It’s time to eliminate property taxes
Harrisburg, the time has come! Since the 24-24 tie vote in 2015 to eliminate school property taxes through HB76/SB76, Harrisburg has continued to drag its feet.
We, the property owners, continue to pay more and more each year, so why does this “regressive” tax burden continue to stay on the same path? If Harrisburg does not resolve this problem soon, I will use the phrase from Mark Madden, “I’ve got some bad news.” Simply it will never allow the homeowners the peace of mind they deserve.
Why not, Harrisburg? One reason comes to my mind, leadership. All in Harrisburg are aware of the problem, but over the past 20 years several so-called fixes, words like reform and reduce, were tossed around by all, but we the people call it “leadership.” One of the most misleading fixes was the revenues generated by gambling.
In 2004 it was sold to the people by the governor that the revenues generated by gambling would give relief to the school taxes, but never really gave the relief expected. So property owners continue to deal with increases year after year. The sad part of this regressive tax is the school district has the power to take your home.
Whether you lose your job, family members get sick and cannot generate income or senior citizens on fixed income who cannot keep up with those increases. Back in November, we the people were asked by Harrisburg through a voter referendum the question: yes or no to change the constitution to increase the homestead exclusion up to 100 percent elimination. The question has been answered YES, so now it is time for Harrisburg to fix the problem with the antiquated property tax system. The only fix is SB76 to eliminate funding through property taxes for education. The time is “NOW,” Harrisburg, to fix the problem once and for all.
Byron Schnell
Lehighton
Comments
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The elimination of school property taxes increases the disposable income of property taxpayers. The analysis assumes that 70% of the property tax cut goes to individuals. It further assumes that homeowners spend 90% of the increase in disposable income. (Pages 17-18)
The analysis indicates that the legislation will cause home values to increase, on average, by more than 10% statewide. (Page 23)
Working age homeowners realize a tax cut. The analysis finds that the increase in federal income tax (through lower itemized deductions), state income tax, and sales tax is more than offset by the reduction in property taxes. (Page 21)
Retired homeowners realize a significant reduction in taxes. The analysis finds that the property tax reduction easily offsets any increase from the higher sales tax. (Page 21)
The elimination of property taxes would significantly reduce the property tax share and would clearly increase the attractiveness of the Commonwealth for business location and expansion. (Page 25)
Benefits would also accrue to home builders, home developers, and other land owners who convert current land holdings into new housing plots. Employment would increase in the construction sector as well. (Page 23)
(Regarding business entities) … the income flows through to individuals as higher disposable income. For pass through entities, the analysis assumes that owners and shareholders spend 90 percent of the increase and 70 percent is spent on taxable goods and services, yielding another secondary effect of $34 million in increased sales taxes for FY 2013-14. (Page 18)
Sorry, but it's a 1.88 percentage POINT increase, not a percentage increase. Big difference.
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You should go to the right library for your information before you make comment ! Obviously you know nothing of the bill.
#1 if your School Board has been disrespectful and been spending YOUR MONEY...... AND OUR MONEY like they have an open checkbook, then unfortunately WE ARE RESPONSIBLE to pay that debt. If you just happen to have $106 +
million in your wallet to pay off the bonds, WE would all be indebted to you ! As the bill is designed the debt will be paid as the sunset date for each bond has been reached. Once all bonds are satisfied this regressive property tax will be DEAD FOREVER !!!!!
#2 Sales And Use Tax will increase $.01 per every dollar spent and nothing under $50.00 will be taxed and this burden will be levied to every consumer across the state resident or not, not a bad trade off for losing your house if your a Senior, or if you are a first time home owner looking to enjoy a comfortable life style and eventually own your home instead of renting it from the state.
#3 The taxes collected will be consigned to the Education Stabilization Fund. FINALLY there will be local control and residents will have Controll of how they live there life. If your School Board wants to spend your money they will have to ask you by a voter referendum. End of story !! So you will be informed I will give you a link to the bill.
https://www.legiscan.com/PA/bill/SB76/2017
The current debt will be paid down, this is correct, but new debt will begin to accrue that is paid down by the other tax sources such the sales tax or state income taxes. Unless you believe that your school district will suddenly not have to float bonds to cover deficit or capital costs upon passage of this bill........
