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Report: Pennsylvania’s tax burden still a mixed bag

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Report: Pennsylvania’s tax burden still a mixed bag


(The Heart Sq.) – A comparability of tax ranges of the 50 states exhibits residents in Pennsylvania nonetheless pay greater than most different Individuals.

In a yearly comparability carried out by the Unbiased Fiscal Workplace, Pennsylvania is above-average with its tax burden.

The tax burden is completely different from general tax charges: it’s measured as a ratio of revenues collected by a tax to ranges of private earnings. The main target is on how a lot income a tax brings to the state, reasonably than the tax price set by the legislation.

When wanting on the state and native tax burden as a share of private earnings, the evaluation notes that Pennsylvania has the twenty first highest tax burden, representing a ten.08% ratio of taxes to earnings. Although that rating is decrease than New York, Delaware, New Jersey, Maryland and West Virginia, it’s larger than Ohio, together with most southern and western states.

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For particular taxes, Pennsylvania is a combined bag of above-average and below-average burdens. The commonwealth has the Twenty second-highest private earnings tax (2.57% tax-to-income ratio) and Sixteenth-highest company web earnings tax (a .53% ratio), however solely the Fortieth-highest gross sales and use tax (a 1.96% ratio).

“Pennsylvania depends on SUT comparatively lower than different states attributable to broad exemptions for many clothes and meals bought for dwelling consumption,” the report famous.

The state’s property tax burden can be barely beneath common, rating twenty seventh (a 2.66% ratio). For sin taxes – which embody playing, liquor, cigarettes, and associated taxes – Pennsylvania had the third highest burden (a .64% ratio), outpaced solely by West Virginia and Rhode Island.

“For states which have legalized on line casino gaming, Pennsylvania imposes a comparatively excessive tax price on slot (most tax price of 55%) and desk video games (16%) gross revenues,” the IFO report famous. These tax revenues go for property tax aid, but additionally subsidies to maintain horse racing alive within the state, as The Heart Sq. beforehand reported.

Motorized vehicle tax burdens had been additionally comparatively excessive at seventeenth within the nation (a .55% ratio).

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The significance of these taxes, nonetheless, varies. The most important income supply for state and native governments in Pennsylvania was property taxes (about 26%), adopted by the private earnings tax (25%), gross sales and use taxes (19%), then sin (6%) and motorized vehicle (5.5%) taxes.





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Pennsylvania

Pennsylvania’s Game-Changing Rail Freight Revamp Is Here—East Penn Railroad Leads the Charge – MyChesCo

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Pennsylvania’s Game-Changing Rail Freight Revamp Is Here—East Penn Railroad Leads the Charge – MyChesCo


HARRISBURG, PA — Rail freight in Pennsylvania is on the brink of transformation, with $55 million approved to fund 30 vital improvement projects. These initiatives promise to boost economic development, enhance freight mobility, and create or sustain 344 jobs across the state. Among the standout ventures, East Penn Railroad, LLC’s $455,000 project to rehabilitate eight bridges is poised to deliver significant benefits to Chester, Montgomery, Berks, and York Counties.

Strengthening Pennsylvania’s Freight Backbone

With 65 operating railroads spanning approximately 5,600 miles, Pennsylvania’s freight system is unmatched in its scale and importance. It is the backbone of the state’s economy, connecting local industries to national and global markets. The Pennsylvania Department of Transportation (PennDOT), in collaboration with private rail operators and local businesses, has prioritized modernization through programs like the Rail Transportation Assistance Program (RTAP) and Rail Freight Assistance Program (RFAP).

“Expanding and improving Pennsylvania’s rail freight network will support family-sustaining jobs and connect Pennsylvania communities to the global economy while bolstering local economic development,” said PennDOT Secretary Mike Carroll. “These investments will create opportunities for generations of Pennsylvanians to come and will provide key mobility across the Commonwealth.”

Spotlight on East Penn Railroad

The East Penn Railroad project exemplifies the power of targeted infrastructure investment. The company will rehabilitate eight bridges across the Octoraro, Perkiomen, Lancaster Northern, and York branch lines—critical routes for businesses and industries in Chester, Montgomery, Berks, and York Counties. These bridges are essential for the safe and efficient transportation of goods, and their rehabilitation will ensure that local businesses have the reliable infrastructure they need to thrive.

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The funding will address aging infrastructure that has long hampered performance and safety. Once complete, these improvements will facilitate smoother operations, reduced delays, and greater capacity for freight transport. For local communities, this means more robust economic growth driven by increased business activity and better connections to other markets.

Building a Better Freight Future

East Penn’s effort is just one of 30 projects approved for funding, each addressing specific challenges within Pennsylvania’s rail network.

