Lehigh County Commissioners invited the public to a hearing Wednesday night as they workshopped a so-called "wealth tax" – a proposal to tax stocks, mutual bonds, S corporations and secondary residences.
While the idea is to at least partially offset property taxes, the concept was... uh, less than well received.
The four-hour hearing ended with most in attendance voicing opposition, including four of the nine commissioners. Commissioner Sarah Fevig, whose comments were more neutral, said she had no short-term plans to explore the concept further.
The intangible personal property tax may not be going anywhere for the time being – Executive Josh Siegel said he will not propose one in his 2027 budget – but I suspect we'll keep hearing about later this year.
Controller Mark Pinsley proposed the concept last month, a few weeks before he won the Democratic nomination for Pennsylvania's 16th Senate District. While he said he just wanted to start a conversation about how the county will plug a $3.7 million structural deficit, it may prove to be a juicy target for incumbent Sen. Jarrett Coleman and fellow Republicans to hammer away at on the campaign trail.
On paper, the district leans strongly Republican, but Democrats are optimistic they can flip the seat given dominant Democratic performances in 2025.
We'd like to hear your thoughts on the 'wealth tax' discussion. Should lawmakers spend time and effort exploring this further? You can reach us at contact@lehighvalleypublicmedia.org. (If you’re reading this in your inbox, you can just hit reply).
THE FOCUS
It's fully warranted for county residents to let elected leaders know loud and clear where they stand on reviving the intangible personal property tax. Even people who may be inclined to support the concept may be turned off by the logistical and legal hurdles to bring back the tax. Lehigh County last collected it in 1992, when elected officials called it an unfair "honesty tax."
But the fact remains the structural deficit is expected to grow to $5 million next year. And while many, MANY speakers said elected officials need to consider cutting spending before raising taxes, Lehigh County has mostly done that.
Property taxes are lower in Lehigh County today than they were 13 years ago. That's thanks primarily to the old Republican-lead board that passed a series of what then-Executive Tom Muller criticized as "happy meal tax cuts" – the average savings were in the range of $10 to $15 for the average homeowner.
Democrats have since won control of the board, and the board did pass a tax hike in 2019. But the tax rate is still modestly lower than 2013 despite the population growing by about 25,000 people and inflation increasing approximately 44 percent.
County governments tend to act as a social safety net. They pay for prison guards, prosecutors, emergency dispatchers and social workers checking on allegations of child and elder abuse. Executive Josh Siegel won office last year in dominate fashion by promising not to cut those services. Given those circumstances, spending cuts seem unlikely barring a larger-than-expected loss of state and federal funding.
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MORE POLITICAL NEWS
Here's what the Lehigh Valley Public Media news team has been working on:
- The lawsuit between Democratic congressional candidate Bob Brooks and his former mother-in-law had a procedural hearing Tuesday before Northampton County Judge Jennifer Sletvold. Not much news advanced out of the hearing itself, so I didn't write anything up. However, U.S. Rep. Ryan Mackenzie's campaign sent an email to media highlighting the court hearing and at least one of his staffers was present in the courtroom. Expect his campaign to keep banging away on this matter in attack ads for the next four months or so.
- Kitchen table matters are political matters, and that rule extends to the house where people sit at that table. The Lehigh Valley's housing market is so tight that home prices in rural Carbon County are now skyrocketing as more and more people looking for affordable housing search further away. President Donald Trump used the economy like a cudgel against Democrats in the 2024 election, and Democrats are now poised to do the same in the upcoming midterms.
- Lehigh County Executive Josh Siegel announced his administration is rolling out policies to limit cooperation between county employees and ICE officials. Allentown and Bethlehem have similar policies in place. Siegel's announcement comes as the Department of Homeland Security attempts to convert warehouses in Berks and Schuylkill counties into detention centers.
WATCH
Lehigh Valley Political Pulse
Pennsylvania Democratic Party Chair Eugene DePasquale appeared on the program to talk about the party's efforts to connect with voters here in the Lehigh Valley. Pennsylvania's 7th Congressional District is the most important race in the region – and a key one nationally, for that matter – but he pointed to the 137th House District and the 16th Senate District as other critical races that Democrats are trying to secure. (We filmed this episode before President Trump and Iranian leaders negotiated a tentative peace agreement over the weekend.)
If you hadn't noticed, Pulse episodes are being released every two weeks now as we shift to our summer schedule. We'll return to weekly releases once September rolls around, just as election season kicks into higher gear.
POLITICAL NEWS FROM ELSEWHERE
- The state Supreme Court ruled this week that skill games – the slot machine-like games commonly found in bars, social halls and gas stations – should be taxed like slot machines. The court set a 120-day window for lawmakers to change the law before the new taxes set in. Gov. Josh Shapiro previously proposed taxing the machines at the 52% rate slot machines face to cut the state's deficit spending. Republican leadership in the House and Senate have acknowledged gaming reform will be necessary, the Philadelphia Inquirer reports.
- PA Attorney General Dave Sunday signed off on paying the contractors who performed security upgrades to Gov. Josh Shapiro's private residence in Montgomery County, the Pennsylvania Capital-Star reports. State police recommended the upgrades after an arsonist set the Governor's Residence ablaze last year. However, the improvements to Shapiro's home weren't approved by the General Assembly, sparking controversy. Sunday's decision means that workers will get compensated for the $1.1 million of work they performed, but I don't expect critics will ease up on Shapiro for not going through the proper channels.
- PoliticsPA reports that Senate Minority Leader Jay Costa is attempting a new strategy to raise Pennsylvania's minimum wage from $7.25 to $15 by 2029 – a discharge petition. The legislative maneuvers force votes on bills that have otherwise been trapped in committee if a majority of senators sign on. The petitions are typically considered a desperate measure but a record amount have passed in gridlocked Washington this session. With just three seats deciding the majority in the state Senate, Costa may be hoping for some similar luck.
Send news tips, story ideas and feedback to contact@lehighvalleypublicmedia.org.
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