Pennsylvania has the sixth most regressive taxes in the nation.

[DebJ]

https://pennbpc.org/who-pays-pas-tax-system-grows-more-regressive-low-income-pay-highest-share-income-taxes

Middle-income Pennsylvanians pay two times more in taxes as a share of income than the wealthiest earners, and the lowest-income earners pay three times more, the study found. Pennsylvanians in the top 1 percent of income actually saw a slight drop in the share of income they pay in taxes, from 4.4 percent in 2013 to 4.2 percent in 2015.

The fifth edition of the report Who Pays?: A Distributional Analysis of the Tax Systems in All Fifty States places Pennsylvania on the “Terrible 10” list of states with the most regressive tax systems for the fifth time, and lowers its rank from eighth worst in the nation two years ago to sixth worst now. The report factored in all major state and local taxes, including personal and corporate income taxes, property taxes, sales taxes, and other excise taxes paid by non-elderly residents. Washington State is the most regressive, followed by Florida, Texas, South Dakota, Illinois, Pennsylvania, Tennessee, Arizona, Kansas and Indiana.


Key Pennsylvania findings include:

Families earning less than $20,000 annually, the poorest fifth, pay 12 percent of income in state and local taxes, almost three times the share of the top 1 percent.

Middle-income taxpayers earning between $38,000 and $60,000 annually pay 10.3 percent of income in taxes, up from 10.1 percent in 2013.

The richest 1 percent of taxpayers, with incomes averaging $1,241,600 annually, pay 4.2 percent of income in taxes, less than in 2013.

The top 1 percent’s income grew four times as much since 2013 as the middle group’s income, 16.4 percent vs. 4.1 percent in non-inflation adjusted dollars.

[Suich]

1. "We're Number 1!"

"We're Number 1!"

Yeah...high five.

[femmocrat]

2. They don't even mention fees.

I recently read that all the fees for drivers' licenses, registration, etc. are going up again. And the turnpike just raised their tolls, again.

No wonder we are known as "Tax-sylvania" !!

[yeoman6987]

3. Your right. At least everyone pays the same

With fees and tolls. The rich don't get breaks on those.

[Curmudgeoness]

5. But the thing is

that as a percent of income, the tolls and registrations and other fees are much more of a burden on the poor. The cost for registration of a car is pocket money for the wealthy, and is a big deal for those who are making little money.

[Freddie]

4. Gov. Wolf wants to make the wage tax progressive

But it's in the f*cking state constitution that it has to be a flat tax! The only thing he can do is raise the % and institute a series of rebates for lower and middle income earners. With our heavily Repug state legislature, good luck with that.

[DebJ]

7. Yes this state is sooooo screwed up. North to south, east to west.

I miss Maryland.

[Curmudgeoness]

6. Don't I know it!

My sister had been living in Texas and was looking to move back here. After looking at the tax situation in PA, she decided not to do it. Too bad, I would have loved to have had her closer.

I have questions about how they were able to come up with these numbers, but I don't want to read all the links to try to find the answers. I know, I'm lazy. But since so few people who are in the $20,000 range can afford to own a home, how are they factoring property taxes for them? Are they basing it on what the taxes are for the places where they would be renting?

And how can the top 1 percent be paying so little? All income is taxed at 3.07% for the PA income tax, no matter what you make or where the income comes from. And they would have much higher property taxes, as well as sales taxes for all the things that they buy, and I would assume that they would be buying a lot more goods. So how do they get away with paying only a little over 1% more of their income in all the other taxes?

Whenever things are just not equal, I am always curious as to how statisticians make them equal for these purposes.

[Freddie]

8. Pretty sure that 3.07% is a wage tax only

Investments etc. are not taxed the same if at all (pretty sure) so the only people who are really taxed are us working stiffs.

[Curmudgeoness]

9. No, that isn't it.

I have interest and some dividend income, and it is all taxed...at least at the state level. My city income tax is just earned income though, and that is another 2.5%....so there is that.

Also capital gains from selling stocks, etc. are taxable.....and losses are not allowed to be claimed.

[DebJ]

11. I have read many times that businesses who incorporate out of state pay no income tax at all.

So you incorporate yourself, and pay no tax.

[JPZenger]

10. Dems tried to make income tax progressive in 70s - thown out in court

During the Shapp administration, Dems passed a reform of state income taxes to try to make them more progressive. The courts overturned it, based upon the State Constitution.

PA. is surrounded on most sides by states with much higher state income taxes on upper income persons. This does have one side effect - some upper middle income well-educated people choose to live on the PA. side of the border, even if they work in another state. All of PA's population growth has been in counties that are near the borders with NY, NJ, Md and Delaware.

The really rich people all pretend that their main residence is in a state without any state income tax, such as Florida. At one point, NY State was getting courts to order release of credit card bills so the state could show that rich folks were really spending most of their year in NY State instead of Florida.