Analysis: Senate Tax Hikes Would Cost 3,600 Jobs, $1 Billion in Income
Broad-Based Taxes Would Stifle Economic Growth
August 9, 2017, Harrisburg, Pa.â€"In July, the state Senate narrowly approved a $600 million tax-hike package, raising taxes on home heating, natural gas drilling, electricity, and even cell phone service. The bill comes to $180 per family per year.
If enacted, the tax hikes would cost Pennsylvania families 3,600 jobs, $932 million in disposable income, and $142 million in lost business investment in the first year alone, according to a State Tax Analysis Modeling Program (STAMP) provided by economists at the Beacon Hill Institute.
â€œTax hikes donâ€™t happen in a vacuum,â€ commented Nathan Benefield, vice president and COO for the Commonwealth Foundation. â€œThey have real-life impact, often to a devastating degree.â€
The STAMP analysis also showed year-to-year job and income losses Pennsylvanians would experience if the Senate tax hike becomes law.
â€œRaising taxes to balance a bloated budget is a failed approach,â€ Benefield continued. â€œIn the past eight years, state government has hiked taxes on Pennsylvanians four times at a cost of $4 billion. Yet, here we are again, listening to the same broken-record claim that tax hikes will fix our budget problem. The problem isnâ€™t too few taxes; itâ€™s too much spending. General Fund spending has increased nearly $3 billion in the past three yearsâ€"and thatâ€™s not even counting spending that has been shifted off-book. Indeed, last yearâ€™s spending increase alone totaled $1.9 billion.
â€œTax hikes on hardworking Pennsylvanians arenâ€™t the solution to reckless spending. Any proposal that would kill thousands of jobs and cut familiesâ€™ disposable income should be dead on arrival in the House. Instead, lawmakers must rein in governmentâ€™s bloated budget before raiding familiesâ€™ budgets.â€
Nathan Benefield and other Commonwealth Foundation experts are available for comment. Please contact Gina Diorio at 862-703-6670 or [email protected] to schedule an interview.
# # #
The Commonwealth Foundation transforms free-market ideas into public policies so all Pennsylvanians can flourish.
Commonwealth Foundation, 225 State Street Suite 302, Harrisburg, PA 17101 United States