Tag: EITC

Republicans Lament Failure to Include Lifeline Scholarships in Pennsylvania Budget So Far

Bradley Vasoli

Just four days remain until June 30, Pennsylvania’s Fiscal Year 2023-24 budget deadline and much still divides Republicans who control the state Senate from Governor Josh Shapiro and his fellow Democrats who control the House of Representatives. 

The school-choice debate is among the most concerning facets of budget negotiations so far for the GOP. Shapiro indicated last year that he wanted the commonwealth to create “lifeline scholarships,” i.e. a private-school choice program for economically disadvantaged students in poorly performing schools. Republicans hoped they could coalesce with him around the policy’s enactment.

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Pennsylvania House Passes State Earned Income Tax Credit

Bradley Vasoli

Pennsylvania state representatives this week passed legislation creating a state version of the Earned Income Tax Credit (EITC). 

The federal EITC, which went into effect in 1975, is designed to incentivize work. It ranges from $560 to $6,935 and goes to households earning up to $59,187. The proposed state-level counterpart would allow low-wage earners to claim 25 percent of the federal credit on their Pennsylvania taxes. Thirty-three states and the District of Columbia offer a similar credit.

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Bipartisan Measure Would Create a Pennsylvania Earned Income Tax Credit

Bradley Vasoli

Two Pennsylvania state Senators from opposite sides of the aisle are asking colleagues to support legislation they are drafting to create a state earned income tax credit (EITC). 

For nearly a half-century, lower-wage workers have benefitted from a federal EITC which ranges from $560 to $6,935 for a household earning up to $59,187, depending on the number of that filer’s qualifying children. In 2021, this program bestowed $1,874 on the average Pennsylvania family.

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Connecticut Lawmakers Clash on Tax Policy at Hearing

Bradley Vasoli

At a Connecticut General Assembly hearing Thursday, state lawmakers clashed on visions of tax policy, with Republicans pressing for sales-tax reduction and Democrats advocating a mix of tax increases and targeted relief.

According to the nonprofit Tax Foundation, 12.8 percent of Connecticut residents’ income goes to government coffers, making the combined state and local tax take the second-highest in the U.S., just behind New York’s 14.1 percent overall burden.

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State Senate Committee Votes to Expand Pennsylvania Education Tax Credits

Bradley Vasoli

Two popular school-choice programs for Pennsylvania students would get regular annual funding increases – expanding access to thousands of families – under legislation a state Senate committee approved yesterday.

Sen. Mike Regan’s (R-Dillsburg) bill would automatically raise allocations to the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) by 25 percent each year, provided at least 90 percent of obtainable scholarships have been utilized the year before. Regan estimated his funding rise would amount to $100 million more annually—about 0.3 percent of what the commonwealth spends on public education. His measure passed the Senate Education Committee by a party-line vote of seven to four and awaits a vote of the full chamber. 

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