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MARCH 8, 2010 | Commentary by MATTHEW BROUILLETTE
Rendell’s War on (Some) Special Interests
Gov. Rendell, of course, didn't declare war on all special interests - only those who oppose his tax-borrow-and-spend agenda. For example, while he lambasts the natural gas industry for opposing yet another tax upon the several it already pays, he gives a pass to the special interests clamoring for more of its money.
MARCH 2, 2010 | Policy Points by NATHAN BENEFIELD
Pennsylvania Deficit Watch: March 2010
The Pennsylvania Department of Revenue reports that through the end of February, state General Fund revenues are $477 million below estimate for the 2009-10 fiscal year.
FEBRUARY 23, 2010 | Policy Points by COMMONWEALTH FOUNDATION
Budget Facts 2010: Pennsylvania State Budget Overview
Pennsylvania faces a projected General Fund tax revenue shortfall of at least $500 million. Governor Rendell proposed a $29 billion General Fund budget for 2010-11, that increases businesses taxes, imposes new taxes on natural gas and tobacco products, and expands the sales tax to many goods and services currently exempt. This is the f
Recent Blog Posts
MARCH 9, 2010
Will History Vanish Without State Spending?
It is an oft-disseminated lie that the government is the needed guardian of our historic sites and museums. Just as the private sector has begun to save our state parks from closing, it too can keep our treasured historic sites alive.
Last year, private donors stepped in to save the site of Washington's Crossing; this kept the re-enactment of the event alive. Boyd Theater was listed as one of America's 11 Most Endangered Historic Places until a private developer purchased and revitalized the building, turning it into part of a hotel. Dickson Tavern, one of the oldest structures in Erie, was vacant for five years until a private architecture and design company purchased the property from the city to renovate it, use it for offices to preserve its history.
As state and federal financial support continues to dwindle, it becomes more and more obvious; the future of our historic sites is not in the government. If the places are valuable to Pennsylvanians, they will be preserved without government support. Private philanthropy and admission fees can and should take the place of government funding.
posted by KATRINA CURRIE | 08:21 AM | 0 comment
FEBRUARY 26, 2010
Tax Foundation Analysis of Rendell's Tax Proposals
Joe Henchman of the Tax Foundation has put together a Fical Fact looking at Gov. Rendell's tax increases in the proposed Pennsylvania state budget. Here is the quick overview:
The budget includes significant tax proposals.
- Broaden the state sales tax and lowering the rate from 6% to 4%. The change would eliminate many unjustified exemptions but would double-tax some retail items by taxing business-to-business transactions. The largest unjustified exemptions (most groceries, clothing, legal and medical services) would remain. The change would be a net revenue increase despite the rate reduction.
- Eliminate sales tax vendor compensation.
- Reduce the corporate income tax rate from 9.99% to 8.99%, eliminate the cap on net operating loss carry-forwards, but impose combined reporting and single-sales factor apportionment. The net result of this package of positive and negative reforms would be an increase in business tax burdens, particularly for out-of-state businesses.
- Impose a new severance tax on natural gas extraction.
- Seek federal aid by increasing unemployment benefits and exploit the federal Medicaid matching fund system.
Click here for the full PDF.
posted by NATHAN BENEFIELD | 11:57 AM | 0 comment
FEBRUARY 22, 2010
How Rendell's Cigar Tax Will Hurt Pennsylvania Businesses
For the second year in a row, Gov. Rendell has proposed a tax on cigars and smokeless tobacco, assuming this will have no impact on jobs or the economy. (As I pointed out last year, Rendell's logic seems to be that taxes on businesses only hurt the economy when they are imposed on his friends, like Hollywood filmakers).
The blog "Stogie Guys" points out that online cigar retailers, which have set up shop in Pennsylvania, may choose to move.
A disproportionate number of online cigar wholesalers call Pennsylvania home, including Famous Smoke Shop, Cigars International, and Holt’s. This isn’t a coincidence. Along with Florida, the Keystone State is the only one without a cigar tax. But Pennsylvania Gov. Ed Rendell (pictured) recently proposed a budget that includes new excise taxes on cigars and smokeless tobacco. When a similar tax was proposed last year, Keith Meier, CEO of Cigars International, said his $90 million company with 150 employees might “swim to sunnier shores, such as Florida” if adopted.
posted by NATHAN BENEFIELD | 08:45 AM | 0 comment