Some of the other key projects include:

  • CSX Transportation, Inc. ($13.1M) to rehabilitate the 25th Street Viaduct in Philadelphia, a crucial freight artery.
  • Wheeling and Lake Erie Railway ($5.8M) to improve six bridges across Allegheny, Washington, Fayette, and Westmoreland Counties, ensuring long-term safety and reliability.
  • NorthPoint Development, LLC ($3.8M) for Kinder Morgan terminal rail yard expansion in Bucks County, adding over 13,000 feet of new track to boost industrial capacity.

Each of these initiatives will address bottlenecks, improve efficiency, and position Pennsylvania as a leader in freight innovation.

Why It Matters

Improving freight infrastructure isn’t just a convenience—it’s an economic imperative. For businesses, reliable rail transport lowers costs, increases efficiency, and enhances competitiveness in global markets. For workers, these projects create good-paying jobs during construction and unlock new opportunities for long-term employment in logistics and adjacent industries.

East Penn Railroad’s project, in particular, underscores how smart infrastructure investment can ripple outward. By ensuring that critical bridges are safe and reliable, the company will help make Chester, Montgomery, Berks, and York Counties more competitive while bolstering the local economy.

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Beyond the immediate economic benefits, these rail freight improvements also align with environmental goals. Rail transport is significantly more fuel-efficient than road freight, resulting in reduced greenhouse gas emissions. By expanding and modernizing Pennsylvania’s rail system, these projects signal a commitment to sustainable growth.

A Commitment to Progress

The Shapiro Administration and the General Assembly have demonstrated a shared commitment to infrastructure as a foundation for progress. Pennsylvania’s rail freight industry isn’t just about moving goods; it’s about creating a future where communities and businesses can flourish.

Pennsylvania’s bold leap forward on rail freight projects marks a turning point for the state. With East Penn Railroad paving the way, the Commonwealth is creating a more connected, competitive, and sustainable future for all.

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.



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A Pa. utility shutoff law is expiring. Here’s what you need to know

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A Pa. utility shutoff law is expiring. Here’s what you need to know


Have a question about Philly’s neighborhoods or the systems that shape them? PlanPhilly reporters want to hear from you! Ask us a question or send us a story idea you think we should cover.

A Pennsylvania law that lays out how and when utility companies can shut off customers’ electricity, gas or water expires Dec. 31.

But the state’s ban on shutoffs for low-income customers during the winter months and other protections will continue uninterrupted.

“The message that we’ve been hoping that people really hear is not to panic,” said Elizabeth Marx, executive director of the Pennsylvania Utility Law Project.

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Utility shutoffs are an experience many Pennsylvania households deal with. In the first 10 months of 2024, utilities in the state disconnected more than 300,000 households and reconnected fewer than three-quarters of them.

In Philadelphia, one in four low-income households spends at least 16% of its income on energy bills — an energy burden that’s considered severe. Black and Hispanic households in Philadelphia spend more of their income on energy than households overall, and national surveys have shown non-Hispanic Black and Hispanic households are disconnected from utility service at higher rates than non-Hispanic white households.

Here’s what you need to know about the sunsetting statute. 

Pa.’s ban on shutoffs for low-income customers during the winter continues

Pennsylvania’s winter shutoff moratorium will continue even after the law expires, because this and other protections are duplicated in another part of state code.

Between the frigid months of December through March, public utilities in Pennsylvania are restricted from terminating low-income customers’ service for nonpayment without permission from the Public Utility Commission.

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Water utilities cannot terminate heat-related service during this time period.

Gas and electric utilities cannot terminate service for households earning below $3,137 monthly for an individual or $6,500 for a family of four, based on the 2024 federal poverty guidelines.

“We understand the importance of these protections to Pennsylvanians and remain committed to balancing the needs of consumers and utilities,” said Stephen DeFrank, Pennsylvania Public Utility Commission chairman, in a statement.

There is a partial exception for city gas utilities, which can terminate service for households earning $1,882 to $3,137 monthly for an individual or $3,900 to $6,500 for a family of four, during part of the winter under certain circumstances.

If you can’t pay your utility bills in full, Marx recommends making at least some payment, because utilities consider a positive payment history when setting up payment plans.

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“Paying what you can, when you can, is very important, especially even through the winter, when the winter moratorium is in place,” she said.



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Ice-cold temperatures overnight, Impact Day Sunday

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Ice-cold temperatures overnight, Impact Day Sunday


Bitter cold weather has been the theme throughout the evening into tonight. Breezy winds will produce wind chill values in the teens overnight, then single digits to teens for our Sunday, prompting an Impact Day. Find out when we may have a chance at warming back up next week in the full forecast.



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