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‘Rich States, Poor States’ study gives dismal outlook on Pa. business policy
Newly signed laws good start; but more needs done to improve job creation, competitiveness For the fourth consecutive year, the American Legislative Exchange Council released its ‘Rich States, Poor States’ study, which examines the economic status of the 50 states and weighs each state’s existing business climate and outlook for future economic prosperity. This year, the group of fiscal experts ranked Pennsylvania 37th in the nation in terms of economic performance and 41st relative to economic outlook. The dismal 41st in economic outlook was derived from 15 determining policy variables. It analyzed Pennsylvania’s personal and corporate income tax rates; tax burdens, including property and sales tax; the status of the state liability system based on tort litigation and judicial impartiality; the fact that Pennsylvania is not a right-to-work state, and costs for workers’ compensation. The study’s results mirror a recent Chief Executive Magazine survey of 500 nationwide CEOS, which ranked the Commonwealth 39th for business friendliness. The state was also highlighted as one of five with the biggest drop in the rankings over the past five years. Both reports cry out for a change in public policy direction. The PA Chamber, working with a like-minded administration and legislative leaders, is working to ensure progress in the mission to improve the Commonwealth’s policies toward job creation and economic growth, bringing them in line with competing states. These include suggestions to streamline Pennsylvania’s uncompetitive tax structure. The ‘Rich States, Poor States’ study’s underlying assessment is that a state’s level of taxation has an inverse relationship to its ability to grow the economy. The PA Chamber is also seeking to reform unbalanced and over-reaching laws that have historically put Pennsylvania at a disadvantage in fostering business and job growth. To date, a number of legislative accomplishments have been realized, including improvements that will bring cost-control to the unemployment compensation system; Gov. Tom Corbett’s recent signing of the Fair Share Act; a state budget that begins to rein in government spending, to name a few. PA Chamber members support and will continue to push for commonsense policies that give the private sector the tools it needs to grow jobs and solidify economic recovery. Click here to read the ‘Rich States, Poor States’ report in its entirety.
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