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ITEP’s Kamolika Das Testifies on Pennsylvania’s Upside-Down Tax Code

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ITEP’s Kamolika Das Testifies on Pennsylvania’s Upside-Down Tax Code


Below is written testimony delivered by ITEP Local Policy Director Kamolika Das before the Pennsylvania House Finance Subcommittee on Tax Modernization & Reform on March 1, 2024.

Good afternoon and thank you for this opportunity to testify. My name is Kamolika Das, I live in South Philly, and I’m the Local Tax Policy Director at the Institute on Taxation and Economic Policy or ITEP. ITEP is a non-profit, non-partisan tax policy organization. ITEP recently updated our flagship report, Who Pays?, which analyzes the distribution of state and local taxes across the income scale in all 50 states and D.C. This is the 7th edition of the study and the most thorough version yet. It covers 99.7% of all state and local taxes, including the most minute taxes like Pennsylvania’s fireworks tax and dry-cleaning tax.

Our research finds that across the US, low- and middle-income families pay higher tax rates than the wealthy on state and local taxes. Nationwide households making under $24,000 a year pay 11 percent of their income on state and local taxes while the top 1%, households making over $730,000 a year, pay 7 percent.

Definitions of what constitutes tax equity or tax justice differ. Some people argue for flat taxes, where everyone pays the same portion of their income on taxes. Of course, this leaves lower-income people with far less income after paying for basic necessities. Others believe the rich should pay more because they have a higher ability to pay and because they owe some of their good fortune to the public services and social stability that government provides. Regardless of your definition, most tax systems, including Pennsylvania’s, are not fair or equitable. In fact, Pennsylvania’s regressivity far exceeds that of the national average. In Pennsylvania, the lowest 20 percent of earners pay an effective tax rate 2.5x higher as a share of income than the top 1 percent. So Pennsylvania ranks the 4th most regressive tax system in the nation according to ITEP’’s Tax Inequality Index.

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A common thread that we’ve identified in regressive tax systems is that state and local governments are heavily reliant upon regressive taxes on what people buy, or on their homes that they own or rent. Sales taxes inevitably require a larger share of income from low- and middle-income families than from wealthier families because sales taxes are levied at a flat rate and spending as a share of income falls as income rises. Since high earners can save a much larger share of their incomes than middle-income families—and since the poor can rarely save at all—the tax is inherently regressive. Same with housing since home values as a share of income tend to decline at higher incomes.

Often, when people think about state and local taxes, they solely focus on income taxes, but income taxes do not exist in isolation. This leads to the deep misconception that flat income taxes result in an overall flat tax structure. But in reality, given the fact that sales taxes and property taxes are both regressive, states need offsetting structures like graduated income tax rates to create an overall flat structure and satisfy the minimum standard of tax fairness.

Many states that are commonly perceived as “low tax” are often high tax for low-income families. ITEP analyzed flat tax states and graduated income tax states empirically and on average, low- and middle-income households pay lower rates in graduated income tax states. This is commonsense since flat tax states are not raising as much from the wealthy so they have to rely more heavily on everyone else. For example, households making $30,000 to $80,000 actually pay higher effective tax rates on all state and local taxes in Pennsylvania than they do in New Jersey.

Pennsylvania’s regressive taxes also makes it more difficult to invest in shared priorities like addressing the state’s inexcusable education opportunity gaps. Progressive taxation is positively correlated with higher overall tax revenue levels relative to the size of each state’s economy; taxing high-income families at lower rates will inevitably constrain revenue collections. While Pennsylvania’s wealthiest residents grew their collective wealth during the pandemic, the percent of families who are unable to afford the basics of housing, childcare, food, transportation, health care, and technology grew by 2 percentage points.

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Tax policy is one tool to help reduce this inequality. If you look at the jurisdictions with the least regressive state and local tax systems (DC, Minnesota, Vermont, New York, New Jersey, Maine, and California) there are several common factors: graduated marginal income tax rates; targeted, refundable low-income credits; broad-based income taxes with limits on tax preferences for upper-income taxpayers; a higher reliance on taxes that take ability to pay into account; and a lower reliance on taxes on consumption.

Several states have made strides in lessening tax regressivity in the past few years.

New Mexico advanced 18 spots in our latest edition of Who Pays? by enacting a new state Child Tax Credit, a larger Earned Income Tax Credit for low-wage workers, a cut to the Gross Receipts Tax rate charged on the things New Mexicans buy every day, and a higher top income tax rate on the state’s wealthiest families. Washington state is no longer the single most regressive tax jurisdiction due to their recent enactment of a new tax on capital gains and the creation of a tax credit, similar to an EITC, for low- and moderate-income families. And Massachusetts voters dismantled their flat tax in November 2022 by adopting a constitutional amendment to impose a surtax on millionaires.

