The New Exchange

You are not logged in. Would you like to login or register?



4/12/2015 9:44 am  #1


Nick Pandelidis: Here's a better way to reform property taxes than Gov

Nick Pandelidis: Here's a better way to reform property taxes than Gov. Wolf's plan (column)

http://www.ydr.com/letters/ci_27887908/nick-pandelidis-heres-better-way-reform-property-taxes

Gov. Wolf has proposed the largest budget in the history of the commonwealth with the stated intent of addressing three critical problems: Property tax that for many has reached intolerable levels, failing urban Pennsylvania government K-12 education, and the $32 billion unfunded pension liability of the Public School Employees Retirement System (PSERS). Although Gov. Wolf has accurately identified critical problems facing the citizens of our commonwealth, he has offered only false solutions.

How would real property tax reform work?

Each year, more than 10,000 Pennsylvanians' homes are seized by the government because of their inability to pay the property tax. Thousands more have had to sell their homes under duress. Most unjustly, many seniors who paid off their mortgages years ago now have property tax bills greater than their prior mortgage payments. Living on fixed incomes, many have had to resort to reverse mortgages, forfeiting their hard-earned ownership of their homes. This situation will only worsen with the expected 30 percent increase in property tax in just the next three to four years. Over the next 10 years, school spending is projected to continue increasing at an annualized rate of 6.25 percent, growing an already harsh taxpayer burden for government K-12 education of $24 billion to an unimaginable $44 billion.

The unfunded PSERS liability is the major driver underlying this unsustainable spending growth.

It is inconceivable that a government founded by its citizens to protect their life, liberty and property can now impose a tax that results in eviction of individuals and families from their homes. SB 76 and HB 76, The Property Tax Independence Act (PTIA), would end this travesty. Unlike Gov. Wolf's proposal that imposes one dollar of new taxes for every 30 cents of property tax relief, the PTIA is revenue neutral — one dollar of property tax relief for every dollar of new tax.Like the Wolf proposal, the PTIA increases and broadens the sales tax and raises the income tax modestly.

Unlike property tax, sales tax provides a predictable and stable funding source that would generate revenue proportional to economic activity and growth. Further, unlike property tax, the amount of sales tax paid would be a reflection of household income. The PTIA at the outset would fund all school districts at their current levels, with a dollar-for-dollar replacement of the eliminated property tax. Going forward, every district would receive identical percentage annual base funding increases that would be limited to the increase in the Consumer Price Index.

Most importantly, and unlike the Wolf proposed property tax relief, the PTIA eliminates the school property tax, period!

The majority of school property tax elimination would be accomplished via a two-year phaseout of school property taxes.

In the first year, school property taxes would be frozen at their current level. In the second year, the tax would be eliminated except for that portion of a school district's budget servicing outstanding long-term debt — on average, 10 percent of a district's budget. Once that debt was retired, so would the property tax. On the second year after the enactment of the PTIA, homeowners, landowners and farm owners would, on average, benefit from a 90 percent reduction in their property tax bill — and ultimately, from a 100 percent reduction.

For the very real problems associated with the school property tax, Gov. Wolf offers a false and deceptive solution. On his website, Wolf claims average homeowners will see more than a 50 percent reduction in their school property tax bill. That same website extols Gov. Wolf's "historic $3.8 billion in property tax relief." Yet, the annual school property tax bill statewide is currently more than $12.7 billion — $3.8 billion amounts to about 30 percent of that collection.

More importantly, Gov. Wolf's "property tax relief" would be fleeting given the aforementioned projected 30 percent increase in property taxes over the next three to four years, and the longer 10-year projection of 6.25 percent annualized growth for taxpayer funded K-12 government education.

With the governor's proposal, "property tax relief" will have evaporated in three or four years. And in another three or four years, the property tax will have grown to 30 percent more than our current tax bill. Additionally, taxpayers will be also further burdened by Gov. Wolf's new sales and income taxes.

