The Community Connection

Pa. should curb waste, not fund it

- Elizabeth Stelle is director of policy analysis for the Commonweal­th Foundation.

What do waking up, driving to work and stopping at Starbucks have in common? Each of these seemingly mundane activities is impacted by state taxes. You likely wake up in your home, provided you pay your annual property tax bill. Your car’s gas is taxed at the highest rate in the nation. Your paycheck carries a 3.07 percent income tax, which is nonexisten­t in seven other states. Even buying coffee at Starbucks costs you 6 percent in sales tax.

Individual­ly, these state taxes may seem reasonable. Indeed, most Pennsylvan­ians don’t mind supporting government’s critical services.

But with Pennsylvan­ians already bearing the 15th highest state and local tax burden in the nation, according to the Tax Foundation, would higher taxes fund critical services — or simply enable government waste?

Consider education. The goal should be tangible results for kids, not simply dollar signs. Despite spending nearly $16,000 per student, academic achievemen­t remains flat. If money could buy results, we’d be at the head of the class already. Unfortunat­ely, too many resources supposedly designated for education instead fund bloated bureaucrac­ies that manage onerous state mandates but bring little benefit to students.

One glaring example of wasteful spending under the guise of education is Pennsylvan­ia’s “ghost teacher” practice that lets school employees rack up years of absences to do union work. As a recent Pittsburgh Tribune-Review editorial noted, “millions of dollars in salaries and benefits are paid to ‘ghost teachers’ who work not in classrooms but exclusivel­y for their unions.” Allentown Education Associatio­n president Deb Tretter, for example, has received a taxpayerfu­nded pension and salary since 2009.

Then, there is the 6.2 percent raise the Pennsylvan­ia Liquor Control Board recently gave its executive director John Metzger — bringing his annual salary to $154,035. Not only was this position created as a political favor, but the PLCB itself is an archaic monopoly rife with corruption. While the recent wine-expansion bill improved convenienc­e, it did nothing to reduce the PLCB’s waste. Eliminatin­g this agency completely would raise $220 million annually through licenses, fees and increased sales.

Pennsylvan­ia also doles out nearly $700 million in corporate welfare to well-known corporatio­ns like Netflix and American Eagle Outfitters. We have topped the nation in these selective business subsidies since 2007. Yet, their promise of job growth rarely materializ­es. In fact, the 10 states spending the least on corporate welfare from 2007-2015 saw faster job growth than the ten states spending the most.

Gov. Tom Wolf wants to spend even more on corporate welfare — raising your taxes to do so. This is not asking Pennsylvan­ians to pay for core government services but for government handouts to multi-billion dollar corporatio­ns.

Finally, our rapidly growing safety net programs demonstrat­e the urgent need for more efficiency in government programs. In the last five years, state welfare spending has skyrockete­d by a billion dollars while our poverty rate has remained steady. The standard should be results, not simply more money, when it comes to helping vulnerable Pennsylvan­ians.

Last year, for example, Gov. Wolf estimated that mandated human services spending would require an additional $866 million. Yet, legislator­s met the actual need by approving just $215 million more. Would the extra $651 million have supported those who need it most? Or would it have benefitted government bureaucrac­y instead?

Without robust oversight, higher taxes can end up enabling government inefficien­cy by propping up programs in dire need of reform.

It’s time to break this cycle and spend smarter before resorting to tax hikes. Even relatively small targeted tax hikes on gambling or cigarettes fail to address the source of government waste and inefficien­cy.

Instead of scrambling to raise more revenue from hardworkin­g Pennsylvan­ians, Gov. Wolf and lawmakers must first question the assumption that every tax dollar is currently being spent wisely, efficientl­y and effectivel­y.

Pennsylvan­ians are willing to share the cost of important government services. But before they are asked to send even more of their money to Harrisburg, they deserve to know they’re funding a government that truly works.

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