Officials denounce tax increase

Residents to vote on ‘Act One’

By TOM KANE

MILFORD, PA - The Commonwealth of Pennsylvania is passing the buck on finding a fair solution to the problem of how to fund schools, said Delaware Valley School District Superintendent Candis Finan.

The legislature has mandated, in a measure called Act One, that every school district put a proposal before voters at the May 15 primary to raise the personal income tax. They have also demanded that the district decide how much they must raise the tax. Delaware Valley has decided to put forward a referendum calling for a .9 percent increase in the personal income tax.

Subject to the tax are estimated household incomes as reported on a residents’ Annual Pennsylvania Income Tax return, which includes all salaries/wages, interest, dividends, partnership and rental income.

The tax increase will be used to give tax breaks to low-income groups, such as senior citizens.

“The money will go to Harrisburg to be redistributed to lower income wage earners,” said Harry Forbes, chairman of the Pike County Commissioners. “It’s not tax relief. It’s a tax shift. This is totally ridiculous. Why should I have to pay for somebody else’s children?”

“This act doesn’t benefit the school at all, but merely some people of lower income,” Finan said to commissioners at their meeting on March 28. “It puts another burden on residents who have worked hard. It’s a third tax in addition to the county tax and the school tax.”

Finan computes that 80 percent of Pike County residents will be affected by this tax increase if voters pass the measure. People who work outside the county must also pay the tax if it passes, she said.

“There is no system in place to collect this tax,” she said. “Not only does Act One not benefit our school district, but it’s going to cost us a lot to manage it. About $75,000.”

“If you’re going to do tax reform, then do it right, not like this,” Forbes said.

“It’s an instance where Harrisburg is trying to manipulate something for political purposes to the detriment of county residents,” said commissioner Rich Caridi. “It’s supposed to give property-tax relief. This does not do that. It’s politics at its worst in Harrisburg.”

“I have to worry about my district, not the larger problem of how to fund schools,” Finan said. “The state should solve the problem, not pass the buck to school districts.”