As I've grown old and demented, I've come to realize that absolutism is a principle best left to Socrates. I've come to see the wisdom in tax incentives to encourage the revitalization of Bethlehem Steel's south side brownfield. I was even persuaded by Chrin's TIF in northern Palmer Township, which holds out the promise of 5,000 jobs. So I certainly would support a tax break that might benefit a blue collar Bethlehem worker as opposed to a blue blood who flies in from Florida or California.
In the story below about the LERTA proposed in a blue collar Bethlehem neighborhood, that tax break might provide a helping hand for someone looking for a place to raise his family. If we hand out money like candy to those who are already wealthy, doesn't fairness dictate that we help blue collar homeowners as well?
Hayden "the Colonel" Phillips rightly expressed some concern about the government picking winners and losers. My view is that a good business idea will come to fruition without any help, and a bad one will fail no matter how much public largesse is invested.
But the government has already picked the middle class to fail. Its own policies over the past two decades have resulted in a shrinking middle class.
Though this proposed LERTA will benefit non-resident landlords, it will also make home ownership a little more attractive to a young couple who presumably would want to raise their children near a school.
Strong neighborhoods make strong cities.
15 comments:
Colonel Clunker is fine with a 10% real-estate tax increase when his 20% plan failed. So now he is a conservative? The guy is just another BS artist. This county council talks a lot about what is right and wrong but so far all they have accomplished is a hefty tax increase. Of course they will tell you all the benefits of that tax increase will happen If you re-elect them.
Just say NO!
Bernie,
Middle Class poverty can be exemplified by the monthly sheriff sale listings, often more than 20 pages in length. It's the property tax that destroys senior homeownership.
the cause of this problem is easy to see - apartments
Why not eliminate the property tax and have a tax incentive for all, make the whole state attractive. The government would rather keep the tax and hand out incentives to whom they choose.
LERTA is no big deal. It has been around since the 70s. Lots of boroughs, townships and cities have them. Some have multiple zones.
"Why not eliminate the property tax and have a tax incentive for all, make the whole state attractive. The government would rather keep the tax and hand out incentives to whom they choose."
Actually, a real property xis much more fair than many alternatives. Tax it where it is located. Sales taxes are regressive and income tax is something people can just move away from. I would reform property taxes by exempting certain classes. I would reform the uniformity cluase to llow for both graduated income and real estate tax. Also, school district administration is too cumbersome and I would create efficiencies by consolidating school districts.
"Middle Class poverty can be exemplified by the monthly sheriff sale listings, often more than 20 pages in length. It's the property tax that destroys senior homeownership"
Lehr mentioned this in her presentation. She provided a pretty picture with red and green dots, but no hard data. I'd prefer the data to pretty pictures.
"Colonel Clunker is fine with a 10% real-estate tax increase when his 20% plan failed. So now he is a conservative? The guy is just another BS artist. This county council talks a lot about what is right and wrong but so far all they have accomplished is a hefty tax increase. Of course they will tell you all the benefits of that tax increase will happen If you re-elect them."
This is about an issue, not politics. You are making no arguments. You are just attacking people. This is no way to win an election. If that is your strategy, you fail. Tell me how many Dem Council candidates were at any of the national nights out, meeting and greeting residents? How many are out there, knocking on doors? That is what wins elections, not anonymous and mean-spirited insults on a blog.
Just asking, but who makes up for those lost revenues if a tax cut is granted ? Someone else needs to make up that difference correct?
2:53 it isn't a tax cut, can you understand english? i though the blog writer was very clear on hoe this works
When wisdom comes, though it may come late it should always be embraced. BO hits it somewhat rightwith modifications: Consolidate school districts (Awfulbach then a senator had a bill to make it 67 counties from the current 501, reasonable). The uniformity clause has already be side stepped by the legislature==when they passed their huge gas tax/ostensibly road repair bill they treated leases and rental cars as a class differently--they are taxed at 9% sales tax instead of 6. So perhaps other sales tax items in addition to expanding the scope of services. Graduated income tax would be a non-starter in PA and is anti growth as LLCs and S corps pass through pay the reall low 3+ rate. Raise it to 4.75 or 5 gradually and all money dedicated to fund schools. The Commonwealth could also incentivize municipal consolidation. One can protect the citizens through district elections but do we really need Glendon, West Easton, Wilson, Easton, Forks, Williams all to have the bureaucracy they do? U could create regional municipal governments which reduce propert taxes, ensure uniformity of service and district represenation with at large seats.
The property tax is an antiquated anachronism of the agrian age. Only municipal bond sales persons love it. Probably the end result if the Assembly and Governor were serious is a combination of the aforementioned. But bet the house, this never happens....
Just asking, but who makes up for those lost revenues if a tax cut is granted ?
For the school district portion, that would be mostly be the residents of Hanover and Bethlehem Township. For the county portion everyone other property owner in Northampton County.
Someone else needs to make up that difference correct?
Absolutely, and Bethlehem is contributing a much smaller percentage or the lost revenue(10% vs. 50%) than the BASD and Norco.
Very well put.
A few common sense points:
The idea that a LERTA is going to save the middle class is ridiculous. Even more so is the implication that a LERTA will do something about "middle class poverty" and foreclosures. Those struggling or being foreclosed on don't have the money to put into home improvements, and foregoing a percentage of whatever slight increase in tax that a "new roof or front porch" generates isn't saving anybody.
For those advocating school district consolidation - be careful what you wish for. Larger districts seem to have the most problems and become bureaucracy-bloated money pits for taxpayers. In short, they cost more and deliver an inferior product. If anything, people should be looking at whether breaking up larger districts leads to better learning.
To the genius who wants to raise the PA earned income tax, do we really want to send more money to (and put more of our local kids' education under the control of) the state? Last I checked they're almost 2 BILLION in the hole. Do you really think that any tax increase is going to go to the schools? Or are you using the age-old refrain of tax hikers everywhere by claiming that "it's for the children".
The best thing that any government entity can do is reduce the tax burden for all residents. If Bethlehem wants to give back to a chosen few via a LERTA, that's their choice. But County Council should unanimously reject participating in this scheme. If they want to give back to residents, do it for all and lower the COUNTY property tax.
To the city....stop allowing conversions. Encourage home ownership, otherwise, you'll turn the Christmas City into Allentown.
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