SCRANTON TIMES-TRIBUNE Editorial: …Mr. Corbett, while campaigning in 2010, infamously signed the “no new tax pledge” that was demanded of conservative candidates by Americans for Tax Reform, led by Grover Norquist. Many members of the conservative majorities in both houses also signed it.
That ideology led to damaging public policy, most notably making Pennsylvania the only gas-producing state that does not levy a severance tax…
Now that Mr. Corbett and his allies have discovered that they can’t balance the budget by ruthlessly slashing alone, it’s time for them to send to the shredder whatever remains of their foolish pledge to Mr. Norquist… (more)
EDITOR: Corbett has tried to mask his big tax increase on gasoline by saying it was on wholesalers, not consumers. Of course prices at the pump immediately jumped the full amount. We don’t object to the tax; just to the hypocracy.
Corbett has significantly reduced taxes on business while withholding desperately-needed funding from local school districts.
This means that local property owners are stuck with significant tax increases, while Corbett blames local school boards for raising taxes in order to pay for ever-increasing State unfunded mandates (like salvaging the PSERS retirement fund which the State has grossly mishandled for a decade and a half).
The “no tax increase” stance is a very good idea. Since PA has a flat income tax its revenues should rise and fall with the good fortune of the taxpayers and there should never be a need to adjust the formula.
Unfortunately, the politicians feel they must micromanage the tax program, usually to feed their special interests and so people feel they need additional taxes when what they really need is better spending allocations.
Personally I love the gas tax. It puts the burden on the people using the service. And, as an economics major, you should know that the tax will be borne by whichever group has the less elastic curve – supply or demand side, so the tax might be on the suppliers ( although it doesn’t feel that way).
I especially agree with the first comment above about the PSERS (Public School Employees’ Retirement System). NONE of the Democratic gov candidates seem to address that issue during the F & M debate, except Schwartz who now says it was a mistake. A good first step would be for PA to tax pensions as they tax 401K distributions.
Nothing new here. What Newslanc calls “Corbett’s hypocrisy” is consistent with all politicians. Taxes can only be paid by consumers. Taxes paid by businesses are business expenses ultimately paid by the consumer. It is only through the ignorance of the average American, kept in ignorance by the media, that the hypocrisy continues.