RCAP and Corporate Welfare Hurt Pennsylvanians

What would you do if the government spent your tax dollars on a project that could bankrupt your business? Would you fight back by pointing out the injustice? Hopefully you’re never faced with such a decision.

But unfortunately, for some Pennsylvanians, this hypothetical is all too real. 

In a recent example, Lebanon Valley Cancer Center’s (LVCC) amicable relationship with Good Samaritan Hospital in Lebanon, PA hit a speed bump when Good Samaritan received a $3 million government grant that could put LVCC out of business.

As reported by abc27 News, Good Samaritan plans to build a new cancer care facility with this public money. Cancer centers are a laudable contribution to the health of our communities and the commonwealth, but the radiation oncology center will duplicate the services already provided by LVCC.

A Redevelopment Assistance Capital Program (RCAP) grant, could, as LVCC representatives argue, destroy an established, local, and privately-funded small business that has served the community for 24 years. 

One LVCC reprsentative put it plainly in an interview with abc27:

“Inevitably, if they go through with this, it will put us out of business,” said Susan McCoy, Lebanon Valley Cancer Center office manager.

This is one prime example of the ineffectiveness of the RCAP program. RCAP, and other “corporate welfare” type projects result in government picking winners and losers, which hurts our economy.

Last year, the General Assembly was on the right track when in lowered the program’s debt ceiling to $3.75 billion. This debt ceiling reduction and other reforms establish greater accountability within the program, but more can be done.

Instead of picking winners and losers, lawmakers should eliminate RCAP and other corporate welfare programs to balance the budget, paving the way for lower taxes. An overall tax rate reduction would benefit hardworking Pennsylvanians without playing favorites.

For more information on how to make Pennsylvania prosperous and fiscally sound, check out our Blueprint for a Prosperous Pennsylvania.