in income in taxes than the top 1%.
- A new plan for state taxes would share the tax burden far more fairly. This plan reduces taxes for low- and mid-income families while at the same time raising the revenue necessary for schools, roads & bridges, social services and a budget that’s honestly balanced.
The Institute for Taxation and
Economic Policy reports that Pennsylvania has the 6th most unfair state
and local tax system in the country.
In our system, middle- and low-income Pennsylvania taxpayers pay two-and-a-half to three times as big a share of their income in taxes, on average, as the top 1%.
Here’s why: Sales and property taxes hit lower-income groups hardest and Pennsylvania has a flat income tax that hits all income groups nearly equally. Under the current tax structure, low- and mid-income families pay far more than their fair share of taxes. Increasing taxes to raise revenue hits this group hard and directly.
Here's how: A new plan would eliminate taxes on the first $30,000 of income for every tax payer and increase the taxes (in certain categories, like non-wage income) for income above $30,000.
the new plan, taxes go down for low- and mid-income families and go up for
high-income families, especially the top 1%, so that everyone is paying closer
to their fair share. (Even with the proposed changes, the very wealthy pay less
in taxes as a share of their income than other families do.)
Putting the Wellbeing and Happiness of Everyday People First
Under a new and fair plan for state
taxes, reduce taxes on low- and mid-income households while at the same time
raising the money needed to fund our schools, pay for bridges and roads, provide
vital social services and honestly balance our budget.
For more information
Who Pays? Pennsylvania State & Local Taxes in 2015 (Institute on Taxation and Economic Policy, available here, http://www.itep.org/whopays/states/pennsylvania.php)
Short- and Long-term Approaches to Fixing Pennsylvania’s Unfair Tax System (Pennsylvania Budget and Policy Center, April 2016, available here, https://pennbpc.org/sites/pennbpc.org/files/PBPC_TaxFairness Brief_2016_Final_1.pdf)