Lehigh County Controller Mark Pinsley, who's always running for something, always needs to have a cause du jour. In 2024, when he just happened to be running for state auditor general, he was the Pied Piper of dozens of families complaining about the overdiagnosis of medical child abuse. That's why Lehigh County no longer has a child advocacy center. Now he wants the county to impose a "progressive revenue option that he calls a wealth tax.
His proposal, which you can read for yourself here, claims it is "consistent with the Pennsylvania Constitution." He's proposing a 0.4$ tax on stocks, bonds, mutual funds, exchange traded funds, brokerage investment accounts, partnership owner interests, passive business equity and pretty much everything that's not nailed down or hidden under the mattress. He proposes to exempt primary residences, checking accounts, 401ks, household savings used for normal expenses, small businesses and family-owned farms.
Before this even gets out of the gate, I believe this will fail because it is likely illegal.
In 1831, an intangible "wealth" tax was imposed in Pennsylvania, under which the state collected tax on ontangible property and turned it over to the counties. But the Pennsylvania Supreme Court invalidated this tax to the extent that it ran afoul of the Commerce Clause. By 1988, no counties were levying this controversial tax. The state legislature has since repealed the intangible personal porperty tax and expressly prohibits counties from imposing it. Ryan Mackenzie, then a State Rep. was one of the sponsors of that legislation.
So, like everything else that Pinsley proposes, it is much ado about nothing.
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