
10,000 Friends Supports Bill to Modernize Earned Income Tax Collection
10,000 Friends of Pennsylvania supports
Senate Bill 1063. The initiative, introduced by Sen. Jane Earll, which amends the Local Tax Enabling Act by consolidating earned income tax (EIT) collection congruent with counties, is a positive step toward modernizing the structure of collecting local income tax, and more importantly, a key opportunity to support improved collaboration and help reduce the fiscal distress that plagues many of our local governments.
As of March 11, 2008, the bill is under consideration by the Senate Appropriations Committee.
CLICK HERE to read the letter to the committee from Board Chairman Eric Menzer and President Judy Schwank. In it, they note: “Reducing the number of EIT collectors from more than 560 collectors for almost 2,900 jurisdictions to 66 collection districts will indeed bring uniformity, clarity and fairness to local income tax collection. Further, as studies indicate, the lack of collection and losses in the current distribution process have resulted in uncollected or unremitted taxes estimated to be as much as $237 million, or the equivalent of 3,000 police officers and 3,000 teachers. Simply put, your yes vote is cost-effective public policy.”
For 10,000 Friends’ two-page brief, please click here.
For more information on the state Department of Community and Economic Development’s EIT Collection Reform Initiative, click here.