Tax amnesty sends mixed message

Pennsylvania is hoping that another tax amnesty can help boost revenues for the coming fiscal year.
The program runs from April 26th through June 18th. It’s for people who haven’t been paying their state taxes, and want a chance to come clean with fewer penalties. But tax amnesty does have its critics.

Pennsylvania is hoping that another tax amnesty can help boost revenues for the coming fiscal year.

The program runs from April 26th through June 18th. It’s for people who haven’t been paying their state taxes, and want a chance to come clean with fewer penalties. But tax amnesty does have its critics.

Meggan Kole has more

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While there is no question that tax amnesties work, New Jersey raised over $700 million last year, there is concern about what the take away message is.

Kail Padgitt is with The Tax Foundation in  Washington D.C. He says despite their growing popularity, tax forgiveness programs hurt tax collection in the long run.

Padgitt: It essential is rewarding people that have not paid their taxes and have been out of compliance. So really what it does is it provides and perverse incentive to not pay your taxes.

The Department of Revenue says they expect to collect $190-million in unpaid taxes.