Colin McNickle At Large

Of pensions, taxation & Irish stew

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Says Pennsylvania Auditor General Eugene DePasquale:

“Despite paying far more than is required, (Pittsburgh’s) pension levels fell further into distress” in 2015. “While some cities are struggling to make their minimum payments, Pittsburgh officials made extra payments, yet the city’s pension plans slid a little deeper toward distress.”

Again, we would remind.

The auditor general, in a report released March 15, said that while Pittsburgh’s pension assets grew from $675 million in 2013 to $688 million in 2015, liabilities rose to $1.2 billion. It’s a funding level of about 57 percent, which places the city’s pension plans in “moderate distress.”

DePasquale refers to Pittsburgh’s struggles as “treading water.” But that’s being kind, if not overly optimistic. Simply put, Pittsburgh’s pension plans are not sustainable.

For as the auditor general himself succinctly states: “Pension plans cannot sustain having far more people collecting benefits than contributing.”

Put another way, Ponzi schemes always implode.

For all those elected “leaders” who inexplicably believe that raising taxes have few if any consequences on business practices, this latest tale from Philadelphia, the City of Onerous Taxation:

Temple University will raise board rates nearly 5 percent for the 2017-18 academic year “solely because of the 1.5-cent-per-ounce sweetened beverage tax. That comes to about $400,000 per semester, reports The Philadelphia Inquirer.

The tax, in effect since January, already has led to layoffs at a major soft drink maker; retail outlets are feeling the same pressure to cut jobs because city consumers have sharply curtailed their in-city soda purchases.

Part of the tax receipts are earmarked for early childhood education. But one critic of the tax — Anthony Campisi, a spokesman for Ax the Philly Bev Tax Coalition — finds it “ironic that a tax the mayor sold on the basis of expanding educational access is now going to be making higher ed less affordable for students.”

A spokeswoman for Philadelphia Mayor Jim Kenney accuses Temple of using the soda tax as cover to raise boarding rates to take the heat off its regular tuition hikes.

Indeed, many institutions of higher learning long have had an unsavory habit of raising costs in excess of inflation (with government aid giving them cover to do so).

But the empirical evidence with the soda tax jibes with reality: It’s the consumer who pays more when government raises taxes on business.

And, finally, on this St. Patrick’s Eve, a tale of an Irish stew:

The cutting and chopping begin early today to fill two large pots atop the stove. In each will be layered large and thick slices of white onions and yellow potatoes. They’ll be followed by layers of cubed beef (too-greasy lamb is off the recipe). Then come the green onions, chopped celery, carrots and parsley.

The layers, each salted and peppered, are repeated until the pots are full; a quarter-pound of butter tops each. Then, poured into the pots, large bottles of red wine — the cheaper the better. It’s the only liquid used to produce what six or so hours later (and never stirred) will be this year’s St. Patrick’s stew.

The aroma of the sweet simmerings will mix with the sharper smells of a locust- and maple-filled fireplace, burning low and, just perhaps, mimicking the sod fire of my ancestors. Baking bread in the oven will be the final seduction.

Friends will arrive, uncorking their favorite wines and uncapping the not-too-cold Smithwick’s ale, fresh from Kilkenny. The good conversation and laughter will be every bit as warm as the stew, bread and fire.

About as much of the stew as the brew will remain as the night ends and the dogs curl by the fire, dreaming of the bowls they licked dry in the kitchen as the guests, their bellies and spirits filled, took their leave.

Happy St. Patrick’s Day everyone.

Colin McNickle is a senior fellow and media specialist at the Allegheny Institute for Public Policy (cmcnickle@alleghenyinstitute.org).

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Colin McNickle
Colin McNickle

Colin received his B.G.S. from Ohio University. The 40-year journalism veteran joined the Institute in October 2016. That followed a 22-year career with the Pittsburgh Tribune-Review, 18 as director of editorial pages for Trib Total Media. Prior that, Colin had a long and varied career in media — from radio, newspapers and magazines, to United Press International and The Associated Press.

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