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Is this what you would call true tax reform...
For gambling, it's bait, switch
Published: October 27, 2009
Back at the beginning of this decade, proponents of slot machine gambling in Pennsylvania pitched it as a means to save the state's rapidly declining horse-racing and breeding industry.
Even then it wasn't clear why the state should have to save that industry, but such issues quickly proved to be beside the point.
Once gambling gained traction in the Legislature it became politicians' all-purpose answer for an array of problems. Not only would it ride to the rescue of equine industries, but fund massive property tax reductions, economic development statewide, tourism and budgetary stability for host counties and municipalities.
Politicians who ardently advocated gambling realized that they couldn't sell it as the salvation of horse racing. They needed something broader based, and heavily promoted gambling's potential to reduce local school property taxes, statewide, by $1 billion a year or more.
So the slots law was crafted with a formula that dedicated 34 cents of every dollar lost by gamblers to property tax reduction. Another 12 cents went to save the ponies; a nickel was steered to economic development and tourism promotion; and 4 cents went to host counties and municipalities.
Casinos keep the remaining 45 cents.
So far the state is on track to deliver the projected property tax relief. The first distribution in 2008 totaled $660 million, and the total increased this year to $770 million. It likely will reach $1 billion or more when all of the approved casinos open.
Having successfully rolled the dice, lawmakers now plan to abandon the rationale by which they justified gambling.
The budget deal that was announced last month envisions gambling as the means to fund the state government itself, rather than to bolster horse racing or reduce property taxes.
If passed, the deal would draw $50 million from the fund for horse breeders. And it would establish table games at casinos, optimistically projecting $200 million in state revenue even though the tax rate has not even been set.
None of the anticipated revenue would go toward property tax reduction. It's a case of bait and switch - use the lure of property tax relief to open the casino doors and then steer new revenue to state government. The politicians always liked gambling because it enabled them to spread some cash around without directly raising taxes, even though the average property tax reduction thus far has been less than $200. Now, with the state government to be partially funded by craps and poker, they love it. Next up: video poker in every bar.
Thank you for calling the kettle black. Published in the Republican Herald.
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Last Updated on Tuesday, 29 December 2009 08:17 |
