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DECEMBER 8, 2009 | Commentary by ABHILASH SAMUEL
Outward Bound - Taxes Driving People Out Of Pennsylvania
Between 2000 and 2008, Pennsylvania suffered the depletion of one of its most valuable resources - people. During this period, the state lost 56,000 net residents, according to U.S. Census Bureau data, ranking 11th in migration loss among all states. In the decade prior, Pennsylvania lost over 250,000 net residents to interstate migration - rank
AUGUST 11, 2009 | Policy Points by COMMONWEALTH FOUNDATION
How Do Pennsylvania Taxes Stack Up?
Since 1990, Pennsylvania has gone from 24th in state and local tax burden to 11th. Yet Gov. Rendell has proposed another round of tax hikes—including raising the state Personal Income
NOVEMBER 23, 2008 | Commentary by NATHAN BENEFIELD
Government Can't Cure Our Economic Woes
Pennsylvania is facing a deep shortfall in revenue which, through October, stands at $565 million. Putting this in perspective, the shortfall in 2002-03—which led to increases in the state personal income and cigarette taxes, as well as a new
Recent Blog Posts
NOVEMBER 21, 2011
Right to Work Helps Oklahoma Economy
A new analysis from the Oklahoma Council of Public Affairs shows that since the Sooner State passed a right to work law in 2001—allowing all workers to choose whether or not to join or pay a fee to a union—the state has outpaced the nation in manufacturing job growth.
At the same time, Oklahoma has become a net winner in state-to-state migration, as more residents moved to Okalahoma from other states than left the state for elsewhere. This reverses a downward trend Oklahoma had been expericencing prior to 2000.
Naturally, the vast majority of domestic imigrants came from forced unionization states. Concidentally, Pennsylvania, a forced union, state has been among the biggest losers in state migration for decades.
posted by NATHAN BENEFIELD | 10:30 AM | 0 comment
OCTOBER 28, 2011
PA's High Unemployment Taxes
Pennsylvania employers pay some of the highest unemployment insurance taxes in the nation, according to a new study by the Tax Foundation. Tax rates vary based on the frequency of layoffs. If a company frequently lays off employees, their unemployment insurance taxes will be at or near the maximum rate. But if a company rarely lays off employees, their tax rate will be close to the minimum rate.
Nationally, Pennsylvania has the highest minimum employer tax rate, which ranges from zero to 2.7 percent. The state's maximum employer tax is the fourth-highest in the nation.
The study also found states raise unemployment taxes on employers during times of high unemployment and lower them during economic booms. This pattern makes it more difficult for businesses to hire when unemployment is high and easier when jobs are plentiful.
posted by ELIZABETH STELLE | 10:46 AM | 0 comment
SEPTEMBER 26, 2011
By the Way, Residents Don't Like High Taxes
Dr. Antony Davies, a member of CF's Council of Scholars, and John Pulito add to the growing body of research showing higher state taxes drive out residents. Their new study, "Tax Rates and Migration," finds lowering "high-income" tax thresholds, high overall state income taxes and high property taxes deplete populations.
Often known as "millionaire taxes," states lower personal income tax thresholds to include more than millionaires in the highest bracket. For instance, anyone in Arizona who makes $150,000 or more a year pays the highest level of income tax, in Ohio it is $200,000. The evidence suggests people tend to leave states that lower "high-income" tax thresholds, the same way they leave states that raise tax rates. Pennsylvania does not have tax thresholds because the state levies a flat 3.07 percent personal income tax, but seven states don't even have a state personal income tax.
However, Pennsylvania is a large offender in the property tax category. Property taxes have skyrocketed, increasing by $2.1 billion, or 26 percent, from 2004 to 2008—exceeding both inflation and student enrollment. The authors find property tax rates have a greater effect on out-migration than high-income tax rates.
For example, a one percentage point increase in the property-tax differential between two states has almost three times the effect on migration as does a one percentage point increase in the difference in high-income tax rates.
High levels of local and state taxation combined with heavy business taxation are a major reason Pennsylvania is losing residents to other states.
posted by ELIZABETH STELLE | 03:00 PM | 0 comment
