Proposed new tax for PA

[Suburban Rhythm]

Already taxing "poured drinks" as of Jan 1st, now this-

http://www.postgazette.com/pg/08005/846946-178.stm

HARRISBURG -- A tax on sex?

State Sen. Jane Orie will soon ask senators to call for a study by a legislative research group on whether a tax should be imposed on sexually explicit, adult-oriented businesses. The sex tax, or porn tax as others are calling it, could be a 10 percent levy on the admission price to an adult-oriented business, or a tax on the sale of food and drink at such businesses.

[oliegirl]

Just out of curiosity, why were the drinks at adult bars/clubs not taxed under the "poured drinks" tax you mention? And isn't food and drink at a "regular" bar/club/restaurant taxed?

[QuikSand]

Originally Posted by oliegirl

Just out of curiosity, why were the drinks at adult bars/clubs not taxed under the "poured drinks" tax you mention? And isn't food and drink at a "regular" bar/club/restaurant taxed?

Usually, the regular sales tax rate (6% in PA, I think) applies to a wide variety of things, including restaurant meals. But a special excise tax on top of that rate may also apply to something singled out, like "poured drinks," or in the proposed case certain adult entertainment.

In this sort of business, it's fairly common to allow "free admission" but then require a two-drink minimum, or something of that sort. If that's the case, it's silly to only apply the tax to the admission price, so it is often applied to the refreshments as well, as a proxy for the actual cost of admission/entertainment.

[oliegirl]

Originally Posted by QuikSand

Usually, the regular sales tax rate (6% in PA, I think) applies to a wide variety of things, including restaurant meals. But a special excise tax on top of that rate may also apply to something singled out, like "poured drinks," or in the proposed case certain adult entertainment.

Ok. The article made it sound like the items they are talking about taxing are not currently taxed...that is why I asked. I think in GA drinks are taxed at a higher rate than food, but I don't know for sure, and I certainly don't know about PA taxes

[JeeberD]

Texas just started a $5 "poll tax" to be added to the cover price for everyone who goes to a strip club. The money goes to some rape victims fund...

[QuikSand]

This just in: taxes are not popular.

Invariably, we end up seeing any debate about tax policy devolve into a debate about whether our elected politicians (the ones we continue to re-elect) are worth a damn, and whether they should be spending as much money as they do. But the reality is, if we want any degree of public services then we need public revenues of some sort -- so debating tax policy is a practical necessity.

One of the most common debates about tax policy is how much taxes "distort" the markets or individual decision-making. Arguments go something like this: "If we tax ______, then there will be a disincentive for people to do that thing." When the ______ is something like wages, investing, or business profits... we have a lucid argument about the downside to taxation. As much as we want to throw out all "politicians," they really do by and large want to do what they think is right -- and nobody wants to diminish job growth, economic prosperity, or other such generally beneficial activities.

So, we generally start looking for a way out of this conundrum. And one argument is that we can use the tax system not only as a means to raise revenues, but to potentially curb activity that we determine isn't quite as beneficial as other activity. Smoking, drinking, adult entertainment, and the like all fall under the general category of undesirable activities (to some, at least) and seem like suitable targets for this sort of excise taxation. The theory being that if taxing implicitly reduces an activity, why not tax activities that we wouldn't mind being reduced anyhow? It doesn't seem like a wholly misplaced public policy notion to me, though the specifics sometimes get past the principle.

So that's basically what this is about -- really not that complicated. It is a struggle for every level of government to apply taxes and fees suitable to raise the revenues they deem necessary. Some people are convinced that targeted taxes on less desirable activities are a fair way to raise revenues with an eye toward actually making societally beneficial changes in people's behavior as an indirect but intended result.

[RendeR]

It saddens me to watch Pennsylvania continue down the path to hell in a handbasket. I love my home state but I'll take New york's screwed up shit over PA's right now because at least NY is trying to move in the other direction. (Which sort of implies its already far beyond PA on the road to hell, but anyway....)

[Raiders Army]

Originally Posted by RendeR

It saddens me to watch Pennsylvania continue down the path to hell in a handbasket. I love my home state but I'll take New york's screwed up shit over PA's right now because at least NY is trying to move in the other direction. (Which sort of implies its already far beyond PA on the road to hell, but anyway....)

I'm with you there.

I also blame the Amish.

[Suburban Rhythm]

State tax is 6% (additional 1% in Allegheny County, not sure if there is a similar additional tax in Philly). The poured drink tax is a new, 10% on exactly that, poured drinks, in addition to state sales tax. They also passed a $2 per day surcharge to car rentals.

All $ collected from those two taxes are to go to Port Authority Transit of Allegheny County (PAT) and the SouthEast PA Transportation Admin (SEPTA) for public transportation around Pittsburgh and Philly (and I guess, to a lesser extent, the smaller rural transit admins). Not surprisingly, both those gov't bodies BLEED money. There are numerous articles I could pull out of the Post Gazette, from allowing new employees to "purchase" seniority based on their pervious jobs at other transportation jobs, to the golden parachutes given to top mgmt.

So, as of Jan 1st, fares for PAT were raised, and the two new taxes enacted.

Did I just threadjack my own thread?

Texas just started a $5 "poll tax" to be added to the cover price for everyone who goes to a strip club. The money goes to some rape victims fund...

