1. Tax Fairness in the Keystone State: Challenges and Opportunities
June 9, 2016
Aidan Russell Davis
Senior Policy Analyst

2. Introduction to ITEP
The Institute on Taxation and Economic Policy (ITEP) is a non-profit, non-partisan research organization that works on federal, state, and local tax policy issues. ITEP's mission is to ensure that elected officials, the media, and the general public have access to accurate, timely, and straightforward
information that allows them to understand the effects of current and proposed tax policies.

3. PA’s Tax System is More Regressive Than the National Average
Comparing PA to the US average State and local taxes as share of income, 2015

4. Incidence in Nearby States
Delaware
New York
Maryland
Ohio
New Jersey
West Virginia

5. Regressive States Typically Have Low Reliance on Income Taxes

6. Fairness and Other Tax Reform Goals
Adequacy
Sustainability
Simplicity
Competitiveness

7. Tax Fairness: Why Should We Care?
Overwhelming public support
Avoid taxing poor people further into poverty
The federal tax system incentivizes progressive structures
A sustainable tax system can’t rely on its poorest residents
top 1% has more income than the bottom 40%
top 20% has more than the bottom 80%
Progressive tax systems are more sustainable. 7

8. Fairness-Enhancing Reform Strategies for Pennsylvania
Increase role of personal income tax
Amend constitutional restriction
Tax “wealth” at a higher rate than wages
Simulate graduated tax with expanded exemptions
Expand “tax forgiveness” credit
Enact refundable low-income tax credits
Expand sales tax base to include services

9. Follow us for more information…
@iteptweets

10. Aidan Russell Davis