Allegheny Institute Blog

The Governor is livid over the refusal of the House Republican leadership to bring the property tax relief for seniors to a vote. Maybe the Governor now understands how Republicans must have felt when he vetoed the modest tax cuts for Pennsylvania’s businesses earlier this year, a bill they had worked hard to get passed and one that could have sent a positive message to the state’s business community.

The Governor followed that veto with another one on the needed and sensible voter protection bill that would have ensured that people showing up to vote are in fact who they say they are by requiring ID.

But beyond the tit for tat, the tax relief bill was nothing more than pandering to certain voters and did not deserve to pass. Obviously, there is a crying need for meaningful tax relief for all property tax payers. But that reform must include some measure of spending reduction in addition to any shift of property taxes onto other taxes.

And if the legislature and the Governor are really serious about doing something for taxpayers they will enact a bill that requires a voter referendum for every tax increase with no exemptions to the referendum except for emergencies resulting from an act of nature. They could also repeal the right to strike by teachers and other public employees such as transit drivers. Eliminating the prevailing wage law would be very helpful as well.

We will know the Governor and legislative leaders are serious about helping taxpayers when they propose legislation to launch any of these real spending reduction measures. Until then, the debate will continue to be a sterile round and round exercise of trying to decide who the winners and losers in the tax reform legislation will be. We know where that gets us—nowhere.