Pennsylvania's Tax Problem (and America's)

Our corporate tax structure (when combined with the U.S. rate) is higher than France...

The Commonwealth Foundation, a free market think tank on Pennsylvania issues, hosts the Tax Foundation and State Representative Mike Turzai (R-28) in a policies luncheon.
"Stimulating the Economy"


Noteworthy remarks from President Scott Hodge, Tax Foundation:

• U.S. Dept. of Labor statistics: Only 1% of all job layoffs are the result of international outsourcing. 99% of job transfers are from one U.S. state to another-- from Northeast to the Southwest, Midwest to Southeast, from California to Nevada.
• "You have more to fear from Indiana than you do from India when it comes to competition."
• The United States has the second-highest overall corporate tax rate among the industrial countries. Only Japan is worse.
• When you add PA's corporate tax rate (9.99%) with the U.S. corporate tax, PA has the second-highest overall corporate tax rate in the world (second only to Iowa), and higher than France.
• Hodge argued that lowering tax rates is better than targeted tax incentives (like economic development zones). (This is very important in light of the Comcast skyscraper in downtown Philly).
  
• "Targeted tax incentives are to a state's economy what steroids are to the human body: they produce short-term results that eventually weaken the bones, cause heart failure, and in some cases impotency. Does that sound like the Pennsylvania economy? Maybe."
• "These kind of packages send a signal to the marketplace that I don't think is a positive. Number one: you're telling the marketplace that your tax system is so bad that you need tax abatements--essentially bribes--to get businesses to locate to your state. You're also telling your indigenous businesses that they're chumps for staying here and paying higher taxes in order to subsidize another business with better political connections. That's not a real good signal to send."
  

How does Pennsylvania measure up? The Tax Foundation's fact sheet:

• 2008 Business Tax Climate Index (all aggregate taxes): PA ranks 27th (Ohio: 46th, New York: 48th, New Jersey: 49th, Delaware: 9th).
• Corporate Tax Rate: PA is second highest nationally (and second-highest among OECD).
  
• Aggregate Local Taxes: PA is 24th highest nationally.
• Property Taxes: PA is 21st highest (Ohio: 27th, New York: 4th, New Jersey: 1st, Delaware: 43rd).
  
• State Individual Income Tax: PA is 18th highest nationally.
• State Gasoline Tax: PA is 4th highest nationally.

Hodge had two general comments about PA's economy: we're mediocre, "Hey, you know, somebody's gotta be average so the rest of us can feel superior," and we're lucky (in that our neighbors are doing worse than we are save Delaware, but even this isn't something to be proud of.)

March 27th Party

Drexel Republicans,

If you plan on being in town during spring break, let me invite you to join us for a party with the Philadelphia Young Republicans:

Thursday, March 27th at 7 P.M.

Liberties Restaurant
705 N. 2nd Street Corner of N 2nd St & Fairmount
Philadelphia PA 19123
215-238-0660

Details:

Click here to check out
The Philadelphia Republican Party Meetup Group!

Pennsylvania College Republican State Convention

Drexel Republicans,

Please consider joining us for the annual state convention of the Pennsylvania Federation of College Republicans.

This fun and exciting event enables you to meet College Republicans from across our state as well as hear from leading conservative leaders.

The convention will be held this year at the University of Pittsburgh on March 28th and 29th (the end of spring break). The Drexel College Republicans will provide transportation. Room and board costs will be covered on a limited basis, so register with us now in order to save your spot!

Contact Chairman Ivan Skakun (is58@drexel.edu) or Chairman Emeritus William Mulgrew (wjm28@drexel.edu) and provide your name and phone number to register.

Debate Rebuttal: Exposing Democratic Lunancy

Hey everyone. I wrote a devastating rebuttal to the Democratic debate for The Triangle. You can read it here.

Here's an excerpt:

I learned that Rep. Kucinich saw a UFO. I learned that Sen. Clinton can change her position under two minutes. I learned what Sen. Obama was going to wear for Halloween (a Mitt Romney mask). And I learned that Sen. Biden, who represents Delaware (population: 850,000), thinks Rudy Giuliani is "the most under-qualified man to run for president," even though he's the former mayor of New York City (population: 8,000,000).

I am, however, glad that all seven Democratic candidates came to Drexel University: they need to enroll for remedial classes on economics, health, and public policy.

Let's start with health care.

America's health care system is like Drexel's cafeteria. Instead of paying for what you consume, you're charged a flat rate. This encourages over-consumption, thereby driving up costs. When I visited the cafeteria today for the first time in three years, I noticed that students went back for seconds and thirds, forcing students who haven't even gotten their firsts to wait in line.

...And We're Up!

Just in time for the Democratic Presidential debate at Drexel University, we've launched a brand new blog! I'm excited over how this will help us reach students with a message on who we are: a political party committed to America's cultural heritage, international freedom and democracy, individual responsibility, free enterprise and federalism.

Feel free to contact me if you're interested in helping us organize: wjm28@drexel.edu.

Yours,

William Mulgrew, Chairman Emeritus