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  • WHY we need a plan

    Zero homes should be lost due to unpaid school property taxes
    • But, today 10,000 Pennsylvanian's lose their home each year!
    • A Sherriff's (tax) Sale robs dignity and equity from PA's residents
     
    School taxes should be funded fairly and match ability to pay
    • But, school taxes today are unfairly based on property value (as if it is a source of income like the 1800s)
    • A senior receiving 'Social Security' as their only income should never face a choice between a $2500+ (average) school property tax and losing their home
     
    Schools should receive full funding (now and future) automatically without raising tax rates
    • But today, tax rates are raised yearly by school boards to accommodate inflation
    • Schools face 'unfunded mandates' from the state
     
    (now click "How?" below)

  • HOW a well-formulated plan should work

    It should leverage a sales tax because it
    • is stable (The 6% sales tax has remain unchanged since the 1970s)
    • is based on ability pay
    • grows with the state economy
    • is Collected locally to ease worries about Harrisburg holding/mis-using funds
    It should use an income tax because it
    • is relatively stable (rising only 0.77% since 1971)
    • is based on ability to pay
    • grows with the state economy
    • is collected locally to ease worries about Harrisburg holding/mis-using funds
    It should be equitably spread across as many people as possible
    • Out-of-state visitors lessen the burden of PA residents (via sales tax)
    • Retirees should pay less than they do in school property taxes (or they'll lose their homes or leave)
    • But, working class should not shoulder all the burden (or they'll leave and take their tax revenue with them) 
    • Renters should see a reduction of the portion of school property tax they pay in their rent
    (Now click "What?" below)

  • WHAT this plan does

     

    This plan completely eliminates $16B of School Property Taxes in favor of $16B in revenue from increased/expanded Sales/Income taxes.
     
    +2% local Sales Tax
    • Total rate from 6% to 8%
    • The tax is collected locally, does not pass through Harrisburg
    • Generates $4.26B (of the needed $16B)
    +1.85% local income tax
    • Total rate from 3.07% to 4.92%
    • The tax is collected locally, does not pass through Harrisburg
    • Generates $9.17B (of the needed $16B)
    + Some retirement treated as income (why?)
    • Taxed at income tax rate, but
      • NOT Social Security
      • NOT Contributions already taxed (to IRA, 401(k), 403B, etc)
      • NOT Pensions 'in lieu of' SS (like State Police, up to SS max)
      • NOT Railroad Retirement benefits
    • Seniors pay 50% less (collectively $3.4B paid drops to $1.49B)
    • Generates $1.49B (of the needed $16B)
    +2% for non-WIC/SNAP Food & Clothing
    • WIC/SNAP food is always exempt
    • Generates $0.95B (of the needed $16B)
     
    Other Benefits:
    • Renters will see a 1-time reduction in rent (if it increased over the last 5 years due to school property tax)
    • The new sales taxes stay local (and do not pass through Harrisburg first)
    • Creates a $500m fund for school districts who run into financial distress, to serve as lender of last resort
    • School districts are prevented from re-instating a property tax
    • Schools will get dollar-for-dollar funding for 3 years as they transition to the all-local sales/income taxes
    • Schools get yearly funding increases without needing to raise the Sales/Income tax rates
    • 80% of the tax revenue now comes from working families (80% of the state population) making it fair