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Tax, spending reform must remain priorities

We hope our state lawmakers and staff within our governor’s office will take note of an analysis of some recent data by J.D. Tuccille for Reason magazine.

Of the 25 states with the lowest tax burdens in state and local taxes, 18 are seeing their populations steadily rise. Of the 25 states and Washington, D.C., that have higher tax burdens, 17 are seeing more people leave for other states than choose to relocate there.

Pennsylvania, which ranks 28th for lowest tax burden, should reflect on these numbers when debating what changes to our state’s tax system are necessary — and what government spending is necessary.

As Tuccille’s analysis notes, the tax burden is heavily interconnected with other economic realities. Beyond whether a family wishes to pay lower or higher taxes, the industries that create the jobs families need to thrive see investment in lower tax climates as more prudent. And as employers and workers both flee to cities and towns with more reasonable expectations regarding taxes, the remaining population is further strained to continue to provide the revenue needed to enable high spending.

Tuccille notes that, unfairly or not, this dynamic is further compounded by wealthier households having the greater ease in choosing whether to relocate.

“Over the course of more than a century, people have tended to move away from high tax states and take up residence in low-tax states,” Tuccille writes. “That’s especially true for those with the most skin in the game and the greatest ability to pick up and relocate.”

All of this data — and assessment of it — points to one clear truth of which we can only hope our legislators and state officials are aware: Spending and tax reform remain vital to position our region and state for a successful future. Tax-and-spend policies will only ensure successes for distant towns, over and far from Pennsylvania’s state lines.

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