You give the $14B back to the people and they inject it into the economy hyper stimulating the economy. Low income folks are protected by the bill in a number of ways. Also, home ownership is at all time lows and rental occupancy at all time highs. The dream of home ownership is a dying dream for many since property taxes often exceed mortgage. SB76 would unleash a crazy pent up demand by renters to buy. This in, turn would leave landlords in price wars to fill their units. This would directly help with community blight, pride in ownership rather than slumlords. At the very worst it would stabilize rents. Marker forces always prevail.
The demand for construction workers and realtors would sky rocket helping many find good stable work. Folks fear putting additions on their homes due to tax increase. That would all change.
PA is one of the leading states for out-migration. Number one reason cited, taxes with property taxes being the highest category. There are 10,000 tax sales every year. If those homes contain the average family we are talking 40,000 souls be tossed out into the street annually. This is above and beyond foreclosures. Inability to pay mortgage (property taxes escrowed) is either a direct or indirect cause of foreclosures. There are far more that 10,000 foreclosures annually in PA. There are probably at least 100,000 souls tossed out of their homes annually in PA.
Our universities are consider top in nation, we educate our youth but many leave due to lack of opportunity. Shed property taxes from business and the business fortunes of PA would dramatically improve stemming the brain drain issue.
The positives of SB76 are an incredible positive domino impact which goes far beyond the tax shift. It is simply a more fair and equitable way to fund education. Spread the cost to everyone based on their ability to pay, not on their zip code.
NO TAX SHOULD HAVE THE POWER TO LEAVE YOU HOMELESS!
Another lie: "Home ownership is at all time lows". Home ownership rates are still higher than what it was in the 70's and generally equal to the 80's and 90's. Has home ownership gone down in the last 10 years? Yes, but not because of taxes. In case you missed it, mortgage companies were giving out huge mortgages to unqualified buyers and that whole bubble popped when those buyers couldn't pay the bills when the great recession hit. That was an issue of fiscal discipline by buyers fueled by bankers greed.
Lets address out migration. I haven't seen polls but I wouldn't doubt that property tax is among the reasons because the majority of those leaving are retirees. I love the older folks in my life but THIS IS A GOOD THING. As people age they become more of a financial burden on the services of the state and they do not pay income taxes to cover it. They consume medical care that is not 100% reimbursed by Medicare. Frankly, if property taxes serve as an encouragement to retirees to leave, this is better for the state.
Income and sales taxes are another story. Both cut into a consumer's ability to consume with no escape mechanism other than to not buy things. Lowered consumption hurts business, particularly retail and manufacturing. Saying that this bill will spark business growth is going against every market force as we know them. You also leave out that most business in the commonwealth are small and pay the individual income tax. This proposal will kill those businesses.
I get it, this benefits you personally because you don't have earned income, you are not looking for a job and you have a big house. But laws need to be passed that benefit the whole.
NO TAX SHOULD BE ABLE TO LEAVE YOU HOMELESS - Taxes should only be transaction based, owning a thing should never induce a tax only buying, or selling.
There indeed is an issue with funding parity across the state, I agree with you on that. But 76 does not solve that so this is a different discussion.
Aside from the historic income tax increase, you will also have an immediate 7% increase in the cost of all of these goods and services. Take note, prefabricated housing is subject to taxes under this plan, so much for helping lower income home buyers. Oh, and all your food will go up 7% overnight as well. This is a terrible bill.
