DV Journal

EDITOR’S NOTE: For another view, see “McGarrigle: Why Voters Should Vote for Republicans.”

On Tuesday, November 8, Americans will once again head to the polls to exercise one of our most important rights – the right to vote. This year, however, the stakes are higher than they have ever been before as the differences between candidates go beyond policy.

Rather, we are choosing between those who believe in truth, democracy, and freedom and those who embrace dangerous election lies, hateful rhetoric, and political violence. The best way to protect our democracy, keep the government out of our bedrooms and doctors’ offices, and stop the spread of MAGA extremism is to vote for Democrats up and down the ballot.

It should come as no surprise that in normal election cycles, I also strongly believe that voting for Democrats is the best decision. Ordinarily, that is for policy reasons. But there is nothing ordinary about this year. We have one party – the Republican Party – that has been taken over by far-right extremists, including some calling for violence against our elected officials and institutions.

The Republicans are not even pretending to appeal to moderates anymore. Their platform calls for, among other things, a national ban on abortion; support for total and absolute gun rights; rejection of sound climate science and backward-looking energy policies that prop up the fossil fuel industry; drastic cuts and changes to Social Security, Medicare and Medicaid relied on by millions of citizens; elimination of the Affordable Care Act which would lead to loss of insurance and coverage for pre-existing conditions for millions of Americans; and, of course, more tax cuts for the wealthiest Americans and corporations, forcing the tax burden down onto middle-class Americans and shockingly, even the poorest among us.

Moreover, we have the continued assault on our electoral system based on the “big lie” created by former President Donald Trump and his allies. We are learning every day just how deep and terrifying this assault really is. Across the country, Republicans are trying to take over election boards, county commissions, city councils, and school boards to force their dangerous view of the world on the rest of us.

We are seeing these forces at work right here in Pennsylvania where the Republican candidate for governor, Doug Mastriano, has made controlling elections, through his power to appoint the secretary of state and certify voting machines, a central tenet of his campaign. He supports a complete ban on abortion, with no exceptions for rape, incest, or even the health of the mother, and even supports charging a woman who had an abortion with murder.

His historically extreme education policy would cut public education funding by half and he has vowed to turn Pennsylvania into the Florida of the North. No, thank you. Beyond Harrisburg, our U.S. Senate and House races are also vital for protecting our democracy. If Republicans take control of the U.S. House and Senate all progress stops in terms of fighting inflation, global warming, women’s rights, common-sense gun control, civil rights, and protecting our elections.

That’s why we here in Chester County need to throw our support behind Democratic candidates at all levels, from our state legislature, to governor, to the House of Representatives, to the U.S. Senate. Our very democracy is on the ballot in November and there is only one party intent on preserving it, for everyone.

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Democrat Josh Shapiro promises to cut taxes if elected governor.

Specifically, Shapiro says he would cut the cellphone tax, send $250 gas tax rebates to car owners, and expand the property tax and rent rebate program. Both Shapiro and his Republican opponent, state Sen. Doug Mastriano, agree the state’s corporate taxes  — the second highest in the country — should be reduced to attract businesses and jobs.

But Shapiro had a record of raising taxes when he served as a Montgomery County commissioner, despite promising voters during the campaign that he would not.

Shapiro voted to raise Montgomery County property taxes in 2015 and 2016 by a total of 21 percent. In 2015, Shapiro had just been re-elected as commissioner and in 2016, he had been elected as attorney general and was leaving his county post when he voted to again raise taxes.

Before being elected county commissioner, Shapiro pledged not to raise taxes.

In 2016, Joe Gale, the minority Republican Commissioner, called the tax increases “a money grab.”

Gale pointed out that in addition to hiking property taxes, Shapiro and Commissioner Val Arkoosh also voted to increase health inspection fees on businesses by 2 percent over three consecutive years. And Shapiro voted to increase the vehicle registration fees for county car and truck owners. The two Democratic commissioners also voted to increase the hotel tax by 100 percent. Shapiro voted to institute a separate community college levy, having the taxpayers pay for it separately and removing the county’s contribution to the college from the general fund, freeing up $22 million, said Gale.

“Josh Shapiro campaigned for county commissioner on a no-tax pledge, yet within weeks of being re-elected commissioner, Shapiro voted to increase taxes by 10 percent,” Gale said at the time. “Just a few weeks after being elected to his new position (attorney general), he’s increased taxes by 11 percent.”

