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Uneven Tax Cut

Many people stand to gain from the slot machines in Pennsylvania in the way of tax relief.  Although slot machines are churning out less tax revenues than expected several residents of the state stand to benefit from tax cuts in the 2009/2010 budget year; although not everyone will benefit equally.

According to Pennsylvania state law, the same amount of tax cuts must be distributed this year as in years prior.  $50 million in fees from the distribution of 11 slot machine operating licenses gave this years tax cut distribution a healthy boost.

Roughly $170 million has already been set aside for distribution next year.  Pennsylvania is expecting much more in the way of gambling revenue next year from their slot machines.

Again, the benefits will be lopsided.  A significant portion of property tax cuts will be distributed to homeowners in school districts where property taxes are high and incomes and property values are relatively low.

Suburban residents working in Philadelphia and elderly homeowners stand to benefit from tax cuts in two ways.  Suburban workers may be able to thank slot machines for a reduction in property tax as well as a reduction in Philadelphia wage tax.

Some elderly home owners may not only qualify for a low income rebate but a standard property tax cut as well.

Tax revenues from slot machines will benefit more than just Pennsylvania residents.  There are several commuters that come from different states to work in Philadelphia that will benefit from the reduction in city wage tax.

 

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