State Sen. David Argall, R-Schuylkill, wants to drive a stake through the heart of the school district property tax.

Argall believes his plan to eliminate all school property taxes across the commonwealth and replace them with a combination of higher personal income and state sales taxes might be successful during the current legislative session that began last week.He came mighty close last session as an almost-identical bill failed to pass the Senate when the vote came up 24-24. Although Lt. Gov. Mike Stack cast a tiebreaking vote, the proposal still fell a vote short. The measure needs 26 votes, or one more than half, to pass the upper house. Although Argall is confident that he has solid support in the House of Representatives, there is no guarantee of its fate if it gets that far. Argall also is wooing Democratic Gov. Tom Wolf, who, Argall believes, "has come around and now believes that eliminating the tax is the way to go."Argall said the school property tax has been a primary source for school funding for nearly two centuries, but he believes that the General Assembly cannot continue to try to fix or reform this archaic tax. "That is why we are proposing a new education funding model that would promote economic growth and completely eliminate the school district property tax once and for all," Argall said.This controversial bill is sure to be challenged by opponents who don't want any tax increases, and some legislators are already scoffing at the notion that this would be a dollar-for-dollar swap as Argall and other supporters claim.Argall stressed that this is not his bill but one brought forth by about 80 different taxpayers groups. "There is always going to be a fear of change," Argall said, but he said a study by the Independent Fiscal Office looking at the tax implications into the future shows that "this plan will work."There is no question that rising real estate taxes impact senior citizens most heavily, and they are likely to make out reasonably well on average if Argall's proposal passes. Many seniors object to supporting the educational system through real estate taxes, arguing that they have not had children in school for decades.Supporters of educational funding, however, say that it is the responsibility of all able adults in a district to support an excellent educational system, especially in a growing technological world where more specialized training will be needed to cope with business and industry demands.Here is how Argall believes he can walk this shaky tightrope:• Increase the sales and use tax by one percentage point to 7 percent and broaden the base to include more services and products, such as some food and clothing, funeral services, etc. Necessities and business-to-business transactions will continue to be exempt from the sales tax.• Increase in the state's personal income tax from 3.07 percent to 4.95 percent, or 61 percent. For a person making $50,000 a year, this would amount to an annual difference of $940. (The goal would be to have this amount offset by the person's not having to pay about the same in school real estate taxes.)Known as the Property Tax Independence Act (Senate Bill 76), Argall believes that two senators elected in 2016 will look more favorably on the proposal than two departing senators who voted against the bill. One was defeated for re-election by a proponent of the bill, while the other retired and was replaced by someone who pledged support for Argall's efforts.One of our fears is that the number of working-age Pennsylvanians is projected to decline in the future. There will be more retirees, and retirement income is not subject to the state income tax, so we're concerned that a disproportionate burden will fall upon the working class.We also are concerned about what happens during a time of deep recession, such as we experienced in 2008 and 2009. If there is not a dependable source of income to operate the schools, then what?We also are more than a little concerned about the burden that employee pensions puts on the entire educational apparatus. We believe that the General Assembly should address this issue first and firmly to make sure that this runaway train stays on the track.It also must be made perfectly clear that this proposal affects the school real estate tax only. Property owners will still pay property taxes to their county and local municipality.There is no question that the property tax has long outlived its usefulness, but it has been a rock-solid source of school funding. Coming up with a just and equitable alternative, one that also provides a solid, predictable footing on which budget administrators can depend, is not going to be easy, and there will be considerable opposition from many quarters, including scores in the educational community itself.By Bruce Frassinelli |

tneditor@tnonline.com