School Tax Referendums

The Philadelphia Inquirer is the first PA newspaper that I have seen to endorse a “Yes” vote on the Act 1 tax shift (I have seen several endorsing a no vote). Their reason is that the income tax is a better (or “less bad” tax). However, they seriously mischaracterize one aspect of the Act 1 shift:

Renters, as well, will feel the pinch – although, realistically, they’re already paying property taxes built into their monthly rents.

There is no doubt that renters do pay property taxes through higher rents, but under Act 1 they get no relief. Rental properties get no property tax relief under the Act 1 shift, so renters will pay higher income taxes and get no relief from property taxes in their rents.

Dimitri Vassilaros has more on the faux of tax relief promised under Act 1 in the Tribune Review.