‘Growing the Pie’ Shouldn’t Come at the Baker’s Expense

Tuesday, March 27, 2012

HARRISBURG, PA – The Pennsylvania Chamber of Business and Industry today said the Pennsylvania Budget and Policy Center’s call to "grow the pie" of state revenues through tax increases and delayed tax reductions, etc. is the wrong recipe for the Commonwealth’s fiscal challenges, and stressed that the only way to grow the economy – to grow the pie – is to create a climate that will grow private sector jobs.

"You cannot make a pie by taking the dough away from the baker," PA Chamber President Gene Barr said. "The right ingredients are a streamlined, more efficient state government and policies that encourage businesses to invest in and be successful here. This will produce the higher economic output and the revenue our state needs – not the other way around."

On Monday, March 25, the organized labor-leaning PBPC and a coalition of social services groups held a press conference to push for more revenue for government programs through higher taxes on businesses, including a freeze in the ongoing (and long overdue) phase-out of the Capital Stock and Franchise tax – a harmful tax on businesses assets regardless of whether or not a business makes a profit.

"The Pennsylvania Budget and Policy Center’s answer to everything has always been more and higher taxes," Barr said, noting that the group previously has supported raising the Personal Income Tax, which would impact businesses and individuals. "Everyone recognizes that the Commonwealth faces tough economic times. What PBPC fails to realize is that a healthy private sector is what grows the state’s economy through new investments and job creation, not a private sector burdened by higher, uncompetitive taxes."

Barr said if the state is to have a robust revenue pie at all, groups such as the Pennsylvania Budget and Policy Center should stop pushing for policies that will effectively chase the bakers out of Pennsylvania.


The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business advocacy organization, with its statewide membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of Business™.