In Philly, the same argument was made about the drink tax. It passed close to 10 years ago and the restaurants and bars are still going strong.

pd

So, let’s establish a few parameters for this post. Once again, a government entity faces a budgetary shortfall. Once again, said government entity doesn’t bother to examine any internal cause of said shortfall, yet seeks external remedy. Once again, Joe and Jane Average end up footing the bill for said shortfall because of said government entity’s inability or unwillingness to reform their budgetary practices. Ah, yes – this is “responsible governance”. I feel like I’ve seen this one before, and the ending is as unsatisfying as it was the last time. Council President Rich Fitzgerald, throwing himself before the mercy of the masses, claims Council “had no other choice”. That is akin to one facing an oncoming train and, seeing no credible alternative, standing ramrod straight. In the County’s case, the only thing that may end up flattened is it’s entertainment commerce. I suppose Mr. Fitzgerald didn’t bother to take note of the current dispute in Harrisburg over tolling a certain highway in northern Pennsylvania? If I’m not mistaken, aren’t some of those revenues supposed to “bail out” the regional MTA’s, becoming the “dedicated” source of funding for regional mass transit that everyone seems to be seeking? I suppose Council is a bit impatient? Also, County Executive Dan Onorato pledges that “serious reforms” of the Port Authority are in the works, but it seems Mr. Onorato is guilty of putting the cart before the horse. It appears that Allegheny County taxpayers are supposed to pay Mr. Onorato and Mr. Fitzgerald upfront for future concessions in future labor negotiations that aren’t even scheduled yet. That arrangement strikes me as a bit one-sided, no? Yes, I know – the county has held the line on property-tax increases for a number of years (as Mr. Fitzgerald repeatedly reminded us before breaking the bad news). My response was: “Yeah, and?”. The only reason Council and Onorato haven’t touched property taxes is the toxicity of the issue (it cost Onorato’s predecessor, Jim Roddey, his job four years ago, a fact not lost on the current occupant of the Executive’s chair). So, unable or unwilling to deal with the real issues driving the tax hikes (namely, the underlying structural issues such as labor contracts and discretionary spending in the county budget), they’ve resorted to jacking up so-called “nuisance” taxes such as the drink levy. Along the way, they’ve managed to tee-off nearly every restaurant and bar owner in Allegheny County, whether they be Republican, Democrat, or independent. Hats off, fellas. Cheers!

I would have to agree. The property tax freeze for 2000 helped Onorato gain recognition, but it hurt the schools system which relies on fair assessment. Now, the school directors come off as the figurative ‘bad guys’ as they need to raise millage because the assessments are held at 2000 values. Here is the ironic thing: I am completely for lower taxes and the elimination of property taxes. However, funding an inefficient government is not a sound business mentality and unfortunately, running a government is almost identical to running a business. Now, we tax specific sectors of business. One of the PF Changs investment partners made a good point: we are not making banks charge an extra $1.00 for cash withdrawals are we? No, because that sound ridiculous and so does this drink tax. The comeback: all the other cities do it. Great, because I never heard from my parents before that I all the kids jumped off a bridge, would you?

-citizen driven

As my parents told me time and again, “I don’t care what the other kids do: my only concern is you”. It’s infuriating to think that every time a government entity finds itself in a budgetary fix on their own making (which is often), they look to dip into the pockets of taxpayers (many of whom, in Allegheny County, are already strapped with enough taxes to begin with). It’s sort of cyclical, actually: state government can’t decide on how to provide the MTA’s with a “dedicated” source of funding (when one has been staring them in the face for nearly a year: privatizing the Turnpike), as they’re current embroiled in a state-federal feud over tolling a highway, which may provide the Commonwealth with revenue to pay back the bonds the state borrowed to bail out the regional MTA’s (editorial comment: I can’t believe this is my government). Left with no recourse (according to Mr. Fitzgerald), County Council, following the lead of the state and refusing to make any sort of meaningful structural reform, jacks up a tax that may very well be extremely regressive in it’s application (i.e., it may hit the smaller bars, or “watering holes”, harder than some of the major hotels and restaurants, but it’s impact will be felt regardless of the establishment). The most upsetting aspect of this whole thing (and I wonder if you agree, Citizen) is the fact that these tax hikes could have been avoided so easily, if Allegheny County and the state would’ve just practiced the “responsible governance” that both claim they’re engaged in now. Let’s face facts: when the county talks about the “costs” of the Port Authority, we’re really talking about labor contracts and retirement plans. That is what the county cannot afford. I’m certainly not against county employees getting a nice retirement package, but when one actually discovers what the Port Authority’s definition of “nice” is…well, you get the point. If the county had negotiated a “responsible” contact with the union in the first place, they wouldn’t be in the budgetary hole they find themselves in now. On the state level, if the General Assembly and the governor were able to think outside their government-centric boxes (something Pennsylvania pols don’t seem to do very well), they would’ve given privatization a chance and would’ve been handed the holy grail of “dedicated funding” for BOTH roads and regional mass transit, WITHOUT any tax hikes. Instead, taxpayers are forced to live with these Mickey Mouse tax and fee hikes that, as time progresses, probably won’t even be enough to cover the costs of government’s incompetence, at all levels. Wow, I need a drink…

I agree. The port authority is an inefficient system; most business models find ways to increase business. With state funding and local funding, even federal funding, do you really think they (PAT) care about profit? They are being taught that if they are in debt, they will be bailed out anyway. People are not using the buses or T; perhaps they should find out why and develop a sound business model that gets people on there.
What I don’t understand is that taxes are proportionate. Meaning, as sales increase, so does the revenue we bring in on sales tax. As home values increase, so does the money we bring in for property tax. As income increase, so does the amount we bring in for income tax. Hence, all money that is brought h in is consistent with a higher cost of living. Yet, we found newer taxes each year. You may ask why is this? Well, it is because we increase our expenditures at a greater rate then we increase our incoming revenue. Businesses go bankrupt on a method similar to Allegheny County.
Plenty of people showed up to protest the drink tax but the county council already made up their minds. That 10-4 decision was made a day before heading into the Tuesday night vote. It is easy to pass a tax when people do not care enough to get out in vote; it is our own faults. Soon enough, those on the Council will answer to the voters, and those who do vote, do not forget.

Live within your means not ours.