Rendell Moving to pull a Fast One

PA PowerPort Electioneering has shifted into high gear in Pennsylvania this spring. It started by Governor Ed Rendell (D - Philadelphia) naming May "Older Pennsylvanians Month". But, Rendell's slick political maneuvering as not ended with naming rights to months, but has encroached upon taxation. With plans to cash in on Pennsylvania's future slots and gaming industry, Rendell announced what he refers to as tax break for all Pennsylvania homeowners. However, with a closer look at the bill that Rendell is advocating it becomes apparent that those tax breaks are targeting PA's powerful voting constituency: senior citizens. Rendell explains the plan:

“This plan will assure that maximum relief goes to communities with the highest property taxes and least ability to pay those taxes. Gaming will likely bring in as much as $1 billion per year when fully phased in, and this money will allow us to provide the largest property tax cut in Pennsylvania history. “We are also reforming how school taxes are set. This bill ensures tax rates are fair and gives the voters a voice in large tax increases. In addition, it enables school districts to decrease their reliance on property taxes and shift to a fairer tax base – a local income tax.”

So who exactly has higher taxes and less income? The answer is simple: senior citizens. The plan allows for higher local income tax (up to 3%) to replace property taxes. Who does this hurt? Younger Pennsylvanians, recent college grads, perhaps even those returning from serving our country in the military. How does this hurt them? Higher wage taxes means less disposable income to direct towards investments in their future or purchasing a first home. Ed Rendell plans to invest my tax money in his reelection by courting PA's largest voting audience with tax relief and other niceties. Conversely, GOP gubernatorial candidate Lynn Swann proposes true tax cut for all Pennsylvanians through fiscal responsibility and the curbing of spending and cutting taxes on business that create jobs in PA and thus make PA's economy more robust.