“We cannot afford to roll back services and pass those costs on to local property taxpayers” – Sharon Ward Director – Pennsylvania Budget and Policy Center

Ed. note: A “revenue enhancement” = TAX!

Unfortunately for the average citizen, if that organisation and the other ones walking around the state capital in recent weeks have their way, the “local property taxpayers” will be the ones footing the bill.  Yesterday, the Pennsylvania Budget and Policy Center called on the State Legislature to avoid cutting programs because it would hurt the ordinary tax person.  Instead they encouraged the use of “revenue enhancements” to fill holes in the budget.  Given the projected multi-billion dollar revenue/spending disconnect I wonder where the money will be coming from.  It seems likely that “local property tax payer” will be the one paying for all this with increased state taxes.  Some would argue that taxing businesses is a better alternative.  The taxpayer is still going to have to pay, this method just makes that fact a bit less obvious .  In order for companies to exist they need to make money, so they’ll just pass the cost of more taxes along the line to the consumer.  Given that we are one of the lower performing states as in economic terms, raising taxes on a already over-taxed industry will just provide more incentive for businesses to leave PA.  Any way you slice it, not decreasing spending is going to result in a multi-billion dollar gap in the budget.  Though decreasing spending is a difficult process it is an economic necessity, because the ordinary tax payer really can’t afford “revenue enhancement”.

The Commonwealth Foundation is tracking the current budget issue.  You can find them here.

You can also read the complete press release from yesterday’s rally here.