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Thursday, June 25, 2009

Rendell calls CF's job loss numbers "BS"

Last night, Gov. Rendell defended his tax increase proposals on WITF's state-wide broadcast. Lt. Gov. Joe Scarnati also challenged the Governor's efforts to sell "snake oil". But when Nell McCormack Abom used our job loss projections, the Governor got a bit agitated and called them "BS", "a red herring", "specious".

He went on to argue that no company would reduce jobs because they lose only “$10” per week. The Governor used an example of a small business earning $100,000. This, however, represents a one-person, or maybe a two-person business – not a good example of PA’s small business community. The overwhelming majority of businesses that will be hit by his 16% increase will lose far more than $10 per week because they employ many more people than themselves.

But let’s accept that it will only be $10 per week for a small business. That adds up to over $500 per year. What if that business decides not to buy a new copier this year because of the $500 loss in capital? And what if a few other businesses make the same decision? Obviously, as fewer people buy copiers, the business selling copiers will eventually be harmed. But don’t forget, that copier business was also hit by tax increase. So not only is that business doing with $500 less, but it now has even less revenue. So that businessman not only stops buying products or services for his business, but also has to let someone go or reduce their benefits because he’s lost far more than the $500 that Governor Rendell says he can afford.

Of course, multiply this scenario hundreds of thousands of times across the Commonwealth, and you understand that extracting $1,500,000,000 out of our economy will have a harmful effect on our job creators. And that’s no “BS”, Governor.

Watch Gov. Rendell selling his "snake oil" and Lt. Gov. Scarnati here.

3 comments:

Nathan Benefield said...

Rendell was right about one thing - "The unemployed don't pay the PIT".

I guess we can thank him for reducing the number of people paying higher taxes by eliminating their jobs.

Nathan Benefield said...

Another Rendellism, "That ranking [PA has the 11th highest tax burden] doesn't included property tax relief from gaming".

False
- It Does
- Property Taxes are $3 billion higher than when gaming was enacted
- "Gaming revenues" are a tax on gambling

martintfre said...

I See that Rendell is heavily into budget reductions.
He is reducing the budgets of productive entities state wide so the parasitic state can suck us dry.

So how many business are clammering to move to Pennsylvania because we are one of the most highly taxed and regulated states?