Gale said, “There’s a pattern here. You elect Josh Shapiro on a Tuesday and the next week you’re hit with a double-digit tax increase…A 21 percent tax increase over the course of two years is outrageous.”

Skippack resident Mike Marino, a former Montgomery County Commissioners chair, said Shapiro “imposed an assessment as a contribution to Montgomery County Community College. It appears on my county bill of over $100 each year. It was a sneaking way of raising your taxes without calling it a tax. He is a typical Democrat that constantly raises taxes and then states that he does not. Just another attempt to deceive the public. Exactly the same tricks as Joe Biden.”

For his part, Shapiro tweeted on June 22, “As county commissioner, I inherited a deficit – so I got to work. I balanced our budget, and by the end of my term, Montgomery County was back on track to financial stability. Experience matters.”

Shapiro’s campaign did not respond to a request for comment about Shapiro’s record on taxes.

Gale, who had also run for governor but lost to Mastriano in a crowded Republican primary, added, “Josh Shapiro is, and has always been, a tax and spend liberal who has never seen a money grab he didn’t like. Once elected governor, he will grow the size of government and the already bloated state budget.”

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President Joe Biden signed the Inflation Reduction Act — now being called the “Climate, Healthcare, and Taxes Act” by some — on Tuesday, drawing mixed reactions. Whether it would help or hurt Americans depended on party affiliation.

The mammoth $739 bill will impose a minimum of 15 percent in corporate taxes and a 1 percent excise tax on stock buybacks. It will also unleash 87,000 new IRS agents, cap insulin costs for Medicare recipients, and shovel billions in tax subsidies to “green” projects.

“Hide your wallet! The left’s behemoth tax hike and spending law will do nothing to help struggling Americans,” said Brooke Rollins, president and CEO of America First Policy Institute. “It will only make a bad situation worse. Americans deserve prosperity, economic growth, and energy independence — and that’s exactly what they aren’t getting from the Biden administration. Now, out-of-touch liberals in Washington, D.C. are delivering tax hikes, more reckless spending, and an army of 87,000 IRS bureaucrats to grab more from families who have less. Recently, 369 economists signed a letter organized by AFPI that expresses how this bill will worsen inflation.”

Sen. Pat Toomey (R-Pa.) released this statement when the Senate passed the bill. “Last year, Democrats jammed through trillions of dollars in reckless spending that fueled the worst inflation in 40 years. Now, Democrats insist on pouring fuel on the fire with another partisan tax-and-spending spree that will only further exacerbate a recession we’re already likely in.

“To fund new ‘green’ corporate welfare and give Obamacare subsidies to wealthy Americans, this legislation forces short-sighted tax hikes on American businesses and imposes innovation-crippling price controls on life-saving medicines. And contrary to the bill’s name, non-partisan analysts have confirmed that it does nothing to alleviate the inflation tax Americans are feeling every day,” said Toomey.

Rep. Madeleine Dean (D-Montgomery) tweeted after the House approved the proposal, “We’ve passed the Inflation Reduction Act! For families, seniors, and our future. That’ll lower health care costs, cut prescription drug prices, including capping Medicare insulin at $35 — and the largest investment in our climate. We all should be proud of this work.”

After voting for the bill, Rep. Mary Gay Scanlon (D-Delaware/Philadelphia) said, “The Inflation Reduction Act is a historic victory for Pennsylvania families and for our planet: delivering the investments we need to keep down health care costs, reinvigorate American manufacturing, and drive our transition to a clean energy economy. Importantly, the bill is fully paid for by ensuring that corporations can’t dodge their taxes – while ensuring that not one middle-class Pennsylvanian or small business pays a cent more in taxes. This legislation is a monumental step forward in House Democrats’ fight to build a fairer, cleaner economy, as we remain committed to putting People Over Politics: lowering costs, creating better-paying jobs, and building safer communities for all.”

Dave Galluch, the Republican running against Scanlon, said, “Despite its name, the bill does little for working families. Even Sen. Bernie Sanders (I-VT) has said the bill ‘will, in fact, have a minimal impact on inflation.’ That sentiment is confirmed by the Congressional Budget Office (CBO). So, we must ask – how does spending an additional $700 billion, raising taxes on working families, and hiring more IRS agents bring down inflation? Without mentioning spiraling costs for families, my opponent Mary Gay Scanlon celebrates this bill as the ‘the largest-ever federal effort on climate change.’ The legislation primarily consists of subsidies for green technology like solar panels and electric vehicles. Yet the average cost of installation for solar panels is nearly $20,000. The $4,000 and $7,500 tax credits for used and new electric vehicles will do little to reduce a current average price of roughly $66,000.