These decisions also have dramatic impacts on education funding. Massachusetts’ Fair Share Amendment is expected to raise more than $2 billion in revenue each year for public education and transportation infrastructure. This benefits the public, of course, but this is also a pro-business move since inadequate education and infrastructure revenues hurt economic growth. And just as a reminder, Pennsylvania policymakers in 2022 chose to cut the corporate income tax rate in half over eight years, with the cut not taking full effect until 2031. As a result, the cost will balloon from $127 million in 2023 to nearly $1.5 billion in 2031.

I realize that flat rate tax structures are enshrined in the state constitutions of Pennsylvania, Colorado, Illinois, and Michigan, therefore limiting the shovel-ready policy options available to this set of states. However, even within those limitations, lawmakers can take immediate steps to reduce the regressivity of Pennsylvania’s state and local tax system. Thank you and I’m happy to answer any questions.

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Measles detected in two more counties in Pennsylvania as health department recommends early vaccination

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Measles detected in two more counties in Pennsylvania as health department recommends early vaccination


Pennsylvania health officials have now detected measles cases in York and Northumberland Counties as cases in Lancaster County, the center of an ongoing outbreak, continued to rise.

And the state health department is now recommending early measles vaccinations for infants beginning at 6 months in affected areas in an effort to protect them against the spread of the highly contagious disease, which is particularly risky for young children. The same precautions should be taken by families with infants traveling to these areas.

Six Pennsylvania counties have now seen measles cases since an outbreak was first confirmed in Lebanon County in April. In all, the state has reported 81 measles cases across eight counties in 2026, more than five times the cases reported in 2025.

State health officials said it was too early to tell how the latest cases in York and Northumberland Counties are connected to others in the region, but that contact tracing investigations are continuing. All cases were among people who had not received at least two doses of the measles, mumps, and rubella (MMR) or whose vaccination status was unclear.

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As of Wednesday, six cases had been confirmed in Northumberland County, to the north of Dauphin County, and one case had been detected in York County, along Lancaster’s western border.

Lebanon County has reported 20 cases and Dauphin and Berks Counties have reported two cases each.

Lancaster County has seen 38 cases of measles since late April, with health officials confirming seven cases in the last two weeks. The area was at the center of a prior measles outbreak in January, when state health officials confirmed eight cases in Lancaster County and an additional four between Chester and Montgomery Counties.

Vaccination rates among kindergarteners have decreased across Pennsylvania in recent years, and some counties affected in the current outbreak have particularly low rates, including Lancaster, where about 88.5% of kindergarten students are vaccinated. Health experts say that 95% of a community must be vaccinated to prevent the spread of the disease.

Health officials have been conducting contact tracing to detect as many cases as possible. In the current outbreak, they have twice warned Lancaster residents that they could have been exposed to measles.

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Shoppers and employees at a local Kohl’s were potentially exposed to the virus over four days after a staffer tested positive in late May, LancasterOnline reported. And a person with measles visited the Lancaster County Courthouse on June 3.

But doctors in Lancaster County say they fear some measles cases are going unreported, either because patients don’t understand the importance of tracking measles cases or because they fear repercussions.

No cases have been confirmed in the Philadelphia region during this outbreak. But Delaware County health officials said last week that they had detected measles in two wastewater samples, indicating that someone with measles had used a bathroom connected to the county’s public water supply. It was unclear if that person lived in the county or was passing through.

Early vaccination recommended

On Wednesday, a statewide health alert urged physicians to accelerate vaccination schedules to protect children against measles. Officials had said they were considering the measure earlier this month as cases continued to rise.

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Measles can infect nine in 10 unvaccinated people who are exposed to it, and can linger in the air for up to two hours and incubate in patients for three weeks. The disease typically presents with a fever and a rash but can cause brain inflammation and pneumonia in serious cases.

Typically, children receive the first of two MMR vaccines at 1 year old, then a second between 4 and 6 years old.

But children as young as 6 months can receive an additional “dose zero” to protect them from the disease amid an outbreak. In its alert, the state health department said parents should vaccinate infants between 6 and 11 months with the “dose zero” if they live in affected areas or if they’re planning to travel there.

Those children should then receive additional MMR doses at 12 to 15 months and 4 to 6 years.

This “dose zero” is less effective than doses given at 1 year old, officials cautioned. But it’s 58% effective against measles when given at 6 to 8 months, and 83% effective when administered at 9 to 11 months.

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“Early MMR vaccination is safe and provides modest protection when measles is spreading,” officials wrote in the alert.

Children older than 12 months who haven’t been vaccinated should get an MMR dose immediately, and a second 28 days later, health officials said. Unvaccinated adults, or those without evidence of immunity, should also get two MMR doses.

And anyone who has received one dose of the MMR vaccine in the past should get a second at least 28 days after their first, officials said.

Usually, children who received a first dose at around 12 months wait to get their second dose until they’re 4 to 6 years old. But in an outbreak situation, those children should get their second doses early — at least 28 days after their first shot.

