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FOR IMMEDIATE RELEASE |
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CONTACT: Mike Storm |
State Rep. Chelsa Wagner |
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To: Editorial page editors
From: State Representative Chelsa Wagner, D-Allegheny
Subject: 2007-08 State Transportation Budget Agreement
Please consider the following commentary for your Editorial/Op-Ed section. If you have any questions, please contact Mike Storm at 717-787-7895 or at mstorm@pahouse.net.
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New drink tax exactly what Allegheny County doesn’t need
By state Rep. Chelsa Wagner, D-Allegheny
On Tuesday, the state House passed legislation addressing our region's mass transit crisis. That same statewide transit funding plan included fine print allowing Allegheny County to institute a 10 percent drinking tax and a car rental tax. I have and will continue to fight for transportation funding, but not at an unfair cost to the people of Allegheny County. I must highlight that the transportation bill meant no new taxes for any of the state's 67 counties… that is, until the Senate amended it to include new taxes only for Allegheny County.
My opposition was reinforced when I found it was snuck into an otherwise good piece of legislation in the same vein of the infamous legislative pay raise of 2005. Unrelenting opposition to the pay raise illustrated the public demand that we end business as usual in Harrisburg. I believe I was elected by the people of Allegheny County to fight for true reform that could eventually restore the public trust. The new tax that passed without any public input puts our businesses at a competitive disadvantage. That is not my notion of reform.
Some of my colleagues have likened this new tax to one that exists in Philadelphia, proposing that "if Philadelphia has a 10 percent drink tax, why not Pittsburgh?"
My response is simple: What's right for Philadelphia is not necessarily right for Pittsburgh. The fact that Philadelphia has a drink tax is no excuse to lay the same burden on our businesses.
When the House voted to approve this new tax, I delivered a scathing speech on what I felt was a piece of legislation that would unfairly burden only Allegheny County. I was disappointed to have to vote against a plan that I otherwise supported, one that provides so many other good solutions to the statewide public transportation crisis. I stand by my decision to defend our residents from yet another tax. I maintain that a 10 percent drink tax is considerable for many of the hardworking men and women I represent.
Allegheny County faces unique economic challenges; our workers have lower earning potential than Philadelphians. Ten cents on the dollar is not as easy to come by in Pittsburgh as it is in Philadelphia. Someone who enjoys one or two beers each evening and maybe a weekly night out with his or her family could spend another $250 per year for this drink tax. Given the choice, I believe many would choose to patronize restaurants and bars in surrounding counties to save money.
Let me also address the erroneous threat: "If not a drink tax, then it would’ve been higher property taxes." This sounds like the doom politics of the past, the politics we’re supposed to change. Besides, both taxes burden our working people. If the Senate had not attached the drink tax at the last minute to the transportation bill, we could’ve ensured an open and transparent process that examined how best to increase local funding for the Port Authority.
It also concerns me that this law gives Allegheny County the power to implement this new tax without addressing accountability and governance of the Port Authority. I will continue to fight for an overhaul of the Port Authority's board, which currently is entirely appointed by the county despite the fact that the county funds only a fraction of that agency. Now we've given the county more authority without giving any protection to taxpayers. Throwing money at a problem without additional safeguards is irresponsible governance.
I adamantly support public transit and funding for roadways and bridges, which are crucial to our region's economic future. In fact, I spent a great deal of time since taking office advocating for a responsible solution to the transportation crisis. However, I cannot support an unfair and arbitrary tax for Allegheny County, which had no rightful place in this legislation.
We need more incentives for people to live, work and own businesses in Allegheny County, not penalties created by drink and rental car taxes. This issue ought to raise bad memories of that midnight pay raise of 2005, and I will not support anything that shows such disrespect for the people of Allegheny County.
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