HB76 deserves to be Campioned

By Andrew Basile

Poor Leadership is the greatest obstacle to the passage of HB/SB76. The bills remain trapped in committee because State Legislators would rather play politics to further their own political ambitions than do the will of the people. If you support Property tax Reform, then you need to support new leadership. I will not only lead, I will champion this effort.

These bills provide for the elimination of the local school property tax and substitute it with an increased income tax and sales tax. In many suburban and rural areas like Berks County, Real Estate taxes have increased dramatically, far outpacing inflation, and people's ability to pay. The consequences are severe: farmers selling large swaths of agricultural and woodland for development; businesses relocating to lower taxed areas (many out of Pennsylvania entirely); seniors on fixed incomes forced to sell homes they have lived in most of their lives; and new homeowners giving up on the dream of purchasing their first home because they are unable to meet the rising costs of homeownership. Most recently, during this economic recession, rising property taxes have been the mechanism actually pushing many homeowners into foreclosure.

HB76 and SB76 would broaden the tax base to include not only all wage earners in PA but also those who visit the state to conduct business or for tourism. It would relieve the largest portion of the tax burden of homeowners of all demographics and economic brackets by reducing their monthly escrow payments, allowing them to keep more, and spend more of their income, thus spurring economic growth. Further, by making housing more affordable for everyone, new buyers could enter the market creating demand for housing - new and existing, increasing property values of homes across the state.

As a Real Estate developer, broker, and small business owner for over 20 years, I understand the negative impact property taxes have on personal wealth, home ownership, and job creation. Over the years I've met with David Baldinger, leader of the PA Taxpayers Cyber Coalition and one of the true leaders of HB/SB 76. I understand the mechanics of this bill and the economic benefit waiting to be un-leashed. It's an initiative I have advocated and lobbied for since 2006. And although not a Republican or Democrat issue, it is important to note that we currently have a Republican House, a Republican Senate, and a Republican Governor who all claim to "support" the elimination of property taxes.

Why then, has it not happened?

Is it because the bill can't pay for itself- that the "numbers don't work" as some claim? Is it because school districts will receive less money once the bill is passed? Is it because it increases taxes for people overall and jeopardize the value of one's home?

No, No, and No. The legislation is in full fiscal compliance with the financial analysis conducted by the Pennsylvania Independent Fiscal Office (IFO) released October 1, 2013. Further, all schools are fully funded dollar-for-dollar for the total amount of local taxes eliminated. And last, according to the IFO, the elimination of school property taxes increases the disposable income of property taxpayers and will actually increase home values, on average, by more than 10% statewide.

So if schools get the same amount of money, the bill is tax revenue neutral, people will keep more of the money they earn, and home values will rise increasing everyone's net worth, why hasn't this bill been brought out for a final vote and passed into law?

The answer, quite simply, is Leadership - Party Leadership.

Lawyers, teacher unions, and other special interest groups are strongly opposing these bills and as a result, they currently remain stalled by a select group of individual legislative "Leaders" who have been the beneficiaries of political contributions by those same interest groups. Unfortunately for the rest of us, certain elected officials who "support" our cause (the elimination of property taxes) do so in name only. That's not leadership - that's just politics.

True leadership is championing a cause. It's standing up to those who are only interested in the status quo because its serves their political self interests. It's fighting for those people who elected you to be their advocate. It's sticking up for your friends, your neighbors, and your community and doing everything possible to improve their lives. It's putting their interests above your own political ambitions.

If a legislator truly wanted HB76 to pass, he or she wouldn't just say they "support" the bill and "vote" it into an endless cycle of committee analysis and studies, but rather ACTIVELY ADVOCATE for it. You would relentlessly engage those who have not "signed on" in BOTH political parties to demonstrate to them why it is not only in the best interests of their constituents, but also in the best interests of the Commonwealth of Pennsylvania.

Most importantly, you would not vote into "Party Leadership" the very gatekeepers trying to kill the very bill you "support" so much.

You see, true leadership is championing a cause. Its standing up to those who are only interested in the status quo because its serves their political self interests. It's fighting for those people who elected you to be their advocate. It's sticking up for your friends, your neighbors, and your community- and doing everything possible to improve their lives. In the end, it's putting their interests above your own political ambitions.

The elimination of School Property Tax is the single most important issue our legislature should act upon. It would be the greatest stimulus to our economy, to our communities, and to our collective personal wealth. If our legislators accomplish nothing else, it should be this historic initiative alone.

You want to create jobs? Pass HB76 and give small business owners the chance to reinvest those tax dollars into growing their business and create new jobs. You want farmers to keep their lands? Pass HB76 and allow them to invest those dollars into new farm equipment and livestock. You want seniors to be able to stay in their homes and not live in fear of foreclosure? Pass HB76 and enable them to allocate their fixed incomes towards heating their houses and purchasing much needed medicine rather than paying the government to keep a home already bought and paid for. You want to do something that makes sense? You don't repeatedly vote into power the very people who prevent this from happening.

In Harrisburg I will not be satisfied merely being a cheerleader in the background on this issue. I'm not afraid to reach across the aisle and I'm certainly not afraid to push the leadership of my own Party to get the job done. When I serve as your Representative, you will know exactly what I'm doing in Harrisburg to move HB/SB 76 over the goal line.

You want to eliminate the School Property Tax - Eliminate the Party Leadership. Replace the legislature with champions who have the political courage to serve those who elected them, not merely the political ambition to serve themselves and those they're politically beholden to.

Doing anything less just "leads" to more of the same.