The Pennsylvania Manufacturers’ Association Tom Armstrong, Policy Director March 2003 THE SILENT KILLER

Pennsylvania Manufacturing Employment Source: Bureau of Economic Analysis, US Department of Commerce preliminary data is from the Bureau of Labor Statistics (February 2003) employment is seasonally adjusted.

Pennsylvania Business Taxes

The Silent Killer…

Average Annual Increases, Total PA State Operating Expenditures vs. Inflation:

PA Change in Population Vs. PA Change in Government Employees Source: US Census Bureau

PA’S SLOW JOB GROWTH Pennsylvania lagged national growth in almost every occupation. Pennsylvania is expected to continue this trend… …unless something changes.

PA Employment Growth by Industry Source: Bureau of Economic Analysis, US Department of Commerce

Projected PA Employment Growth by Industry

THE SILENT KILLER 1. PA’s Poor Economic Performance: Slow economic growth 2. High Government Spending & Taxation: Killing economic opportunity in PA 3. PA’s Slow Job Growth: PA’s working age population will continue to seek opportunities in other states resulting in PA having stagnant population growth along with the 2 nd oldest population behind FL 4. Reverse the Silent Killer: Government spending and taxation needs to be reduced for greater economic opportunity for PA’s job creators and citizens

TOP 10 RECOMMENDATIONS 10.Expand Keystone Opportunity 9. Retain the R&D Tax Credit by Repealing the Sunset Date & Cap 8. Reduce the Corporate Net Income Tax to 5.99% 7. Continue and Accelerate the Phase-Our of the Capital Stock and Franchise 6. Enact a Statute of Repose

TOP 10 RECOMMENDATIONS 5. Unemployment Compensation Reform 4. Place Caps on Non-Economic Damages of $250,000 or Less 3. Employer/Employee Restrictions Relief 2. Reduce and Change State and Local Annual Government Spending Bases on Economic Principles

TOP 10 RECOMMENDATIONS And, one more needed economic reform in Pennsylvania: 1. ENACT TAXPAYER PROTECTIONS