Where's The Sanity?

By Justin J. Simmons

It's Illogical To Increase Spending When Revenue Is Down

Like his last budget, Governor Rendell insists on raising taxes. He plans on creating $531 million in revenue by lifting 74 sales tax exemptions. What he doesn't seem to get is that raising taxes has destroyed Pennsylvania's economy and will continue to do so until we start enacting reforms.

According to the Commonwealth Foundation, "Since Gov. Rendell took office in 2003, Pennsylvania's burden of state and local taxes has increased from the 17th heaviest in the nation to the 11th. State spending has increased by $3,600 per family of four (in inflation-adjusted dollars). State debt has increased by $18 billion to a whopping $41 billion-a 78 percent increase-or $5,600 per family of four."

The real solution to Pennsylvania's problems lies in cutting spending. Since Ed Rendell became Governor, spending has increased by 40%, or about $9 billion. According to NFIB, had the state kept spending growth to inflation and population growth, Pennsylvania would have a $3.8 billion surplus.

I would hope my opponent, Karen Beyer, votes no on this budget. I was severely disappointed when she was one of only five house republicans out of 99 that voted for the last budget. That budget increased the onerous capital stock and franchise tax on businesses by 53%. This tax is basically a property tax paid by businesses regardless of whether they make a profit. In addition to this, businesses must also pay the corporate net income tax or personal income tax if they're a smaller business.

When Karen voted yes on the last budget, she took to the house floor and talked about how good it was because it included a provision that put $30 million of your tax dollars toward a hockey arena in Allentown. What I don't think she realizes is that her vote will end up costing Pennsylvania jobs and revenue. When you raise taxes on business, they either pass it on to the customer or lay off workers. In the end, her vote will end up costing Pennsylvania more in the long run.

But I suppose she will feel wonderful when she has a photo op in front of a new taxpayer-funded hockey arena.