Property Tax Elimination, Right to Work & Public Pensions

Member Group : Guest Articles

The world and even our nation are in a state of turmoil and uncertainty the magnitude of which has not been felt since WW II.

Nationally we are facing illegal immigration, welfare fraud and Obamacare.
Beyond our borders China is cyberhacking sensitive data, we’re financing Muslim Brotherhood in Egypt, North Korea and Iran’s threat of the bomb, the entire mid east eager to annihilate Israel , we’re ten years into an Afghanistan quagmire and will we ever know the truth about Benghazi?

Our leaders have become impotent when it comes to dealing with crises on the world stage. Do we fine China for cyberhacking? And if they did pay, would it be with our own money? Do we offer Iran and North Korea billions hoping to appease their intentions? Do we do likewise to the conglomerate of mid east Muslim nations and bribe them to co-exist peacefully with Israel?

I would caution that if our leaders do not grasp the seriousness of these international issues and resolve the financial problem they’ve created, I fear the transformation of government as we know it will not occur at the ballot box.

However, this article is not about things Tea Parties can do little to resolve, but is to remind us of what we can affect. This article is about three state issues we can do something about. They all have a major impact on our wallets.

1. Property Tax Elimination. A little history:

• 1987, Casey Referendum – Property tax shift to wage tax. (Where’s the shift?)
• 1998, Act 50
• 2005, Act 72
• 2006, Act 1 Property Tax relief from gambling revenue (Did you get enough to pay a grocery bill?)
• 2007, HB 1600
• 2007 and 2009, HB 1275 – The School Property Tax Elimination Act introduced by Representative Sam Rohrer. Both died in committees never to see a floor vote.
• 2012, HB 2230 Rep. Seth Grove’s local tax shift bill that was torn to shreds in a Berks County town hall public hearing called by Rep. Dave Maloney.
• 2012, HB 1776 and SB 1400. The latest property tax bills to die in committee.
• 2013, HB 76 sponsored by Rep. Jim Cox and SB 76 sponsored by Sen. Dave Argall. David Baldinger, spokesperson for Pennsylvania Coalition of Taxpayer Associations, says this could be the year. History is not on our side, but then again, eternal vigilance is the price of liberty.

Now let’s look at the Constitution.

The Pennsylvania Constitution Article 1, Section 1, states:
All men are born equally free and independent, and have certain inherent and indefeasible rights, among which are those of enjoying and defending life and liberty, of acquiring, possessing and protecting property and reputation, and of pursuing their own happiness. The state has been confiscating property owned by a citizen that is not able to pay their PA State Property Tax. We do NOT own our property, the state does.

The US Constitution Amendment IV states:
The right of the people to be secure in their persons, houses, papers and effects against unreasonable searches and seizures shall not be violated. What is more unreasonable then evicting a person from a full owned home for nonpayment of a lifetime of rent to the government?

Quote from our Founding Fathers:
John Adams, A Defense of the American Constitutions, 1787
"The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. If Thou shalt not covet’ and `Thou shalt not steal’ were not commandments of Heaven, they must be made inviolable precepts in every society before it can be civilized or made free".
We’ve been placated for over 25 years. Politicians take an oath to defend our rights and the constitution. It’s been a long and expensive ride. It’s time to get off.

2. Right to Work (RTW). It was 45 years ago in 1968 when I joined the PA RTW board. 37 years later I resigned in disappointment and disgust. In 2005 the same RTW cosponsors, thought of to be the good guys, voted themselves a mid night pay raise. Even worse, a RTW bill has never been brought to the PA floor for debate and a vote! Michigan (of all places), Wisconsin, Indiana all got it done this year. In 2012 Rep. Daryl Metcalfe introduced HB 50, a RTW bill that, again, died in committee. Earlier this year, thanks to Rep. Mark Gillen, I testified at the House L&I hearings representing a Tea Party and was the only one of 17 to testify quoting the constitution as the basis for a RTW law. If we argued accurate economics, the top ten states showing economic growth are RTW states. The bottom ten are not RTW states and PA IS ONE OF THEM. It is economics but, more importantly, it is a constitutional issue.

Art 1, section 1 of Pennsylvania’s constitution states, in part, "All men are born equally free and independent and have certain inherent and indefeasible rights among which are … pursuing their own happiness". Section 26 of that article states, in part "Neither the Commonwealth nor any political subdivision shall deny to any person the enjoyment of any civil right". I.e. The right to a job.

