FOR IMMEDIATE RELEASE
March 5, 2026
CONTACT:
Kirstin Snow, Communications Director, snow@pennpolicy.org
RELEASE: Pennsylvania Policy Center Unveils Three Policy Briefs Detailing Path to Affordability For Our Common Wealth
New analysis highlights raising wages, fair taxation, and tax credits for working families as key solutions
HARRISBURG, PA — As Pennsylvania lawmakers begin negotiations over the state budget and confront growing fiscal pressures, the Pennsylvania Policy Center released three new policy briefs that detail a path to affordability for working families across the Commonwealth.
The briefs examine three key policy tools that can help strengthen household budgets while putting the Commonwealth on more stable fiscal footing:
- Raising wages so every worker earns a living wage
- Modernizing the tax code so the wealthiest households and large corporations pay their fair share
- Investing in working families through targeted tax credits
Together, the briefs form part of Pennsylvanians Together: For Our Common Wealth, a statewide campaign advancing tax fairness and economic security across Pennsylvania.
“At a moment when families are facing rising costs and the Commonwealth is confronting serious fiscal pressures, policymakers need solutions that strengthen household budgets while building sustainable public revenue,” said Felicity A. Williams, Executive Director of the Pennsylvania Policy Center. “These policy briefs show that Pennsylvania has the tools to do both.”
POLICY BRIEF HIGHLIGHTS
1. What You Need to Know About the Minimum Wage in PA examines the impact of raising the state minimum wage to a $15 minimum wage per hour and why Pennsylvania must move toward a living wage for all workers. Pennsylvania’s minimum wage remains $7.25 per hour, the federal minimum and the lowest of every surrounding state. A $15 minimum wage would raise pay for over 865,000 workers across the Commonwealth and help families keep up with the rising cost of living. Our report finds the workers who would benefit most are
- not primarily teenagers: About 81% of affected workers are over age 20, meaning nearly 700,000 adult workers would receive a raise.
- disproportionately women: Women make up 61% of affected workers.
- disproportionately workers of color: Workers of color represent 34% of affected workers, including about 135,000 Black workers and about 111,000 Hispanic workers.
- working parents: More than 178,000 affected workers are parents of children under 18, including about 102,000 single parents.
While a $15 minimum wage would be a critical step, the brief notes that Pennsylvania must continue working toward a true living wage that reflects the real cost of housing, child care, health care, and other essentials.
2. Pennsylvania’s Untapped Wealth examines how the Commonwealth’s tax structure favors the wealthiest households and large corporations through tax giveaways, while asking substantially more from working families.
Pennsylvania has more multimillionaires and billionaires than both Massachusetts and Washington, yet taxes high-income households less. Despite the tax giveaways for our wealthiest Pennsylvanians, Pennsylvania sees slower growth of wealthy households than both states.
Our report debunks the myth that taxation drives millionaires and wealthy companies away. From 2010 to 2024, millionaire growth was
- 300% in Washington.
- 188% in Massachusetts.
- just 176% in Pennsylvania.
At the same time,
- Massachusetts adopted a 4% surtax on incomes above $1 million.
- Washington implemented a capital gains tax on high-end investment income.
- Pennsylvania kept a flat 3.07% income tax with no add-on for very high incomes.
The brief highlights how adopting policies such as a Fair Share Tax could generate sustainable revenue while ensuring that multimillionaires and billionaires contribute proportionately to the public investments that make Pennsylvania’s economy possible.
3. Working Pennsylvanians Tax Credit: Strengthening Household Budgets in the 2026–27 Pennsylvania Budget examines the new Working Pennsylvanians Tax Credit (WPTC).
The Working Pennsylvanians Tax Credit (WPTC) is Pennsylvania’s first refundable state earned income tax credit. It was enacted in the 2025–26 state budget and long championed by Representative Christina Sappey (HD 158) and advocates including the Pennsylvania Policy Center. The WPTC
- is equal to 10% of the federal earned income tax credit.
- provides up to $805 for eligible, low-to-moderate-income working individuals and families starting this tax season.
- is fully refundable, meaning families can receive money back even if they owe little or no state income tax.
In 2023, approximately 802,000 Pennsylvania households received the federal EITC, totaling more than $2 billion in benefits. If state participation mirrors federal uptake, the WPTC could deliver approximately $200 million annually back to working families across the Commonwealth.
However, the brief notes that Pennsylvania’s credit remains smaller than many other state EITCs. More than 30 states offer state-level EITCs, with many providing 20% to 40% of the federal credit. By comparison, Pennsylvania’s credit currently sits at 10%.
WHY THIS MATTERS
Pennsylvania’s policy choices come at a pivotal moment for the Commonwealth’s finances and for working families. The state faces a structural budget deficit, and policymakers are exhausting the Rainy Day Fund to balance budgets. At the same time, federal budget cuts and policy decisions are shifting costs onto states and onto everyday families, placing additional pressure on already constrained state budgets. Without new and sustainable revenue solutions, these pressures will only intensify.
“As lawmakers debate the state budget, the question is not whether Pennsylvania has the resources to support working families,” said Williams. “The question is whether we will build a tax system that raises revenue fairly or continue a system that prioritizes tax giveaways to multimillionaires, billionaires, and large corporations.”
These briefs provide Pennsylvanians with credible analysis, legislative updates, and expert perspectives on how budget and policy decisions may affect working families in the Commonwealth and across the country. They also provide a clear path to action—beginning with joining Pennsylvanians Together: For Our Common Wealth, a campaign working to advance tax fairness and economic security across the Commonwealth.
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