Monday, May 07, 2007

Pennsylvania school districts look to raise income taxes, lower property taxes

This primary election, school boards will ask voters to approve a referendum that will increase income taxes and decrease property taxes.

This tradeoff will benefit senior homeowners and place an even greater tax burden on wealthy renters. The Trib has the story today.

This referendum is a veiled tax increase and the DN urges you to oppose it. It fails to address the inherent structural problem with public education - using local property values to raise monies. It continues to divide the haves and the have-nots.

And in other news, Joe Hardy married Kristin Georgi. [AP]

2 comments:

Highland Ave. said...

I don't think it's a veiled tax increase. It's just a bandaid for bad policy. Taxing homes to raise funds for education is stupid... a relic from a time when government wasn't sophisticated enough to tax income.

Now, the Fed and State governments operate solely on income tax. I don't know why the school systems can't as well.

I say oppose it until they come up with something better.

CapitolMAN said...

The theory behind a district taxing property rather than wages stems from the fact that one's income increases faster than property over time. A person is incentived to increase their income. If the referendum passes, there will be no change in a district's total revenue. If property values remain constant - and income expands - schools will collect more money in years 2, 3, etc. Young families will move even more quickly from senior-laden districts to areas with lower wage taxes.