The following is an open letter to the state Senate:
The state House of Representatives passed the Stop Primary Residence Protection Plan to completely abolish the corrupt property tax. It now sits in the Senate waiting for cowardly senators to act on it and put it out for the sheeple to vote on it. Below is the answer to Pennsylvania’s financial crisis.
Would a $24 billion infusion of economic activity (at no cost to government on any level) boost Pennsylvania’s stagnant economy?
There is $8 billion sitting idly in tax escrow accounts in banks all over Pennsylvania. Banks pay no interest on the $8 billion, so this idle money gains the depositor (homeowner with a mortgage) absolutely nothing.
Banks cannot lend the money, so it generates no economic activity in the marketplace; and banks don’t benefit either. It just idly sits there waiting until yearly property taxes are due on homes. Then the banks forward the money to the counties, school districts and municipal governments.
Economists say money reverberates through our economy multiple times. We used three times (a very conservative estimate) to arrive at the $24 billion in economic activity that would be occur if the $8 billion in tax escrow accounts was no longer required from those with home mortgages.
If there were no property tax escrow accounts, home owners with mortgages would pay only the principal and interest on their mortgage plus homeowners insurance, cutting their monthly “house” payment by multiple hundreds of dollars.
More people could keep their homes.
More people could buy homes greatly boosting the housing market. More people would improve their homes.
More young people would establish their home for their families in Pennsylvania rather than some other state
More seniors (retirees) would remain here, keeping their accumulated wealth here, too.
Greater population would attract more businesses to serve them.
Tens of thousands of permanent jobs would be created in the private sector with no need for governmentally funded, so-called “job creation” programs. Make-work governmentally induced jobs are often temporary — lasting only until the federal or state funding is no longer forthcoming.
More people working, plus more businesses, equals more tax revenue for schools, counties and municipalities.
More people able to purchase homes means revitalization of our suffering municipalities.
No more sheriff sales for “delinquent” property taxes currently based on phony, corrupt assessment figures stealing the homes and most, or all of the equity of 30,000+ Pennsylvania home owners every year.
No more countywide reassessments, which cost Pennsylvania taxpayers tens of millions of dollars.
Smaller government, since every county’s property tax assessment offices could be cut dramatically, saving taxpayers tens of millions across the state.
No more harassment of homeowners since there would be no more reassessment hearings.
The Lottery-Funded Property Tax Rebate program could be abolished, saving the lottery over $60 million per year, which could be used to provide more seniors with PACE coverage, or expanded Rent Rebates.
True home ownership would come to Pennsylvanians for the first time in our history, since we currently, in effect, only “rent” our homes from the counties, municipalities and school districts. Private property ownership rights is a basic component of our freedom.
How could this dream become a reality? First, if anyone tells you it can’t work, they are either misinformed or lying. They need only to check with the Legislative Budget and Finance Committee, which studied the STOP Primary Residence Protection plan and found abolishing all three property taxes on primary residences (homesteads/farmsteads) is fiscally sound and economically viable.
Schools, counties and municipalities would be fully funded with replacement revenue for the lost property tax revenue. Increased economic activity would mean even more revenue for the county and municipal governments and school districts than they are currently receiving.
During the eight years of Gov. Ed Rendell’s reign of error, 240,000-plus Pennsylvania families lost their homes and equity and he couldn’t have cared less. Will Gov. Tom Corbett be any better? Let’s hope and pray he will.
By Dom Lauro Upper Darby PA
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