Unfortunately, after taking office in 2003, Rendell made Pennsylvania one of the top 10 tax-hiking states. Although it was worse before Rendell took office, still we are now ranked only an anemic 38th in job creation among states and 41st in personal income growth. All of which adds to the mountains of evidence that lower taxes and less government lead to prosperity and opportunity, and higher taxes and more government lead to economic stagnation and relative decline.
Instead of learning from his mistakes of the last four years, last week the governor proposed further expansion of state government, new entitlements, and higher spending, which can lead only to still higher taxes and more jobs going to other states.
Too often in recent years, the Republican-controlled legislature has gone along with Rendell's tax and spending increases. But last November, voters elected many new faces, which resulted in new leadership in both chambers. Now is the time for the legislature to assert its responsibility to help shape solutions for Pennsylvania's problems and to reject proposals that will just make matters worse.
They should start by making Pennsylvania the most attractive state in the country to create new and better paying jobs. A strong job market would lead to rising incomes, vibrant communities, and opportunities for young Pennsylvanians to stay and prosper in their home state.
As we have seen time and again across the country, strong job growth depends on low taxes and less regulation. Yet Pennsylvania imposes a harsh mix of expensive, complex, and counterproductive taxes on any company trying to create jobs here.
As a first step, the legislature should immediately repeal the most onerous of these taxes - such as the remaining capital stock tax, which taxes even businesses losing money.