NEWLY TAXABLE GOODS
•Food (not including items on the Women Infant and Children list)
•Candy and gum
•Clothing and footwear over $50 per garment
•Non-prescription drugs
•Newspapers and magazines
•Personal hygiene products, including diapers
•Religious publications
•Caskets and burial vaults
•Flags
•Textbooks
•Motion picture rentals for commercial exhibition
•Direct mail/mail order catalogs and magazine subscriptions
•Horses
•Historical markers and memorials
•Computer software
•Used prebuilt housing
•Airline catering
•Uniform Commercial Code filing fees
•Metal bullion and investment coins
•Alcohol served at drinking establishments
NEWLY TAXABLE SERVICES
•Intrastate transportation of persons utilizing air, rail, water and taxi services, including public transportation
•Towing services
•Sightseeing and tour buses
•Movie theater and drive-in admission
•Basic and premium cable subscription
•Investment advice
•Legal services (except business-to-business, family and criminal law)
•Accounting, auditing and bookkeeping services (except business-to-business)
•Architectural and engineering services (except business-to-business)
•Specialized design services (except business-to-business)
•Advertising and public relations (except business-to-business)
•Services for buildings and dwellings (except business-to-business)
•Scientific, environmental and technical consulting services (except business-to-business)
•Information services (except business-to-business)
•Office administrative services (except business-to-business)
•Facilities support services (except business-to-business)
•Custom programming, design and data processing services (except business-to-business)
•Veterinary services (except business-to-business)
•Parking and garage services (except business-to-business)
•Employment services
•Waste management
•Non-tuition and non-housing-related charges imposed by junior colleges, colleges, universities, and professional schools
•For-profit ambulatory health care, nursing care facilities, substance abuse facilities, retirement communities
•Daycare services
•Spectator sports, theater, dance and musical admissions (excluding schools, non-profit and charitable organizations)
•Museum, zoos and amusement park admission
•Recreational parks and campgrounds
•Haircuts and salon services
•Funeral home services
•Dry cleaning and laundry services
The analysis indicates that the legislation will cause home values to increase, on average, by more than 10% statewide. (Page 23)
Working age homeowners realize a tax cut. The analysis finds that the increase in federal income tax (through lower itemized deductions), state income tax, and sales tax is more than offset by the reduction in property taxes. (Page 21)
Retired homeowners realize a significant reduction in taxes. The analysis finds that the property tax reduction easily offsets any increase from the higher sales tax. (Page 21)
The elimination of property taxes would significantly reduce the property tax share and would clearly increase the attractiveness of the Commonwealth for business location and expansion. (Page 25)
Benefits would also accrue to home builders, home developers, and other land owners who convert current land holdings into new housing plots. Employment would increase in the construction sector as well. (Page 23)
(Regarding business entities) … the income flows through to individuals as higher disposable income. For pass through entities, the analysis assumes that owners and shareholders spend 90 percent of the increase and 70 percent is spent on taxable goods and services, yielding another secondary effect of $34 million in increased sales taxes for FY 2013-14. (Page 18)
Beware of projections that assume consistent sustained economic growth. The economy just doesn't work that way and there are many factors that are involved. To say a redistribution of 15 billion in tax revenue will suddenly give us more money is just not based in reality or common sense.
This whole brouhaha is a freaking joke. You are reaping what you have sown. The smart folks are leaving. The educated kids never come back. They know their elders have turned this state (and especially the coal regions) into a disgusting slum.
It's gotta be the teachers' fault, right?
Oops - almost forgot, the immigrants too. Yup, that's the ticket.
The General Assembly shall provide for the maintenance and support of a thorough and efficient system of public education to serve the needs of the Commonwealth. This means funding should be coming from the state level. Article 3; Section 14 may soon be tested. Two years ago six school districts filed a lawsuit claiming the state has “adopted an irrational and inequitable school financing arrangement.”
The Pennsylvania Supreme Court has agreed to hear the lawsuit. In their ruling that the case may continue they found that the “state constitution is not a loose set of guidelines.” Justice David Wecht wrote, “It is settled … that constitutional promises must be kept.” If Supreme Court rules to enforce Article 3; Section 14 ALL school funding would be required to come from a state level source, once again exactly what SB76 does.
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Better to say nothing and be thought a fool than it is to open one's mouth and prove it.
Pagination