PITTSBURGH POST-GAZETTE EDITORIAL: One is the effort to reduce property taxes used to fund local school districts by increasing state sales and income taxes. There are competing versions of the tax swap, but they contain similar elements. Both a Republican plan proposed in the House and a Democratic plan in the Senate would use the money from both tax increases solely to cut property taxes, which makes them an easier sell. Mr. Wolf’s plan, by contrast, would set aside some of the new revenue for education funding while adding to the list of what is subject to the state sales tax, including college tuition, nursing home care and other services. Mr. Wolf should fold in favor of the better options proposed by legislators.
Other proposals would provide more money to address a budget shortfall and increase allocations for education. There are two big sources: Sale of the state’s liquor stores — a business that should have been put in the hands of private entrepreneurs long ago — and the imposition of a severance tax on Marcellus Shale drilling.
The Republicans are right to push for liquor privatization, and Mr. Wolf is correct to pursue a fair tax on drillers, but his current proposal is too steep. A straight 5 percent extraction tax is more reasonable. Given the Republicans’ plan for the sale of alcohol and the Democratic gas tax proposal, both parties can walk away winners, to the benefit of the state’s children… (more)
