Recently, CF’s Elizabeth Stelle appeared on WNPV Radio’s “Regarding Your Money” with host George Toth to discuss Pennsylvania’s growing deficit. Our budget deficit this year is projected to pass $500 million. With pressure to raise taxes, Gov. Wolf and lawmakers may be tempted to look for ways to bring in more revenue rather than reduce spending.
Elizabeth urges lawmakers and Wolf to avoid tax hikes and instead look to restructure government. Specifically, she offers a number of reforms to address spending, including corporate welfare reduction and full liquor privatization.
Pennsylvania gives about $800 million in corporate welfare to companies all over the state, with little evidence that this spending helps job growth or stimulates the economy. Adam Millsap, Research Fellow at the Mercatus Center, found the unseen consequences of corporate welfare often inhibit overall economic growth. Elizabeth explains why reducing or eliminating corporate welfare should be a priority for lawmakers.
Full liquor privatization, meanwhile, would not only enhance consumer choice and convenience but also generate revenue for the state through the auctioning of wholesale and liquor licenses.
Raising taxes has been tried, and an enormous debt still looms over us. Elizabeth explains why we must fix the fundamental spending problem, not just the symptoms.
Click here or listen below for the full interview: