Taxation Without Representation???

We can no longer say that we have “taxation without representation” but we can however say that we have “taxation without competent representation”.

This week the Senate held specials sessions to discuss Senate Bill 854. For those of you who are not familiar with this bill I will give you a very brief explanation.

1) Expanded sales and use tax to include some business transactions, advertising, accounting, consulting services, basic telephone service, amusement/movie theater admissions, dry cleaning, clothing alterations/shoe repair, vending machines, so on and so on and so on. No tax levied on food or clothing (only candy).

2) Promises a 40% reduction in property tax.

3) Will increase PIT from 3.07% to 3.29%

These are the very basics of the bill on which they are preparing to take a vote!

Now lets look at the ramifications:

1) Businesses are rallying to fight against the broadened sales and use tax as it relates to their business. They will probably win because the Business Associations are a large special interest group within the State. I found it interesting to hear PA Institute of Certified Public Accountants testify that “residential property tax can not be carried on the backs of already over taxed business”. Imagine that! They may as well have said “but it should be carried on the backs of the already over taxed residential property owners”. The amount of tax relief that is being proposed is built on the expanded tax structure. If the business community wins, the amount scheduled for relief will probably be even lower!

2) When they talk about the 40% reduction…..LISTEN UP!!! Legislature will approve a 40% property tax reduction based on the “mean” tax bill in the county. You need to find out from your elected officials what the "mean" tax bill is for your county and find out what this will mean in tax relief for you. In some cases this may be of little help.

3) I say this because by the time your school board increases your taxes in 2006, the government reaches into your pocket and raises your PIT/EIT or possibly both, you pay the additional broadened sales and use tax throughout the year….guess what….your tax relief is gone…and maybe more….you could actually pay more in 2006 if this bill is passed than you would if they passed nothing at all!

Keep in mind that as long as local authority, by way of your school boards, have the power to continue to raise your school property taxes they will increase.

I have been saying, and continue to say, if we do not call, e-mail, write to those who are making these decisions we will get the short end of the stick AGAIN!

DO NOT LIE DOWN AND LET THEM PASS LEGISLATION THAT DOES NOT TOTALLY ELIMINATE SCHOOL PROPERTY TAXES!! IF YOU DON’T FIGHT NOW….YOU ARE GOING TO PAY LATER!

If special interest groups can get the attention of the Senate….so can we! We should call our special interest group "TRUMPP" (Tax Reform for the Unheard/Unappreciated/Unrepresented Majority of Pennsylvania Property-owners). We hold the "trump card" come election time and we are a voice to be reckoned with! Which "U" are you?

For e-mail lists of Representatives and Senators contact http://www.nopropertytaxes.com/