Can Pennsylvaina's economic slide be stopped?

WILL POLITICIANS EMBRACE REFORM OR ADOPT THE DETROIT PLAN?

BIG TEST FOR BOTH PARTIES

 

 

We are informed that tax revenues in the state are declining, that the population is shrinking, and there is no turnaround in sight. Will the politicians go with their programed instincts and raise taxes or will they work together to make economic reforms that will allow the state to be competitive and increase economic activity.

 

Personal income is reported to be 3% below estimates, this is a real indicator as to the financial health of the citizens, of course if the citizens earned less money, that translates into the sales tax revenues down 2.3%, which has a consequence of corporate income and corporate tax collections also down. Without any doubt we will now hear that taxes will now need to be raised, this will take more money out of the citizens pockets, cut sales and corporate profits and the death spiral will escalate. More people will migrate out of the state for better economic opportunities and lower taxes. This is the Detroit Plan, copied many times by the major cities in this country.

 

They will most likely talk of the need for courage to raise taxes and continue with the status quo. Courage would be to get to it, with pension reform, tax reform to make the state more competitive, and notices to all department heads to cut 5% from their budgets.  The State just doesn't have the money. They have already massively raised gas taxes and fees for most government services. I don't think I have seen were they eliminated the prevailing wage laws to open up competition by contractors to save money for the taxpayers. I don't recall a massive effort to make the government more efficient. But I am sure we will see a massive effort by the politicians and the media to raise taxes. To hell with the next generation of Pennsylvanians, as long as they can all continue their pensions perks and jobs for the bureaucrats. After all, after they retire, they will all be set for life and be able to move to a more enticing low tax state.