Digging In Against All New Tax Increases
The Senate’s $571 million tax increase proposal contains many negative impacts for both families and job creators, but I’d like to address the most serious: the gross receipts tax on natural gas, electricity, and telecommunication services.
A Tax-Tax is Just the Start
The gross receipts tax is added to the total costs of production–and this is an important point–before the sales taxes are calculated. What this means is that you will end up paying a sales tax on the gross receipts tax. So if you purchase natural gas, you will be paying a tax on a tax.
But wait, it only gets worse. If your electric company uses natural gas to produce electricity they have to pay the tax on the tax and then turn around and add their own gross receipts tax on top of that. Then guess what happens? Another sales tax computed on the gross receipts tax. So for your electricity, you’re paying a tax on a tax on a tax on a tax!
Bad enough? You wish! Your telephone and cable companies use a lot of electricity for the cell towers and transmission stations etc. If they’re buying their electricity from a gas-fired plant they are not only paying for the four taxes you do, but now they have to add a gross receipts tax on top of that which, you guessed it, gets a sales tax on top of that! A tax, on a tax, on a tax, on a tax, on a tax, on a tax!
It Can’t Possibly Get Worse … Right?
Wrong! You bet it can! Your schools and local governments (offices, jails, courthouses, etc.) also will have to pay taxes on each of those services, with one exception: the final sales tax. So where do you think they are going to have to go to get the money to pay for all of those new taxes? You guessed it! Your property taxes, which are most likely going to have to go up.
Sounds pretty bad, right? It can’t go further … can it?
Of course, it can! After all, this is government we’re talking about!
For the final absurdity (and I’m trying to be kind here), all of our state government agencies are going to have to pay more for all of these utilities just like your local governments. I’ve run some preliminary numbers and figure the Department of Corrections alone will have to fork over an extra $3 million per year for their heating, electric, and telecommunications.
So, guess what your state government will have to do next year if the Senate’s tax increase plan goes through? Yep. Raise your taxes to pay for the taxes it has imposed on itself!
Digging in to Protect Our Taxpayers
Recently I participated in a Taxpayers’ Caucus hearing in York County, where one of the testifiers stated that he is glad to see a growing number of rank-and-file members, like those represented at the hearing, who are digging in.
We are digging in against the out-of-control spending, and we are especially digging in to get answers to the malfeasance, fraud, waste, and abuse. I’m glad to have found them, proud to serve with them, and, like that gentleman, happy to see our numbers in the Taxpayers’ Caucus growing.
If you haven’t seen much of me locally lately, it’s because I’ve been working with these members in Harrisburg to find the money we need to pay for this budget that I did not vote for. It’s law now. I won’t just throw my hands up and tell those who voted for it to fix it. Doing that only results in proposals like the one above.
My Promise to You
With 202 other members in the House, I can’t guarantee anything–other than the guarantee that I will work with those who are willing to try to find a solution—one that won’t leave our businesses, local governments, schools, people on fixed incomes, and you struggling to pay higher prices for the necessities of life and higher taxes on top of them.
Your prayers are greatly appreciated.