|
|
Rep. Mary Ann R. Dailey (R-Montgomery) Results of an independent study revealed at a press conference this week said the Commonwealth Caucus' Plan for Pennsylvania's Future is financially sound and doable. This plan will help strengthen the Commonwealth's economy by attracting more businesses and eliminating property taxes and is definitely an option worth investigating when the General Assembly once again takes up the issue of property taxes The Plan for Pennsylvania's Future seeks to simplify the state tax system, eliminate the unpopular school property and nuisance taxes, promote economic development through a more fair "consumer choice" tax system, and be easily understandable. The plan introduced early last year would eliminate school property taxes and other nuisance taxes while funding public education through a lower but broader sales tax. Key elements of the plan include: Eliminating school-related earned income taxes and nuisance taxes within one year after the plan is implemented. Eliminating school property taxes within three years after the plan is implemented. Lowering the state sales tax from 6 percent to as low as 4 percent and broadening it to include most products and services. The tax will better capture revenue from tourists visiting the state and is more fair because it is based more on a person's ability to pay. Assuming full, 100 percent funding of public schools by the state using money generated from the sales tax and deposited in an Education Operating Fund. Spurring economic growth by lifting the burden of school property taxes from the backs of businesses and families, providing yearly funds for spending and saving and other uses. Members from the nationally recognized financial consulting firm Fishkind and Associates and Economy.com of West Chester completed the results. Those conducting the study expect a minimum $9 billion more each year through the implementation of the plan. Both taxpayers and businesses are anticipated to benefit from this innovative new tax plan, which will ultimately decrease property taxes and increase economic development. The results from the report confirm the following: The plan is fiscally sound and provides the necessary revenue to overhaul Pennsylvania's problematic school funding program by eliminating the school property tax and switching to a lower, broader-based sales tax. It will be phased in over a three-year period to create a substantial revenue buffer fund of $6.7 billion to protect the integrity of the reform plan during implementation. The plan would succeed in eliminating over $11 billion in local taxes between 2007 and 2008. The plan will have a significant and positive economic impact on Pennsylvania's economy and make Pennsylvania even more attractive for business and job creation. Eliminating school property taxes is a powerful economic stimulant. Property taxes are the second largest fixed expense for most businesses. By cutting property taxes and other local school taxes, in its initial five-year period the plan will create 139,000 new jobs in Pennsylvania. Eliminating all school property taxes will increase property values significantly. The substantial boom in job growth in the initial implementation stages of the plan comes primarily from its positive economic impacts on property markets. With significantly lower property taxes the plan will stimulate new construction and investment in Pennsylvania. Thereafter the permanently lower cost of doing business will result in an ongoing improvement of Pennsylvania's overall economic competitiveness both nationally and internationally. Most importantly, the plan significantly benefits the average Pennsylvania household. In others words, a 100 percent reduction in property taxes for the average household exceeds the increase in sales taxes they will be paying on the newly taxed goods and services. Retired homeowners will no longer be at risk of being forced out of their homes by property tax bills they cannot pay. Renters also stand to benefit due to a stronger and competitive economy that generates more family-sustaining jobs in the short run and over the long term. They may also potentially experience a reduction or stabilization in their monthly rent expenses. These highly favorable results will be subjected to further review and fine tuning by the independent peer review committee in order to find comprehensive strategies to address any unresolved issues. The plan will be introduced as legislation in the next couple of weeks. CapNews Guest Speaker: Archives |
