Rendell calls CF’s job loss numbers “BS”
Last night, Gov. Rendell defended his tax increase proposals on WITF’s state-wide broadcast. Lt. Gov. Joe Scarnati also challenged the Governor’s efforts to sell “snake oil”. But when Nell McCormack Abom used our job loss projections, the Governor got a bit agitated and called them “BS”, “a red herring”, “specious”.
He went on to argue that no company would reduce jobs because they lose only â€œ$10â€? per week. The Governor used an example of a small business earning $100,000. This, however, represents a one-person, or maybe a two-person business â€“ not a good example of PAâ€™s small business community. The overwhelming majority of businesses that will be hit by his 16% increase will lose far more than $10 per week because they employ many more people than themselves.
But letâ€™s accept that it will only be $10 per week for a small business. That adds up to over $500 per year. What if that business decides not to buy a new copier this year because of the $500 loss in capital? And what if a few other businesses make the same decision? Obviously, as fewer people buy copiers, the business selling copiers will eventually be harmed. But donâ€™t forget, that copier business was also hit by tax increase. So not only is that business doing with $500 less, but it now has even less revenue. So that businessman not only stops buying products or services for his business, but also has to let someone go or reduce their benefits because heâ€™s lost far more than the $500 that Governor Rendell says he can afford.
Of course, multiply this scenario hundreds of thousands of times across the Commonwealth, and you understand that extracting $1,500,000,000 out of our economy will have a harmful effect on our job creators. And thatâ€™s no â€œBSâ€?, Governor.
Watch Gov. Rendell selling his “snake oil” and Lt. Gov. Scarnati here.