Ample need to reform Pa. government

Published: November 29, 2009

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Pennsylvania, in many ways, is the land of archaic governance. It enshrines needless cost and broad redundancy in allowing thousands of units of local government. Its Legislature is among the largest and most expensive. And, according to a study by Institute on Taxation and Economic Policy, it has one of least fair tax systems of any state.

The study found that the poorest fifth of Pennsylvanians pay a far larger share of their income - 11.3 percent - than the wealthiest citizens of the commonwealth - 5 percent. The disparity is even greater, to about 3 to 1, when savings from itemized federal tax deductions - for which most low-income taxpayers don't qualify - are added.

Pennsylvania's ranking as the ninth worst state for regressive tax policies is rooted in the Legislature's failure to reform local property taxation, and its adherence to the fiction that flat-rate sales and income taxes are equitable.

Sales and income taxes are inherently regressive because of their constitutionally mandated flat, rather than progressive rates. But the study identified the biggest culprit as property taxes, still the primary funding device for 500 local school districts, which the Legislature could mitigate in any number of ways.

Lawmakers claimed to be doing just that by dedicating the majority of the state's share of casino revenue to reducing school property taxes. So far, taxpayers have experienced modest reductions for two years. But because of the bill soon coming due for the lawmakers decision to lavishly pad their own and teachers' pensions, school districts soon will have to come up with hundreds of millions of extra dollars. That has the potential to wipe out any property tax savings from the casino revenue.

For low-income taxpayers, that is a double whammy, since studies have shown that state revenue from casinos is a back door tax on the poor.

The study reveals another example of poor governance at the state level, and adds further weight to movement for a constitutional convention that could result in better governance through a leaner, modern state government.

To sign a petition calling on the Legislature to move for such a convention, go to www.democracyrisingpa.com.

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3 posted comments

New York Times newspaper sales are down all across Bradford County. Liberals are buying The Daily and Sunday Review, instead. It's a more liberal newspaper; gives them the hard left viewpoint that makes them tingle. Regrettably for The Review, there are not more than a hundred liberals IN Bradford County. But for liberal evangelist editor Ron Hosie, that makes no difference whatsoever. His idea of nirvana is watching MSNBC nonstop for an entire week.
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Thad Milvern,  11/30/09 5:30
More proselytizing by the liberal Review that progressive rate taxes are more fair than flat rate. Although that's the way the Review see it, the fact is the flat rates are the fairest.
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TheTruth,  11/29/09 6:44
Sounds to me like just more redistributionist nonsense. Don't we have enough of this already in Washington, DC? I think this stuff is tearing the country apart. We surely don't need it in Harrisburg!
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Don Blastingame.,  11/29/09 3:47