BCT Editorial – 2/6/06

This page was last updated on February 6, 2006.

Bad idea; Editorial; Beaver County Times; February 6, 2006.

Below is a detailed critique of the subject editorial.

“The last thing the state needs to do is to raise income tax on the wealthy.

“Raising the state’s income tax on the wealthy is a really, really bad idea.”

[RWC] Hmm. Given Times editorials going back to at least 2004, I don’t understand the apparent change of heart regarding taxes.

“Sen. Vincent Fumo, D-Philadelphia, has floated a proposal that would raise the wage tax on the wealthy so that the resulting revenue can be used to reduce property taxes. Fumo says his plan would raise $750 million.

“Fumo would tax income above $250,000 but not more than $400,000 at a rate of 4.57 percent. The tax rate on income above $400,000 would rise to 6.07 percent.

“For a state that is trying to attract business and investment (as well as people), this is an absolutely terrible idea. States that are competing with Pennsylvania would be sure to trumpet these tax rates to the corporate executives they are wooing.”

[RWC] The Times recognizes raising taxes will discourage business and investment, yet somehow doesn’t seem to understand increasing PA’s minimum wage will also discourage business.

“That this proposal has little chance of going anywhere in the GOP-controlled General Assembly doesn’t matter. That it was proposed at all was bad enough because it exemplifies the old, anti-business Pennsylvania at its worst.”

[RWC] I don’t understand the Times position given its proven liberal stance. It’s a fundamental piece of liberal orthodoxy that the more you earn, the more you should be taxed. I wonder if this means the Times will now oppose the regressive (escalating tax rates) nature of the federal income tax.

“Old, anti-business Pennsylvania?” Tell me, what isn’t anti-business about the current PA?