IFO analysis: Nearly 2 million workers could see pay increase with $12 minimum wage; 34,000 could lose jobs

IFO analysis: Nearly 2 million workers could see pay increase with $12 minimum wage; 34,000 could lose jobs

The state’s Independent Fiscal Office has released new estimates on how Pennsylvania workers would be affected by an increase in the minimum wage, which suggests that close to 2 million workers could see increases in their pay if the state’s base wage is raised to $12 an hour.

 

However, the IFO says the policy wouldn’t come without some consequences — namely, a potential loss of approximately 34,100 jobs.

Thursday, October 10, 2019/Author: Justin Sweitzer
Categories: News and Views
Closing the loophole: Why some businesses pay less in corporate taxes and how Democrats want to fix it

Closing the loophole: Why some businesses pay less in corporate taxes and how Democrats want to fix it

Currently, businesses and corporations in Pennsylvania can shift their earnings to states with lighter tax burdens to pay less in corporate net income taxes.

 

It’s a strategy that is commonly referred to as the “Delaware loophole” since Delaware does not levy a corporate net income tax on business subsidiaries holding intangible assets. This allows multi-state businesses to transfer money to their Delaware-based subsidiary through transactions and other maneuvers to avoid paying the CNIT in other states, including Pennsylvania.

Wednesday, July 17, 2019/Author: Justin Sweitzer
Categories: News and Views
IFO releases projections for school property tax replacement

IFO releases projections for school property tax replacement

The Independent Fiscal Office (IFO) has released their latest projections that detail how much of an increase in personal income taxes (PIT) the state would need to impose to generate revenue if school property taxes for homesteads were eliminated.
 
The IFO determined that to raise enough revenue through a PIT to replace homestead property tax revenues, the state would need to increase the PIT by 1.9 percent to generate the same amount of funding. This would raise approximately $8.5 billion in revenue in the 2019-2020 fiscal year, roughly the same amount that taxing properties is expected to bring in.
Monday, March 18, 2019/Author: Justin Sweitzer
Categories: News and Views
IFO report predicts proposed severance tax would make up for cut in state corporate income tax rate

IFO report predicts proposed severance tax would make up for cut in state corporate income tax rate

A recently released Independent Fiscal Office review of Governor Tom Wolf’s 2018 budget analyzed three marquee proposals found within — a cut in the state’s corporate net income tax, a natural gas severance tax and raising the minimum wage to $12.00.

Taken together, the IFO predicted an average annual gain of $418 million each year in state revenue, which peaks in the early 2020s before falling down by 2023.

Friday, April 20, 2018/Author: Stephen Caruso
Categories: News and Views
House lawmakers analyze effectiveness of job creation programs

House lawmakers analyze effectiveness of job creation programs

House legislators discussed how to increase job creation Wednesday after Pennsylvania lost 10,000 jobs last year.


The House Appropriations Committee invited testifiers that represented the Department of Labor and Industry, Pennsylvania Department of Community and Economic Development (DCED), and Pennsylvania Higher Education Assistance Agency (PHEAA) to discuss the agencies’ various programs.


“We want to get rid of programs that don’t work and bolster the ones that do,” said Chairman Stan Saylor (R-York).

Wednesday, February 21, 2018/Author: Taylor Allen
Categories: News and Views
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