The New Exchange

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3/04/2015 9:58 pm  #11


Re: Governor Wolf’s school property tax proposal

Time to float some opinions on school funding/taxation that I posted on the old exchange:

1)  The main reason why school property taxes become a generational issue (senior citizens vs.parents) is that most parents are either renters or mortage-payers, and, if the latter, they aren't aware of the tax payment because most mortgage companies escrow for taxes and insurance.  In many cases the mortgage-payer never actually sees the tax bill. And the multi-thousand dollar bill is spread out over 12 months.

Senior citizens with paid-off mortages, on the other hand, see that whopper of a bill arrive in July.  They need to pay it by September 1 in order to receive the 2% discount (a great deal, really--what financial instrument other than junk bonds is paying 12% per year?).  And just as they are paying the bill the teacher contracts are being settled (or not--maybe the teachers are striking) AND the previous year's SAT scores are being released.  A perfect storm of discontent.

2)  Let's talk about "THE RENTERS"--the freeloading scum of the earth in many taxpayers' eyes. The self-righteous taxpayers ass/u/me that THE RENTERS don't pay property tax. And they are right--they don't pay directly.

But the landlord doesn't pay the property tax out of the goodness of his heart--he prorates it monthly and it is part of the rent.

3)  Now to the question of funding and what mix of property, sales, and income tax.  Let me add another perspective:  As one who files a Schedule A IRS form I actually like the status quo.  The property taxes are 100% deductable. 

But I must choose  either to deduct  the State Income tax or the State sales tax--can't do both.  So if property taxes are reduced and sales taxes increased.....guess what, I get a Federal tax increase.


Life is an Orthros.
 

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