Further into the article linked describes how this new tax would be used the same way. Wondering if they apply a new tax to casino winnings to treat gambling addiction? Or how about maybe a parking surcharge at the malls to help out with credit counseling?

[sterlingice]

Originally Posted by RendeR

It saddens me to watch Pennsylvania continue down the path to hell in a handbasket.

Yes, a 10c tax on strip clubs. Hell in a handbasket, I tells ya

SI

[Cringer]

Originally Posted by JeeberD

Texas just started a $5 "poll tax" to be added to the cover price for everyone who goes to a strip club. The money goes to some rape victims fund...

This is what I was going to post the second I read the first post in the thread. I just heard about it.

It's dumb. I don't go to clubs often, so it's not a huge impact in my life, it just seems pointless. The money to rape victims seems like a nice thing I guess, I just wonder who is behind the stupid tax. Who wanted it? A group who is religious and looks to hurt any sex/nude-related business or a man hating group, those are my guesses. I am going to see if I can find anything out now....

[Jas_lov]

This is an abomination! The lower the taxes the better. No strip club tax, no sex tax, no drink tax! There are way too many taxes! Stand up and fight Pennsylvania!

[Galaxy]

Originally Posted by Raiders Army

I'm with you there.

I also blame the Amish.

Lancaster County is interesting. They only have a limited amount of liquor licenses issued. Whenever one of the licenses is for sale, the Amish usually buy it (and either shut down the business, or sell it, but take the liquor license out of circulation). The county doesn't issue any new licenses. I've heard rumors now that a liquor license can run in the mid five-figures.

[Suburban Rhythm]

Originally Posted by Cringer

This is what I was going to post the second I read the first post in the thread. I just heard about it.

It's dumb. I don't go to clubs often, so it's not a huge impact in my life, it just seems pointless. The money to rape victims seems like a nice thing I guess, I just wonder who is behind the stupid tax. Who wanted it? A group who is religious and looks to hurt any sex/nude-related business or a man hating group, those are my guesses. I am going to see if I can find anything out now....

Well, the Senator proposing this is female and Republican.

As I posted above, where is the woman hating group calling for a mall parking surcharge to fund credit counseling on the backs of credit card wielding suburban soccer moms. That's what we need!

[RendeR]

Originally Posted by Raiders Army

I also blame the Amish.

I wouldn't, they're the only honest ones left in the state.

[Cringer]

Originally Posted by Suburban Rhythm

Well, the Senator proposing this is female and Republican.

As I posted above, where is the woman hating group calling for a mall parking surcharge to fund credit counseling on the backs of credit card wielding suburban soccer moms. That's what we need!

I saw this when I went to look at it. She also happens to be a member of a group that will probably get a tone of money from this tax.

I also saw they tried to do this in Texas back in 2004. The reason it didn't pass then was because someone thought it would be a good idea for the money to go to schools. The problem was other people didn't like the strip club industry being linked directly to kids. lol.

[CraigSca]

I don't get it - what's the problem here? Would you rather they tax food?

[Cringer]

Originally Posted by CraigSca

I don't get it - what's the problem here? Would you rather they tax food?

Call me crazy, but maybe they shouldn't add any more new taxes at all.

[Jas_lov]

Originally Posted by Cringer

Call me crazy, but maybe they shouldn't add any more new taxes at all.

I agree! They should NOT tax food. They should NOT tax porn. NO NEW TAXES!

[Radii]

Originally Posted by JeeberD

Texas just started a $5 "poll tax" to be added to the cover price for everyone who goes to a strip club.

We haven't had a "pole tax" joke yet? Come on, people.

[Raiders Army]

Originally Posted by RendeR

I wouldn't, they're the only honest ones left in the state.

Okay. Just joking. Maybe the Mennonites?

[Cringer]

Originally Posted by Radii

We haven't had a "pole tax" joke yet? Come on, people.

Actually, Jeebs "poll" is misspelled from what I am seeing. I keep seeing it as a "Pole Tax."

So the great people of the state of Texass are already on top of it.

[Suburban Rhythm]

Originally Posted by Cringer

Actually, Jeebs "poll" is misspelled from what I am seeing. I keep seeing it as a "Pole Tax."

So the great people of the state of Texass are already on top of it.

On top of the pole?

[Cringer]

Originally Posted by Suburban Rhythm

On top of the pole?

If you had ever had a lap dance in Texas you wouldn't need to be asking that question.

[JeeberD]

Originally Posted by Cringer

Actually, Jeebs "poll" is misspelled from what I am seeing. I keep seeing it as a "Pole Tax."

Yeah, I'm an idiot... :o

[saldana]

there is no poured drink tax at most strip clubs because they are byo, so there is nothing for them to put the tax on except for the cover

[JeeberD]

Originally Posted by saldana

there is no poured drink tax at most strip clubs because they are byo, so there is nothing for them to put the tax on except for the cover

In Texas, at least, full nude clubs are BYOB while topless clubs serve alcohol. And it sounds like the cover tax is in effect for both of them...

[Cringer]

WHat is annoying about the Texas tax is that around my area I am pretty sure most clubs do not have a cover during the day hours at all. You now will have to pay a cover at any time. I can see that hurting some clubs.