Using the Pennsylvania State Tax Analysis Modeling Program (PA-STAMP), an economic modeling program developed by the Beacon Hill Institute at Suffolk University, the Commonwealth Foundation projects that a 16% increase in the PIT (from a rate of 3.07% to 3.57%) would result in 23,960 fewer jobs next year.

“Today Gov. Rendell revealed that he cares more about growing government than ensuring Pennsylvanians have good-paying jobs,” said Matthew Brouillette, president and CEO of the Commonwealth Foundation. “As every respected economist knows, a recession is the worst time to increase taxes. Doing so now would add thousands more Pennsylvanians to the unemployed ranks.”

“Rendell’s desire to extract more than $4.5 billion out of the economy over the next three years is a continuation of the same failed economic strategy of trying to tax and spend our way to prosperity,” said Brouillette. “Despite increasing state government spending by more than double the rate of inflation, Pennsylvania’s economic growth lags the national average and ranks among the worst in the nation.