Recent Posts

A Close Look at the New Radical Muslim Agenda in America

                American Liberty Report Have you heard? Congress has more women serving right now than ever before! Apparently, that’s because America is ...

Read More

Image credit: Wikimedia Commons | CC BY 2.0

AOC's Green New Deal Is a U.S. Version of Mao’s Disastrous Great Leap Forward

Support for this proposal demonstrates a profound ignorance of even basic economic concepts. Image credit: Wikimedia Commons | CC BY 2.0 By ...

Read More

Trump’s Agenda Is a Winning Formula for Black America

By Star Parker                                                         @ The Daily Signal My fellow Americans. Given that the Democratic Party chose to select a recently defeated political candidate ...

Read More

Why Affordable Housing Is So Hard to Find in America’s Big Cities

To make housing affordable, policymakers need to remove the things that are making it unaffordable now: excessive regulations. By John Phelan                ...

Read More

Green Is the New Red – From Capitalism to Socialism

By Stephen Moore | cnsnews WASHINGTON, DC - FEBRUARY 07: U.S. Rep. Alexandria Ocasio-Cortez (D-NY) speaks as Sen. Ed Markey (D-MA) (R) and ...

Read More

Green New Deal More Proof Left Intends to ‘Fundamentally Transform’ US

Cal Thomas / @CalThomas / The Daily Signal Rep. Alexandria Ocasio-Cortez's, D-N.Y., Green New Deal is just one example of how once-extreme ideas ...

Read More

What Alexandria Ocasio-Cortez Could Learn from G.K. Chesterton

Once in power, democratic socialists cease to be democratic.   By Chuck Chalberg                                            @fee.org G. K. Chesterton (1874-1936) and H. L. Mencken (1880-1956) ...

Read More

Democrats Release Green New Deal. Here’s What’s in It.

By Michael Bastasch                                       of The Daily Signal New York Rep. Alexandria Ocasio-Cortez released a resolution that outlines the “Green New Deal” ...

Read More

There’s Nothing New About the Green New Deal

Jarrett Stepman / @JarrettStepman / The Daily Signal Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Ed Markey, D-Mass., right, announce their Green New Deal resolution ...

Read More

WATCH: Ben Stein Unleashes On AOC, Compares Her Promises to Those of Hitler & Stalin

Epic smackdown! By John Salvatore/flagandcross Economist, lawyer, and actor Ben Stein is not a fan of Democrat Socialist Alexandria Ocasio-Cortez (NY). Stein declared ...

Read More

Latest News

[smoothslider]

Backdoor $600 Million Tax Increase in Rumored Deal

Share

 

 money-deals-all-come-with-strings-attached-trap

NOVEMBER 9, 2015 | News Release by COMMONWEALTH FOUNDATION

Sales Tax for Property Tax Swap Rumor Leaves Taxpayers on the Hook

November 9, 2015, Harrisburg, Pa.—The latest state budget rumors describe a deal to increase the sales tax to provide corresponding property tax relief. Rather than a “dollar-for-dollar” tax shift, this plan would actually increase taxes on all Pennsylvanians by $600 million.

“This backdoor, broad-based tax increase proposal isn’t the kind of compromise Pennsylvania families are looking for,” said Matthew Brouillette, president and CEO of the Commonwealth Foundation. “When revenue-generating alternatives like liquor privatization, pension reform, and corporate welfare cuts are still on the table, ideas that include hundreds of millions in new taxes should be out of the question.”

The latest budget plan would redirect $600 million in slot-machine revenue from property tax relief to the state Treasury, according to an Associated Press report. That money, which would be spent as the governor and Legislature decide, represents a tax increase since any sales tax increase would have to make up the resulting $600 million deficit in property tax relief funds.

For example, if the sales tax was raised to generate an additional $2 billion next year, property taxes would only by cut by $1.4 million—the $600 million remaining would be directed to new spending.

“Why would we redirect slots revenue used for property tax relief but not the $250 million in slots revenue used to subsidize the horse racing industry?” Brouillette responded. “Why should working families pay more to prop up politically-favored businesses?”

“Pennsylvanians have had their fill of shell-game gimmickry during the last four months of budget negotiations,” Brouillette continued. “Rather than concoct creative ways to disguise tax-increasing deals, lawmakers and the governor should seek common ground that spares taxpayers—who already pay the 10th-highest state and local taxes in the nation—from an even larger burden.

“Liquor privatization—not the governor’s widely-panned scheme to lease state stores to a single private operator—would generate new revenue that could prevent any need for tax increases. With options like those still on the table, there’s no need to ask Pennsylvania families for more.”

The Commonwealth Foundation has placed billboards in the Harrisburg area urging action on liquor privatization for additional revenue, rather than tax hikes.

Matthew Brouillette and other Commonwealth Foundation experts are available for comment today. Please contact Gina Diorio at 862-703-6670 or gld@commonwealthfoundation.org to schedule an interview.

# # #

The Commonwealth Foundation transforms free-market ideas into public policies so all Pennsylvanians can flourish

Comments are closed.

Polls

Please take our reader satisfaction poll. Please select one from each part.

View Results