Adults born before 1957 are typically considered immune, but healthcare workers in that age group who don’t have lab evidence of immunity or prior infection should consider getting vaccinated, state officials said.

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Adults who received an inactivated measles vaccine between 1963 and 1967 are considered unvaccinated during an outbreak, and should also get two doses of the current MMR vaccine.

Pregnant people, people with severely weakened immune systems, and people who have a history of experiencing severe allergic reactions, like anaphylaxis, to a vaccine ingredient or to a previous dose of MMR cannot receive the vaccine.



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The Dish: Caesar salad with a twist from Rivertown Taps in Phoenixville, Pa.

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The Dish: Caesar salad with a twist from Rivertown Taps in Phoenixville, Pa.


PHOENIXVILLE, Pa. (WPVI) — We are heading to Rivertown Taps in historic Phoenixville, Pennsylvania, to make a classic fan favorite, Caesar salad.

And when they say “taps,” they mean it.

There are dozens of drinks, beer and beyond, on tap at Phoenixville’s first self-serve drink tap wall.

“Phoenixville has always been a very beer-centric town, and we’re beer-centric people, so we wanted to have a really curated selection,” says Chef Owner Lewis Leiterman. “We have 36 drinks on tap.”

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Just grab a charge card, choose your glassware and choose your own adventure.

“You pay for whatever you pour by the ounce,” says Leiterman. “You can pour as much or as little as you like.”

The building dates back to the 1800s, and Leiterman made sure to preserve pieces of that history, while bringing something super fresh to the strip.

“We make pastas from scratch,” he says. “We extrude all of our own pastas in house. We do all of our fresh-filled pastas all by hand. We make all our own breads. Everything that’s in here is from scratch.”

The mission includes a commitment to locally sourced food.

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Today, we’re making a house favorite: the Caesar salad – with a twist.

“I hate chasing croutons around a salad, like, the fork never kind of sticks into it,” says Leiterman. “We still wanted that crunch factor, like the classic crouton, but different. What we did was we took some of our old bread and we kind of toasted it up and made a coarse panko texture.”

It’s becomes a universal crouton that makes its way throughout the salad.

“We like to feature seasonal vegetables in our Caesar salad, just for a little bit more flavor and nutrition,” says Leiterman.

He grills up some nice asparagus, and then adds some protein.

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“I love a soft boiled egg on a salad to add more sustenance to a salad and a little bit of heartiness to it,” he says.

The build starts with a mix of greens, like red romaine and red watercress.

The dressing gets a gourmet kick.

“We do a black garlic and truffle Caesar,” he says. “We don’t like to overdress it. My pet peeve is those thick Caesar dressings.”

Add the asparagus to gently warm the salad, shave on some Parmigiano Reggiano cheese, add the soft boiled egg and finally, the breadcrumbs.

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Pa. sees growth in over-65 residents, but overall population stagnates

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Pa. sees growth in over-65 residents, but overall population stagnates


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Pennsylvania’s over-65 population is growing faster than any other age group in the commonwealth, now making up more than one-fifth of the state’s residents, according to new U.S. Census Bureau data. 

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The federal agency estimates about 2.8 million Keystone State residents are 65 or older, an increase of about 13% since the last nationwide census was published in 2020. 

Overall, the state’s population has remained stagnant at about 13 million since the last census. And many age groups — including children and younger adults — have actually declined in number over the past five years, according to the estimates released June 25. 

The median age for a Pennsylvanian is now 41.4, compared to 41 in 2020.

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How does Pa. compare to the rest of the U.S.?

Pennsylvania’s increase in older adults matches national trends, as the number of people 65 and older grew by about 9 million across the U.S. since 2020, the estimates suggest. As in the Keystone State, the population of people younger than 18 has fallen over the past several years, as did the number of people in midlife.

Overall, the nation’s population has climbed by an estimated 3.1%, or about 10.3 million people, since 2020.

However, Southern states showed more rapid growth that spanned all age categories, according to the U.S. Census Bureau.

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“The South stands out because it is seeing population gains in age groups that in other regions saw little change or are declining, reflecting its strong positive migration patterns this decade,” Lauren Bowers, a Census Bureau official, said in a statement.

What does the aging trend mean for Pa.?

Policymakers are working to prepare for Pennsylvania’s continued graying and the needs that will come along with these demographic shifts. By 2030, one in three commonwealth residents are projected to be over age 60, according to state officials.

But advocates stress the need for more resources to support Keystone State residents as they age, pointing to caregiver shortages and barriers to healthcare access in rural areas.

Gov. Josh Shapiro’s administration in 2024 released a 10-year plan for getting the state ready, laying out strategies for supporting people who want to age at home, expanding transportation options and increasing the number of caregivers.

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Bethany Rodgers is a USA TODAY Network Pennsylvania investigative journalist focusing on health and education.



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