Contact the governor's office and your legislators. Tell them you want a real solution to unsustainable property taxes and property tax growth. Let them know that you will not be deceived by Gov. Wolf's "property tax relief" plan.

Tell them to end the unjust and unconstitutional property tax that can evict individuals and families from their homes. Tell them to pass The Property Tax Independence Act.

More is coming on real solutions for the failed urban Pennsylvania K-12 education system and on the unfunded pension liability.Please join the campaign for liberty. Our future freedom and prosperity depend on it.

Pandelidis is a regular contributor to Viewpoints.

Last edited by Common Sense (4/12/2015 9:50 am)


 “We hold these truths to be self-evident,”  former vice president Biden said during a campaign event in Texas on Monday. "All men and women created by — you know, you know, the thing.”

 
 

4/12/2015 10:07 am  #2


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

Are you kidding?  This guy is nuts with some of his ideas. Don't know how he gets in the paper all the time.  JMO.

 

4/12/2015 10:12 am  #3


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

florentine wrote:

Are you kidding? This guy is nuts with some of his ideas. Don't know how he gets in the paper all the time. JMO.

Don't know whether he is truly nuts or not, but his statistics are really not totally accuracte. The OFT QUOTED 10,000 number refers to sheriffs sales. We have be through this MANY TIMES. Sheriffs sales are because of many reasons, NOT JUST PROPERTY TAX NON-PAYMENT. Nevertheless it gets used over and over without fully researching. Not surprising, however. 

There may be many reasons that we need to reform our taxing system. But let's at least present the case without distortion. 





 

Last edited by tennyson (4/12/2015 11:25 am)


"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
 
 

4/12/2015 10:20 am  #4


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

I saw he had ANOTHER article in the paper this morning and just went right by it.  I don't even read him anymore.  He's a wingnut.  Very biased, partisan and eager to tear down his ''opponents'' that he sees everywhere by spinning and distorting things.  JMO

 

4/12/2015 11:49 am  #5


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

I read Pandelidis' commentaries once in a while.  While I don't agree 100% with what he says, he puts up a much better argument toward his thinking than those who oppose him have ever put up for their stance.

Last edited by The Man (4/12/2015 11:54 am)

 

4/12/2015 11:53 am  #6


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

I used to know Nick when I lived in York.
He's a decent guy.
His political views are too much in the Tea Party camp to have any appeal for me, but argues his points earnestly.
Tennyson brings up an excellent point in that there are problems with the numbers that Pandelidis presents in this essay.


We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists. 
 

4/12/2015 11:57 am  #7


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

Yeah lets just leave it like it is, and let governor Wolf raise our income and sales taxes on top of it.

 

4/12/2015 12:02 pm  #8


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

The Man wrote:

Yeah lets just leave it like it is, and let governor Wolf raise our income and sales taxes on top of it.

Has someone here suggested that?
I think that Tennyson and I merely noted that Nick might take greater care in getting his numbers right.

Last edited by Goose (4/12/2015 12:05 pm)


We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists. 
 

4/12/2015 12:06 pm  #9


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

Goose wrote:

The Man wrote:

Yeah lets just leave it like it is, and let governor Wolf raise our income and sales taxes on top of it.

Has someone here suggested that?

 
No,but that's what governor Wolf is proposing to do.

Last edited by The Man (4/12/2015 12:06 pm)

 

4/12/2015 1:07 pm  #10


Re: Nick Pandelidis: Here's a better way to reform property taxes than Gov

The Man wrote:

Goose wrote:

The Man wrote:

Yeah lets just leave it like it is, and let governor Wolf raise our income and sales taxes on top of it.

Has someone here suggested that?

 
No,but that's what governor Wolf is proposing to do.

Well, he'll have to sell the legislature on that.


We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists. 
 

Board footera

 

Powered by Boardhost. Create a Free Forum