MARCH 24, 2010

Evans Threatens to De-Fund PA Attorney General in Tiff

In a Democratic response to Attorney General Tom Corbett's decision to join 13 other states in filing a lawsuit against the Obama health care legislation, House Appropriations Chairman Dwight Evans threatened to "do whatever it takes" to thwart the AG's efforts. Incensed, Evans even went so far as to say he would be willing to cut off all state appropriations to the Office of the Attorney General to prevent Corbett from fighting this legislation. Here is probably the most priceless quote of his response:

"We are accountable to the voters of this state. He cannot think that he can do whatever he wants with taxpayer money. No one can protect him from being accountable."

This statement, coming from Evans, just screams hypocrisy. First of all, Evans should think about following his own advice, as he is one of the most notorious proponents of "WAMs" in the Legislature, with taxpayer dollars going to fund his own community group and a failed nightclub venture.

Second, President Obama, Gov. Rendell, and others used plenty of taxpayer funding to build a PR campaign around the very legislation Corbett is challenging. Tax dollars were used for everything from rallies to newsletters to press conferences, trying to gain support for these unpopular "reforms".

Furthermore, Evans threat seems a clear violation of the separation of powers, and threatens the independence of the Attorney General. Indeed, it seems particularly curious, coming a mere two days after Corbett secured a conviction against Evans' former House Democrat colleague Mike Veon, and is continuing his investigation and prosecution of House Democrats.

Lastly, the lawsuit being filed isn't over some flippant issue. There are legitimate Constitutional concerns over the legality of this legislation. Not only does the legislation violate the 10^th Amendment, but the fiscal impact of the health care bill will assuredly cost Pennsylvanians billions of dollars.

posted by MICHAEL NEROZZI, NATHAN BENEFIELD | 02:14 PM | 1 comment

MARCH 23, 2010

Kanjorski Gets Sweetheart Deal for Geisinger Health

Like previous deals given to Senator Ben Nelson (Nebraska) and Mary Landrieu (Louisiana), Speaker Pelosi and President Obama offered reluctant House Democrats more favors in exchange for their support on health care legislation. One Democrat from Northeast PA, Rep. Paul Kanjorski (PA-11), received special tax exemptions for Geisinger Health, one of the largest insurance companies in the region.

According to the bill, tax-exempt insurers, such as Geisinger Health, now only have to pay half of the tax levied on insurance premiums. Geisinger Health, based out of Kanjorski's district, has offices scattered throughout the Northeast corner of the state.

In addition, Kanjorski secured an extension on the deadline on new doctor-owned hospitals to apply for Medicare program eligibility. Insiders have said this will benefit only 13 facilities in the nation; not surprisingly, Scranton Orthopedic Specialists (again, based in PA-11) is one of them.

posted by MICHAEL NEROZZI | 08:20 AM | 0 comment

MARCH 19, 2010

Maryland Smokers Border-Hopping to Avoid Cigarette Tax

According to a recent op-ed by Marc Kilmer of the Maryland Public Policy Institute, a 2007 cigarette tax is having an adverse effect on the Free State's economy. While public health advocates have lauded the move as an effective way to deter smoking, Maryland smokers simply starting buying their cigarettes in neighboring states that have a lower tax rate, including Pennsylvania.

Looking at neighboring states' cigarette sales, it seems that at least part of the drop-off in Maryland cigarette sales is due to Marylanders buying cigarettes in those states. Pennsylvania, for instance, had been seeing a steady decline in cigarette sales since 2002. In 2008, though, as Maryland cigarette sales were falling, Pennsylvania sales increased by more than 7 million packs. Cigarette sales in the District of Columbia and West Virginia also increased from 2007 to 2008.

Check out Budget Facts 2009: Cigarette Taxes for more.

posted by MICHAEL NEROZZI | 00:16 PM | 0 comment

MARCH 17, 2010

Gas Bags Scare Off Gas Investor

In an interview with CNBC, Larry Nichols, CEO of the highly-successful Devon Energy, claimed his company will not be seeking a share of the Marcellus Shale gas reserves anytime in the near future. The reason he cites? The political war going on over whether and how much to tax and regulate the industry.

The Marcellus shale is certainly an attractive place to be, and we don’t want to diminish that in any way. But when we looked at all the shale plays and where we could grow production the fastest, and grow it with the least amount of political problems, it was not high on our list.

What's ironic about is that the very company environmentalists are discouraging with "political problems" has been recognized as one of the nation's top promoters of clean energy and sustainable corporate practices. Devon Energy was even given the DEP's STAR award for "Rookie of the Year" in 2004 and "Production Partner of the Year" in 2005. They are considered an industry front runner in waste water recycling, and were deemed as one of Fortune Magazine's 100 Most Admirable Companies.

So now, not only does Pennsylvania's poor economic climate cost a job creator, but one of the most environmentally-friendly companies.

posted by MICHAEL NEROZZI | 08:44 AM | 0 comment

MARCH 10, 2010

Obamacare and Deficits

In campaign-mode fashion, President Obama held a rally at Arcadia University on Monday to sell his plan for health care reform. Filled with the usual rhetoric and emotional, Obama made some many claims about the fiscal implications of the current legislation in Congress.

