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State needs temporary tax hike

4 min read

As Pennsylvania’s budget impasse regrettably heads into its eighth week, it becomes clear the $3.2 billion gap can be dealt with one of two ways: a temporary tax increase or deep cuts in state funding that are likely to be permanent. It is dawning on constituents, as well as local governments and school districts, that a “no new taxes” stance is not just a faceless motto; it will adversely impact their lives and fiscal operations. Recent news articles drive home this point:

n Community Action Southwest laying off its entire Pre-K Counts staff in Greene and Washington counties, depriving 3- and 4-year-old children and their parents of the benefits of a worthy educational program.

n School districts in Fayette, Greene and Washington counties missing their first state subsidy payments of the new fiscal year

n a figure that amounts to $1.3 million for Albert Gallatin Area School District and $689,000 for Central Greene School District, as examples. This shortfall is forcing many school boards to take out tax anticipation loans to cover fixed expenses, at an additional cost ultimately borne by local taxpayers.

n Counties finding it impossible to fully fund Children and Youth Services, Domestic Violence Services and other state-subsidized programs, with Greene County Commission Chairwoman Pam Snyder predicting that, “Our fiscal house could be wrecked” if Harrisburg doesn’t come through soon.

n Approximately 172,000 college students held in limbo, not knowing how much financial aid they will receive, because hundreds of millions of dollars in tuition grants are unavailable.

As the budget stalemate drags on, citizen ire and frustration deepens, which is completely understandable. But in tough times like these, sloganeering will not put preschoolers back in the classroom, political posturing will not give school districts adequate funding, and continued inaction will not keep counties’ fiscal houses from tumbling down.

While it may sound appealing to some, I do not believe the “no new taxes” stance taken by Senate Republicans is practical or responsible. It is one thing to cut out the fat in a budget; it is quite another to obliterate the muscle and slice into the marrow of the bone. Worse yet, we should all shudder at the prospect of what such an austere budget would mean down the line – for it is likely that such deep cuts, once instituted, would never be fully restored.

As constituents contact me urging an end to the budget stalemate, I remind them that three months ago, I was willing to vote for a small but temporary increase in the state personal income tax in order to avert this situation and pass a budget on time. I was perhaps one of only a dozen state legislators who made that stand public knowledge – not because I am a fan of new or higher taxes, but because that was the best solution to keep state workers paid and worthy programs running without interruption.

I believed that a small but temporary increase in the state personal income tax, which would cost the average taxpayer approximately $4.64 per week – about the cost of a convenience store hoagie – was the fairest and most responsible way to weather the current economic storm. It is worth noting that a similar prescription was followed with success during downturns in 1983 and 1991, with no long-lasting ill effects.

While I appreciate the feedback and concern of constituents worried about how the loss of state revenue will negatively impact their lives and local tax burden, I cannot dictate what 202 other members of the House and 50 members of the state Senate do.

Nonetheless, I will continue working hard to resolve this difficult issue with a minimal amount of pain to those directly affected, although I maintain that the staunch “no new taxes” advocates are not acting responsibly.

Rest assured that I am as interested as anyone in getting a new budget passed. But Pennsylvanians should know that examined from any angle, the real choice comes down to a temporary tax increase or permanent program cuts.

State Rep. Bill DeWeese, D-Waynesburg, is majority whip of the Pennsylvania House of Representatives and represents all of Greene County along with parts of Fayette and Washington counties.

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