The Pennsylvania Progressive

The Pennsylvania Progressive discusses progressive politics, issues, and candidates with a particular emphasis on Pennsylvania. All rights reserved. We have moved so please click on a link below.

Thursday, June 15, 2006

Property Tax Reform

The State House finally passed some property tax reform yesterday. This bill had passed the Senate well before the primary election but was stalled by Republican House leaders. While not very significant it does target benefits to those those affected: fixed income seniors and the poor. The plan expands the current, lottery funded property tax/rent rebate program.

As the Reading Eagle reports:

About 761,000 people 65 or older with annual incomes of $35,000 or less would get rebates ranging from $250 to $650 annually starting this year, according to figures released last month by the state Senate.

Governor Rendell has said he will sign this bill.

While not great, any reduction of property taxes is progress. Nothing has been accomplished for so long that anything meaningful is a good sign. Property taxes can be significantly reduced, both school and county, with a responsible state legislature working with the Governor. The only way this can be done is by tax shifting and by the state and federal governments restoring funding for mandated programs. Much of the increases in taxes has been due to actions taken on the state and federal levels. For example the lack of universal, single payer health care has caused costs for health insurance to skyrocket. The lack of a coherent, intelligent energy policy has resulted in soaring gas and energy costs. These issues are beyond the scope of what local school boards and county commissioners can control.

The 50% pension increase state legislators voted themselves a few years ago is another reason for increased local taxes. To mask their greed they included a 25% raise for teachers pensions. This had a meteoric affect on taxes as districts had to raise their contributions to pension funds. Proposed legislation like TABOR would also negate any tax savings from current reform. Cuts in Community Development Block Grants and other federal programs also result in increased county property taxes.

The new legislation, while not great, is good. I like candidate Bill Mackey's (D-Schuylkill) concept that we shouldn't sacrifice the great for the sake of the good. We should strive for greatness. With the present make-up of our state legislature, however, the good shouldn't be sacrificed for the sake of the great. After all, these are the same people who voted themselves that pension increase, that infamous pay raise, and all those wonderful perks. The same ones who have failed to pass lobbying disclosure rules and caps on campaign contributions. Sometimes the good is all we can do. This legislation is good. Now let's get out there and elect some great people so we won't have to sacrifice the great for the sake of the good any longer.