Tax Fairness

Tax Fairness for Pennsylvania
http://joehoeffel2010.com/tax-fairness

Pennsylvania has one of the most regressive tax systems in the nation. The poorest 20% of wage earners pay 12 cents in state taxes per dollar earned, while the richest 1% pay only 4.3 cents after the federal deduction for state and local taxes. Middle Class wage earners also pay more than the wealthiest Pennsylvanians.¹

Joe Hoeffel believes it is time for Pennsylvania to join the 34 other states that have a graduated income tax. To make this change, the state constitution must be amended. Our tax dollars fund critical services that Pennsylvanians depend on every day, and Joe Hoeffel stands ready to lead the fight to make our tax system fairer.

Middle class and lower income families should not be forced to bear an unfair share of the cost of critical services. As Governor, Joe will:


FIGHT FOR LOCAL PROPERTY TAX REFORM

We need to fix the way we fund education in Pennsylvania. Our over-reliance on property taxes burdens home-owners, especially seniors on a fixed income. As Governor, Joe will continue to fight to base school taxes on income and ability to pay, not the property tax. And he will continue Governor Rendell’s commitment to provide full state funding for the school subsidy formula.


CLOSE CORPORATE TAX LOOPHOLES

Joe will close corporate tax loopholes that allow huge corporations to hide their Pennsylvania earnings in other states to avoid paying their fair share of taxes in PA. This is also unfair to companies that pay their fair share. Joe will fight for “combined reporting” which has been adopted by many states and eliminates the ability of corporations to shift earnings among subsidiaries and effectively reduce their Pennsylvania tax obligation.²


ENACT A “SEVERANCE TAX” ON NATURAL GAS EXTRACTION

While the development of the natural gas industry is a positive development for our commonwealth and our workers, there is a real impact on our local communities, our infrastructure, and our environment. Other states have set reasonable tax rates for this extraction, so that local and state taxpayers are not left holding the bag. Joe supports a severance tax on natural gas production.


TAX ALL TOBACCO PRODUCTS

Joe believes it is time to end Pennsylvania’s distinction as the only state that does not tax smokeless tobacco.

¹ Pennsylvania Budget and Policy Center
² Pennsylvania Budget and Policy Center