Given our Governor’s promise of not raising taxes, any bills
developed by House and Senate committees in Pennsylvania are going to have to
conform to this policy for as long as Corbett is in office. Because of this ‘mandate,’ some ideas are
surfacing in proposed tax-code bills that are gaining support that need to be
examined by the public eye sooner than later.
One such bill is the proposed HB 1776, which would grant
extended taxing authority to municipalities and school districts to help stop-gap
budget shortfalls by the Commonwealth’s cuts in education and
county-administered care funding. These
additional taxes could be an additional 1% sales tax, higher Earned Income Tax
or hikes in the flat taxes charged.
This proposed bill will create a situation where residents
in some school districts will be paying more regressive taxes than our most
taxed states in the country. An example
would be someone who patronizes the shopping districts in Whitehall and South
Whitehall, yet lives in Northern Lehigh or Northampton School districts. These mentioned school districts would be
forced to consider levying an earned income tax or raise a flat tax over an
additional 1% sales tax due to a much smaller retail base. These residents would then pay more taxes at
home, and have to fork out an additional higher sales tax at nearby
merchants. Add to the fact that
Pennsylvania charges the 6th highest gasoline tax and 2nd
highest Diesel tax amounts in the nation, and if these local sales taxes are
instituted, we are now looking more like California, or Connecticut.
Above all, I strongly feel that we will never see a reduction in property taxes, either. Several companies and individuals earn their living on working with property taxes, and would fight to see them removed totally.
We have three very viable and growing potential income
streams that can solve a lot of the issues of funding. When partnered with a solid, smart spending
plan, income from gaming, the lottery and Marcellus Shale gas can keep our
budgets balanced. Our legislators need
to focus on a per-unit tax for all gas that leaves our state. Our lottery needs to benefit more than just
older Pennsylvanians. South Carolina’s
lottery is for education funding… why can’t Pennsylvania do the same? And where is the gaming funding going? We need to get those funds to districts to
help alleviate property tax increases.