Wednesday, May 03, 2006
The Referendum That Really Matters
The Pennsylvania Senate just passed—and the House is considering—a property tax reform bill that offers relief to seniors and requires a voter referendum for school taxes that grow faster than the rate of inflation. Unfortunately, the bill contains so many exemptions to the referendum requirement that it has been rendered impotent. If more money is needed to cover rapid growth arising from costs due to health care, pensions, construction, or special education, a referendum will not be required.
In short, the factors that are currently driving most of the increase in school costs will be allowed to continue to grow as fast as the teachers unions demand and school boards agree to let them. Taxpayers will continue getting stuck with the bill and have no voice in stopping the outsized increases.
Moreover, since the tax relief bill is aimed at seniors, it fails to address the problems younger working families are having making ends meet. And it does nothing to help businesses who must also pay property taxes. While helping seniors is compassionate and generous, the state really needs to worry about the taxes that prevent businesses from expanding and creating jobs. Otherwise, the anemic job growth and the outmigration of Pennsylvanians will continue, particularly in the higher tax counties such as Allegheny. The vicious cycle will be sustained. The more we ignore the underlying problems, the greater the burden on those left who can pay and the more incentive they have to leave.
The movement of people, businesses and capital from Pennsylvania is the ultimate referendum. There is a vote taken, but instead of a regular ballot, folks are using their feet. Every day becomes an election day. The Commonwealth can continue to pander to voting blocs and watch the unpandered groups vote with their feet, or it might decide to address some of the causes of high property taxes and bad business climate that hamstring the state’s economy.
The referendum that matters is the one where people decide they’ve had enough.
In short, the factors that are currently driving most of the increase in school costs will be allowed to continue to grow as fast as the teachers unions demand and school boards agree to let them. Taxpayers will continue getting stuck with the bill and have no voice in stopping the outsized increases.
Moreover, since the tax relief bill is aimed at seniors, it fails to address the problems younger working families are having making ends meet. And it does nothing to help businesses who must also pay property taxes. While helping seniors is compassionate and generous, the state really needs to worry about the taxes that prevent businesses from expanding and creating jobs. Otherwise, the anemic job growth and the outmigration of Pennsylvanians will continue, particularly in the higher tax counties such as Allegheny. The vicious cycle will be sustained. The more we ignore the underlying problems, the greater the burden on those left who can pay and the more incentive they have to leave.
The movement of people, businesses and capital from Pennsylvania is the ultimate referendum. There is a vote taken, but instead of a regular ballot, folks are using their feet. Every day becomes an election day. The Commonwealth can continue to pander to voting blocs and watch the unpandered groups vote with their feet, or it might decide to address some of the causes of high property taxes and bad business climate that hamstring the state’s economy.
The referendum that matters is the one where people decide they’ve had enough.
