Many local governments and elections call for temporary tax increases—a few cents here, a few percentage points there—just to get budgets out of a small rut.
The problem with those “temporary” increases is that they’re not all that temporary. After they’re passed, they’re usually forgotten about, taxes are never cut, and they become permanent.
Take Philadelphia for example:
the two-year property tax increase City Council passed in 2010 that, lo and behold, is still with us. Or another dreaded levy: the wage tax. It was passed in 1939 as a short-term fix for the city’s finances, but succeeding generations have nonetheless been forced to accept its bite in their paychecks.
Now, Philly is facing another “temporary” tax crisis—and politicians who want to redirect the funds, making this tax increase permanent:
The increase – which raised the tax on most goods and services in Philadelphia from 7 percent to 8 percent – is slated to expire next June. City and state leaders are now talking about making the increase permanent, with the extra money being put toward one or both of the city’s greatest needs: the struggling School District and the vastly underfunded public employee pension fund.
Essentially, ignore when a politician ever says that a tax increase is “temporary” or has an “expiration date”. It’s always just a test. Once a government realizes you’re capable of paying those extra few percentage points or a few cents here and there, kiss that money goodbye for perpetuity. The government will always find a way to spend tax dollars.
