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¶ … Tax Analysis
In Pennsylvania taxation is a huge issue, much like in the rest of the United States. Warring factions on either side of the political agenda work to either raise or cut taxes within a given year. In times of economic crisis, such as is occurring in the United States at the present has forced citizens and government officials to reexamine taxation practices in the hopes of overturning the depression. In additional to federal taxes, businesses and individuals of the U.S. are required to pay taxes to the state and to their local communities (Financing page 458). State taxation can be extraordinarily high. It has been proven that many states have higher corporate tax rates than several countries of the world. When comparing Pennsylvania to other states in the country, it becomes apparent that the current tax rate is exorbitant and putting a great deal of pressure both on individual members of the citizenry and businesses within the state.
Pennsylvania is rated as the second-highest ranked state in the country in terms of adjusted, combined federal and states rates. According to the Tax Foundation (2009), citizens of Pennsylvania are required to pay a flat tax rate of 3.07%. Since 1978, Pennsylvania has ranked higher than the nation's average in terms of burden. Additionally, property taxes in the state of Pennsylvania are higher than the national average even though income is proportionately lower in this location than in other parts of the United States. This is all to do with the tax rate, which is heavily influenced by the process of supply and demand (Financing page 462).
In the state of Pennsylvania, there are four main types of taxes which affect the lives of its citizens: income, property, sales and use tax, and inheritance and estate taxes (Financing 472). There are also more modest taxes which affect the lives of the individual, but are less worrisome to businesses in the commonwealth.
Works Cited:
"Financing Government Expenditures."
"The Tax Foundation: Pennsylvania." (2009). Retrieved from http://www.taxfoundation.org/taxdata/show/477.html
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