Update to the Fair Share Tax Plan to Support Public Investment in Pennsylvania

From the Pennsylvania Budget and Policy Center (http://www.pennbpc.org):

PENNSYLVANIA – The Pennsylvania Budget and Policy Center today released an update to a revenue proposal that would raise $2.2 billion annually, while cutting taxes or leaving them level for 82% of Pennsylvanians. The proposal, called the Fair Share Tax Plan, will be introduced in the state House this session. The prime co-sponsors of the bill, Rep. Chris Rabb (D-Philadelphia), Rep. Sara Innamorato (D-Lawrenceville), and Rep. Elizabeth Fiedler (D-Philadelphia) will be circulating a co-sponsorship memo this week.

“The Fair Share Tax would take a major step toward fixing Pennsylvania’s broken tax system and raise needed revenues to invest in public goods that are critical in the effort to create thriving communities and individual opportunity in our state — things like education, protection for our air and water, and human services,” says Marc Stier, Director of the Pennsylvania Budget and Policy Center and author of the report.

• Read the full report on the updated proposal here.
• See how Pennsylvanians in each state Senate district would fare under the Fair Share Tax Plan here.
• See how Pennsylvanians in each state House district would fare under the Fair Share Tax Plan here.

The Fair Share Tax Plan:

• Cuts the tax rate on wages and interest (which almost all taxpayers have), but raises the rate on other forms of income (like dividends, capital gains, and business profits) that mostly go to the rich.
• Would raise $2.2 billion annually, while lowering taxes for 47% of families, with no increase for 35% of families.
• Brings in needed revenue, 80% of which comes from the richest fifth of Pennsylvania taxpayers and 16% of which comes from out-of-state taxpayers. This means that only a tiny 4% of the additional revenue comes from the bottom four-fifth of Pennsylvania taxpayers.

“One argument we hear often is how Pennsylvania is overtaxed. That is far from true. For example, even after implementation of the Fair Share Tax, the effective rate on the top 1% of Pennsylvania taxpayers will be only 3.9%, less than that of any neighboring state and only about half of the rate found in New York and New Jersey,” said Stier.

Learn more at https://www.pennbpc.org/fair-share-tax-plan-pennsylvania-%E2%80%94-2019-update.

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