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Our opinion: Sales tax increases are regressive

House Rep. Michael Sturla, D-Lancaster, is proposing one of the most brazen tax shifts we’ve seen in quite a while.

Sturla, with House Bill 678, wants to give counties the ability to levy a 1% sales tax, with the bill specifically targeted for counties like Warren County that don’t generate as much in property taxes as they used to because of an increase in tax-exempt properties.

Of course, what Sturla doesn’t tell you is one reason so much land in Warren County is exempt from property taxes is because the state has taken it off the tax rolls. Allowing Warren County, and counties that find themselves in a similar position, to levy a sales tax does nothing but shift the tax burden from the prior owners of state-owned land to you whenever you purchase goods in Warren County.

If Sturla really wanted to solve the revenue problems of counties like ours, simply make state-owned land taxable. Let the state pay for the land it has purchased like any other landowner. Making the state pay taxes on the land it owns might make the Pennsylvania Game Commission think twice before buying thousands of acres. Most people who are buying property think about what they will pay in yearly property taxes. State agencies do not.

Instead, they want cash-strapped counties to take more of your money, but instead of doing it in one fell swoop with a property tax bill, they want to take it in little bite-sized pieces when you buy groceries, clothes and other necessities. Let’s not forget sales taxes are the most regressive form of taxation because it hits us all equally regardless of income. That means those who are struggling lose a greater percentage of their monthly budget than do those who make more money.

Why would a Warren County resident support this bill? Yes, it creates a new revenue stream for the county. But it’s your money, whether it comes from the property tax or a sales tax. All Sturla really wants to do is take more of your money while telling you how wonderful it is that the state is going to help struggling counties balance their books. He doesn’t mention he’s balancing those books with your money.

Sturla’s bill has sat in a House committee for more than a year It should stay there.

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