As I am sure everyone knows by now Ed Rendell wants to increase the PA state sales tax (along with other taxes and also borrow money, just to create a larger government) to 7% from 6%. He only told half of the story yesterday, as usual. So here are the real numbers when calculated fully!
According to the IRS table the PA standard sales tax is $596 for a couple making between $50,000 and $60,000 Follow this link for your own calculation (http://www.irs.gov/individuals/article/0,,id=152421,00.html).
So $596 divided by 6% = $9933.33. This is the estimated amount of taxable purchases per year.
If we again spend $9933.33, but this time it is taxed at 7% we will be paying ($9933.33 times 7%) $695 in sales tax.
According to Rendell’s statistics less than one-third of the amount will be going toward property tax relief, the rest will be to pay for more government! So are you willing to pay $100 more a year in sales tax to save $33 a year on property taxes!? That is the real question. In other words, for every $3 you spend on sales tax you will save $1 on property tax. This makes no sense. Now, if Rendell was raising the sales tax and completely eliminating property taxes, then you would have real reform. All he wants to do is shift taxes around and to create a bigger government.
***Note, these calculations do not take into account large purchases, such as cars, homes, boats, tractors, etc. which would increase the amount of sales tax you pay. ***
Wait a minute….didn’t we just legalize gambling in PA to provide property tax relief? What happened to that? Exactly, part of the money is going for property tax relief and the rest is going to bigger government.
It is time for a change. PA is losing jobs, workers, and market freedom (Rendell also wants to limit hand gun sales among other things, but that topic is for another day). Government needs to be cut in half and the free market forces need to be able to balance the supply and demands of the economy without government interference.
Write to all of your representatives and demand that taxes are not raised and no new taxes are created. Stop wasteful government spending and eliminate unnecessary programs and lower taxes before it is too late for all of Pennsylvania.
Alot to think about today!