Our opinion: Less spending better than rebate
State lawmakers are trying, again, to create a nearly statewide tax increase deferment program for those who have lived in their homes for at least 10 years.
The program is similar to one that already exists in Philadelphia and Pittsburgh. It’s worth noting, though, that the program is only needed in those cities because those cities haven’t controlled their spending and, by extension, their tax burden.
We can’t argue with the idea that helping longtime homeowners stay in their homes in the face of ever-increasing tax bills is a worthy goal. We do take issue with the way Rep. Christina Sappey, D-Kennett Square, proposes to accomplish that goal.
First of all, deferring the tax bill on those who have owned their home for a decade or more fails to take into account that not all of those taxpayers need help. It’s taking a butcher’s knife to a problem that really needs a scalpel.
Second, deferring between 50% and 75% of the tax increases for these homeowners helps them, but it hurts everyone else by pushing more of the tax burden onto businesses and those who have just purchased their homes. That’s far from fair, particularly for newer homeowners who are likely paying higher property taxes than their older counterparts because the newly sold homes are assessed for more than homes that sold a decade ago.
Lastly, and perhaps most important, is the fact that programs such as the Longtime Owner-Occupant Program used in Pittsburgh and Philadelphia merely throw a bone to the squeakiest wheels while not requiring governments to solve its biggest problem – skyrocketing spending. Taxes wouldn’t increase if governments did a better job of living within its means. That means new programs should be created at the expense of programs that aren’t needed. Of course, those choices are difficult and often unpopular. So we just keep adding to the size and scope of government.
This is a time when we shouldn’t be following the example of Pittsburgh and Philadelphia. They should be cautionary tales. Lower taxes for all by controlling spending.