Put Pennsylvania on a spending diet.
Pennsylvania’s fiscal and economic health is harmed by overspending by state government. It is time to put Pennsylvania on a spending diet. By adopting a balanced approach to spending increases in Harrisburg, we can restore state government to its proper roles and functions in our lives—and, in the process, expand the financial well-being and economic prosperity of all Pennsylvanians.
The Pennsylvania Diet Plan is a three-step program to stopping the overspending in Harrisburg and putting our commonwealth back on a path toward fiscal and economic health. It is a plan that will help state government shed millions and billions of dollars in unnecessary and wasteful spending.
Step One: Limit the Annual Growth in State Government Spending
It is a fact that states cannot tax, borrow, and spend themselves to prosperity. When politicians choose to grow the government, they effectively choose NOT to grow the economy. By limiting the annual growth in state government spending to a reasonable index of inflation plus population growth, elected officials allow job creators and families to keep more of their money to invest, save, and spend.
Taking the First Step: The Commonwealth Foundation has proposed model legislation for Spending Limits. The Pennsylvania House and Senate each have pending legislation that would restrain the growth in state government spending include which would also constitutionally limit annual spending increases.
Step Two: Empower Voters with the Right to Accept or Reject ANY and ALL Tax Increases
Shouldn’t the people who must pay higher taxes for increased government spending have the opportunity to accept or reject those proposals? By empowering citizens with the right to vote on each and every tax increase, elected officials will receive explicit confirmation from voters about how much government they want.
Taking the Second Step: The Commonwealth Foundation has proposed model legislation for Taxpayer Control. Currently pending legislation would empower citizens with the ability to vote on any and all tax increases and would subject all property tax increases to voter approval.
Step Three: Reduce Pennsylvania’s Tax Burden on Job Creators & Families
Businesses don’t pay taxes any more than our homes or property pay taxes—only people pay taxes. So when Pennsylvania has some of the highest business taxes in the nation, it is the citizens of the commonwealth who ultimately pay the price. Additionally, every Pennsylvania worker felt the impact of a nearly 10% increase in the Personal Income Tax in 2004. Reducing the tax burden on job creators and families will improve the fiscal and economic health of Pennsylvania. But reducing taxes will also require a reduction in wasteful and unnecessary spending.
Taking the Third Step: The Commonwealth Foundation has proposed model legislation for Tax Reduction, as well as proposed Spending Reductions. Several bills in the legislature have been introduced to reduce the state Personal Income Tax rate, the Corporate Net Income Tax rate, and the Gross Receipts Tax on cell phones and other telecommunications.