Probably the most outrageous claim was a bill that will cost over $100 billion dollars a year will be deficit-neutral. As David Brooks from the NY Times points out, this "neutrality" is simply a bait and switch tactic"

One of the reasons the bill appears deficit-neutral in the first decade is that it begins collecting revenue right away but doesn't have to pay for most benefits until 2014. That's 10 years of revenues to pay for 6 years of benefits, something unlikely to happen again unless the country agrees to go without health care for four years every decade.

Combine this new spending with the burdensome regulations like individual mandates to purchase insurance and fines on small-business who don't offer coverage and you have a recipe for a fiscal nightmare.

Instead , President Obama should go back to the drawing board and embrace common-sense alternatives such as allowing the purchase of insurance across state lines, medical malpractice reform and tax code reform.

posted by MICHAEL NEROZZI | 08:28 AM | 0 comment

MARCH 4, 2010

HSAs: Efficient Heath Care and Savings for State Taxpayers

A recent op-ed by Indiana Governor Mitch Daniels in the Wall Street Journal highlights the benefits his state has seen since implementing an optional Health Savings Account (HSA) for public employees. By providing a pre-paid $2,750 HSA, of which the employee had full ownership, the Hoosier state quickly began to realize its potential.

An essential ingredient contributing to the program's success was that employees keep whatever funds were left in an HSA at the end of the year. This incentivized employees to eat right and practice healthy habits, giving them more money in their pocket. The average amount left in the account at the end of the year was around $2,000 per person.

Overall, the state will save roughly $20 million due to their HSA enrollment, which is currently around 70% of all state workers. In 2009, employees with HSAs visited the emergency room roughly 67% fewer times than those employees on the traditional plans, and had a lower average prescription cost by opting for generic medications.

Instead of pushing for greater government control in health care, politicians in Washington should turn to the "laboratory" of the states for sound solutions.

posted by MICHAEL NEROZZI | 08:52 AM | 0 comment

MARCH 1, 2010

Marcellus Shale Powering Job Growth

TMK-IPSCO, an oil-and-gas pipe maker, recently announced its plan to build a new manufacturing facility roughly 60 miles northwest of Pittsburgh, just over the Ohio state line. The new facility will bring an estimated 120 jobs to the area, while also providing the piping used by natural gas drillers here in the Marcellus Formation.

Due to the rapid growth in natural gas extraction, companies like TMK are quickly moving to the area to meet demand, spurring job growth in regions once considered economically stagnant. By keeping Pennsylvania's tax structure business-friendly and by keeping regulations on the extraction of gas to a minimum, more companies like TMK are sure to follow.

posted by MICHAEL NEROZZI | 08:12 AM | 0 comment

FEBRUARY 24, 2010

Pennsylvania Bottom-of-the Pack in State Competitiveness

A recent report by the Beacon Hill Institute, a free-market think-tank out of Suffolk University in Massachusetts, provided even more dismal news on Pennsylvania's economic climate.

According to the study, Pennsylvania is ranked 39th out of the 50 states in economic competitiveness, citing high taxes, high crime rates and other factors for it's less-than-desirable ranking. Given the burden our state continues to place on our families and small business by way of both personal income tax and business taxes, our low ranking is not surprising.

Until we can provide a economic climate that can allow small business to flourish and reduce the onerous levels of taxation on our citizens, Pennsylvania will continue to miss out on opportunities for real growth.

For a complete version of the BHI study click here

posted by MICHAEL NEROZZI | 09:52 AM | 0 comment

FEBRUARY 17, 2010

Free Our Beer!

With the debate over Pennsylvania's liquor laws heating up, new legislation would finally allow consumers to purchase six-packs of beer at their favorite local grocery store or distributor. Introduced by Sen. John Rafferty, the proposed legislation would be a welcomed relief to beer-drinkers across the Commonwealth who are currently inconvenienced by Pennsylvania's archaic and counter-intuitive liquor laws. This legislation would also provide more business to grocery and convenience stores across the state. The Pennsylvania Food Merchants Association (PFMA) and the Pennsylvania Convenience Store Council (PCSC) have both endorsed Rafferty's reforms.

Rafferty‘s legislation would also require a 100% ID proofing policy for all alcohol vendors to eliminate any concern over underage purchases. As Rafferty noted at a rally today in the Capitol Rotunda, Wegman's supermarkets have been selling beer at their "Market Cafes" since May of 2008, with over 760,000 transactions and not a single violation of LCB policies, largely in part to their own 100% proofing policy. A one-time vendor licensing conversion fee of $25,000 and annual fee of $2,500 would go directly back to alcohol enforcment and compliance.

Furthermore, 75% of Wegman's beer sales were from local Pennsylvania breweries, supporting small businesses right here in our own backyard.

Click here for our recent Policy Brief on the impact of private liquor.

posted by MICHAEL NEROZZI | 08:25 AM | 0 comment