Taxing Policies – PA
By The Tribune-Review
Tuesday, Nov. 18, 2014, 9:00p.m.
study by a Duquesne University professor affirms what liberals
perpetually deny: Higher taxes pushed by the tax-and-spend crowd
create less, not more, economic growth.
Specifically, higher state taxes lead to lower gross state
product, fewer new businesses and, ultimately, less per capita
income, according to an analysis by Pavel A. Yakovlev, a
professor of economics and a member of the Commonwealth
Foundation Council of Scholars.
Pennsylvania politicians who bank on brighter days with an
extraction tax on Marcellus shale are fooling themselves if not
deceiving the public they serve.
According to Mr. Yakovlev’s research, states with higher taxes
and more spending have slower economic growth. That outcome is
abundantly clear in Pennsylvania, with the 10th-highest tax
burden in the country.
While Pennsylvania’s taxes and spending increased from 1970 to 2012,
economic growth fell below the national average, the
Commonwealth Foundation reports.
“Not all tax variables exhibit a significant correlation with the
selected measures of economic activity, but when they do, the
relationship is usually negative,” wrote Yakovlev in his
analysis for George Mason University’s Mercatus Center.
Pennsylvania doesn’t need more or higher taxes. What’s sorely
needed is a low-tax policy that encourages economic growth and,
with that, more tax revenues.
November 21, 2014