The 1903 Pennsylvania Supreme Court decision of Erdman vs. Mitchell held that "Under the declaration of rights of the constitution of Pennsylvania, the rights of a workman to the free use of his hands is a right which neither the legislature or a trade union can take from him, and one which it is the bounded duty of the courts to protect." Please read that decision again and ask yourself when was that over ruled? The truth is, it wasn’t. It has just been ignored with the Wagner Act in 1935 which allowed for agreements between employers and officers of a union requiring union membership as a condition of employment. This was clearly a violation of states’ sovereignty as outlined in the Tenth Amendment of the US Constitution which states "Powers not to the United States by the constitution are reserved to the states".

Instead of objecting or even nullifying the Wagner Act, Pennsylvania’s Legislature acceded to this federal legislation under the guise of the commerce clause.

The Wagner Act was followed in 1947 by the Taft-Hartley Act, which granted employees the right to refrain from any and all such activities EXCEPT to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment. Catch 22 (In other words, forced to belong).

That’s how we find ourselves today. We are seeking a law that returns an individual and states right which should never have been denied in the first place!

3. Public Employee pensions. The politicians guaranteed or defined benefits pensions re the underlying issue here. Public employees did not vote for their pensions. Public employees didn’t vote for a 50% politician’s pension increase or their own 25% increase in 2001. Legislators voted themselves a raise, but did not provide funding. The pundits keep reminding us that the governor needs to come up with $41B in public pension shortfall, which is projected to be over $1000 in additional annual tax per household. So start saving!
According to Gene Barr, president & CEO PA Chamber of Business & Industry, the $41B totals more than $8K per household. Taxpayers are on the hook for $4B of a budget of $28B just to cover pensions. In real terms, a teacher can work 40 years and combining the employee and taxpayer contributions provides a guaranteed benefit pension the equivalent to 100% of their pay. And should the fund fall short, the total risk falls on the taxpayers to make up the difference.

The bottom line is this. PA Constitution Art. II, section 8, states salary and mileage and no other compensation whatever for state legislators. Though the courts upheld it, it doesn’t even allow for their annual COLA raise. The constitution also states no salary increase during their term in office. So a plethora of lawyer paid by the legislature determined that pensions and colas are constitutional. I do not share that opinion.
The courts that found the argument constitutional are the same judges that fall under the same pension law. Notwithstanding the lawyer’s bias to their paychecks, since the judges have a self interest, compromising their judgment to act in the public interest, the entire PA court should have recuesed themselves.

The politicians should have the same defined contribution plan that is similar to the private sector 401(k) plan and end taxpayer supported defined benefits.
Upon researching the operational cost of government as far back as 2008, it revealed that the PA legislature was the most expensive of 50 states. At that time, PA operating cost was $23 for every PA resident. By comparison NY was $10.82, Calif. $8.20, Ill. $5.83. We not only have a property tax and pension problem, we have a cost of government problem that needs to be addressed and $41B of that cost is unsustainable pensions.

For example, former Senators Jubelirer and Brightbill, who were fired by the voters for engineering the midnight pay raise and then replaced with two constitutional conservatives (Senators Eichelberger and Folmer), who by the way are not participating in the unconstitutional pension program, but we’ll be paying the pensions for the two fired senators for the rest of their lives. Per Post-Gazette, Harrisburg Bureau, Brightbill receives $71,700 and Jubelirer $105,100. Other pensions per State Employees Retirement System are reported as Cong. Pitts – $90,867, Sen. Armstrong – $79,717, Sen. Brant – $60,912. And the list goes on. Salary and Mileage and no other! Politician’s pensions are no longer negotiable. They ignore their oath and the constitution — we spend our time defending rights they ignore.

It’s still the peoples government, albeit a little shaky. If we don’t agree with a law as written or a judge’s opinion, we still have the ballot box. A network of likeminded organizations should be the 2013 focus of Tea Party and Taxpayer Associations across the commonwealth. Constituents in districts having representatives or senators that do not support any or all of these bills, or more importantly co-sponsor them, need to step up to the plate. Republican RINOs or Democrats not willing to honor their oath need to be replaced in 2014 primaries or general elections.

Speaking as a vice chairman of the Berks County Patriots, I want to dispel any rumor that Tea Parties, at least the Patriots, are not just a shill of the Republican Party. Rep. Turzai and Sen. Pileggi, both republicans that are using their Republican leadership power to hold up these bills, need to get on board or find another job. It’s our responsibility to assist in their career change.

Should you wish to be part of the political revolution, email the writer at: [email protected]
Rod Miller
Berks County Patriots
Vice Chairman, Legislative Chairman