Why S.T.O.P. Chose These Replacement Taxes
The S.T.O.P. group did not want to be just another group of citizens demanding elimination of property taxes on the homesteads and farmsteads, without a way to provide alternative funding. We believe it is our obligation to offer some alternative taxes to provide the replacement revenue.
We chose the three replacement taxes -1% sales tax increase; 1-1/2 % State Income Tax increase; and 2% Real Estate Transfer Tax increase because:
1. They are broad based taxes, not overburdening any segment of our society-unlike the property taxes.
2. They are all based on one's ability to pay-unlike property taxes.
3. They do not require establishment of a bureaucracy to collect them-unlike property taxes.
4. They generate adequate revenue.
5. They are efficiently collected-unlike the property taxes.
The Sales & Use Tax: Collects revenue from out-of-state persons as well as Pennsylvanians; those working `under the table' or involved in illicit activities pay sales taxes, too.
A family of four with $25,000 income would pay less than $8.00 per month more (or less than that with smart purchasing.) Note: We do NOT support taxing food and clothing since it puts a greater burden on the poor who spend a much larger portion of their income on food and clothing.
The State Income Tax: Low income folks do not pay Pennsylvania State Income Tax. Higher income folks who itemize can deduct PA Income Tax from their Federal Income Tax. A family of 4 with income under $30,000 pays no state income tax in Pennsylvania. Higher income folks-those most capable of paying will pay more.
The Real Estate Transfer Tax: Paying this onetime realty transfer tax (negotiable with the seller) is far more attractive to home buyers than the uncertainty and burden of ongoing property tax increases. Again, the amount paid will depend upon the cost of the home purchased.
Bob Logue
Visitor Comments:
- Anonymous says :
- I am so tired of the politicians ignoring the plea for elimination. I am actively working to oust all politicians that voted no to tax reform bills that would move to eliminate property tax. Also any politician that voted yes to HB 39 is on my list to be ousted. HB 39 is a farce not tax reform! Thirty years is too long!
I fully support the S.T.O.P. program.
- Anonymous says :
- There is so much that you don't even consider here. First of all, you argue that these alternative taxes are based on one's ability to pay. Are you saying that all Pennsylvanians are able to withstand a 1.5% income tax increase equally? What a crock! PA already has a horribly regressive state income tax. If you want to truly make it fair, it should be graduated upward with income. Those at the lower ends should pay very little (if anything) while those at the top should pay much more.
Secondly, a 2% increase in the real estate transfer tax is outrageous. You are complaining that the current tax system hurts seniors. Well, this new system hurts young families who are trying to get started to own a home. They are hit at EVERY angle -- higher sales tax, higher income tax, and now this! They have to come up with all that money up front before they can ever purchase a home. Of course AARP folks like this plan because they already own their homes. Perhaps if they can't afford to live in their homes anymore, they should sell them to someone who can and buy a small condo or townhome. Then everyone would be happy.
I think the current system, while expensive, is the best way to fund our schools. If seniors have their way, the teachers will all be making 20K per year again and classes would have 40 kids in them. What do they care? Their kids are already out of school. STOP is a selfish plan and further demonstrates how our country (and state) bends over backwards to fund breaks for the elderly while ignoring our children, our future.
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