Nathan Benefield posted on 3/15/2011 11:49:00 AM
Despite what the Liquor Store union says, almost all of the money the state stores "make" for the state are from taxes on alcohol sold--these would remain under privatization. Any "profit" from the government monopoly from the markup on the cost of alcohol is likewise just an implicit tax on liquor. The new taxes under privatization, along with the taxes (corporate, income, property, payroll, etc.) that business pay that government stores don't, as well as the increased revenue from ending border bleed would more than offset current revenue. Then you have a $1 to $2 billion up front windfall.

School choice--when you consider than the Educational Improvement Tax Credit scholarship are about $1,000 per student and the voucher amount in SB 1 would be $5,000 per pupil - it should be pretty clear how this saves money over the $13,000 school districts spend per pupil.

Devin posted on 3/13/2011 11:22:00 AM
I have a few questions about your article. How does getting out of the liquor business help the budget. I've been under the impression that the liquor business is a money maker for PA. While I don't think that booze is part of the business of government, I don't see the value in selling a money maker in a time of need.

Second, how do we draw a parallel between school vouchers and education savings? I see lots of ways that school choice theoretically increase schooling results but, I don't see how overall costs would go down?

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