“This bill does nothing to help those struggling in the Fifth Congressional District now. It is another example of failed, out-of-touch leadership we must move on from this November,” Galluch said.

Guy Ciarrocchi, the Republican running for Congress against Rep. Chrissy Houlahan (D-Chester) said, “The number one issue for everyone is Inflation. That’s why I would have been an emphatic “No” vote on Biden’s so-called ‘Inflation Reduction Act.’ From Wharton to CBS, analysts have stated that the spending bill won’t lower inflation—in fact, it might make inflation worse.

“What we need is $2 gas; yet, Houlahan gives us 87,000 more IRS agents, who will harass small businesses and families. She won’t help us; so, I’m running to fix this mess,” he said.

But Democrat National Committee Chair Jaime Harrison said, “President Biden and Democrats have delivered – and today, the American people won and the special interests lost. Today, President Biden signed the Inflation Reduction Act into law, taking the action the American people are looking for to lower the costs of prescription drugs, energy, and health care. It will also reduce the deficit — helping fight inflation. On top of that, this bill will take aggressive action to fight the climate crisis that will create jobs and increase our energy security.”

Congressman Brian Fitzpatrick (R-Bucks) said on Facebook before the bill passing the House: “The reconciliation bill coming to the House floor tomorrow adds $80 billion to the Internal Revenue Service – nearly six times the agency’s current annual budget – and adds 87,000 new IRS enforcement personnel to pursue taxpayers, including the middle class.

“Wouldn’t we be better off hiring 87,000 new school resource officers and police officers to keep our schools and our communities safe?” Fitzpatrick asked.

American Petroleum Institute (API) President and CEO Mike Sommers said, “While the Inflation Reduction Act takes important steps toward new oil and gas leasing and investments in carbon capture and storage, it falls well short of addressing America’s long-term energy needs and further discourages needed investment in oil and gas. API shares the goal of addressing climate change, as evidenced in the policies we support and in the actions that our industry is taking every day. However, the considerable tax increases are simply the wrong policies at the wrong time.

“From a new corporate minimum tax to an $11.7 billion tax on crude oil and petroleum products to a new natural gas tax, this legislation imposes additional costs on American families and businesses at a time when policymakers should be looking for solutions to provide relief.

“The bill also fails to address permitting reform, which is essential to effectively delivering affordable, reliable energy to consumers in a growing economy,” said Sommers.

“Without a comprehensive plan for critical investment in American oil and natural gas and associated infrastructure, which provide nearly 70 percent of our country’s energy needs, the American people will continue to bear the brunt of short-sighted policies in Washington,” he said.

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The state’s treasurer and tax experts are worried that a new Democrat-backed deal might be Uncle Sam’s way of weaseling into the wallets of more Pennsylvanians after lawmakers passed a massive reconciliation bill that would boost the Internal Revenue Service (IRS) budget by $80 billion over the next decade.

The Senate passed the bill along party lines with Vice President Kamala Harris breaking the tie, moving it a step closer to a House vote. All of the Democrats in Pennsylvania’s delegation, including Reps. Chrissy Houlahan, Mary Gay Scanlon, and Susan Wild are expected to vote for the $739 billion spending deal.

If signed into law by President Joe Biden, it would allocate more than half of the new IRS funding, $45.6 billion, toward beefing up enforcement by hiring about 87,000 new agents, roughly doubling the size of the tax agency.

Critics complained only a fraction of the new investment would go toward processing return backlogs and enhancing customer services at an agency that is notoriously difficult to reach.

“Giving the Internal Revenue Service a massive $80 billion increase should send shivers down the spines of small business owners and the American middle-class,” Republican State Treasurer Stacy Garrity told DVJournal. “Everyone should pay the taxes they owe, but this is a startling overreach by the federal government. Small businesses are the heart of our economy, and as we continue to recover from the pandemic and face the effects of super-charged inflation, hitting them with teams of IRS auditors is absolutely the wrong thing to do.”

The Congressional Budget Office estimates the investment is projected to haul in $203.7 billion in revenue from 2022 to 2031.

Tax attorneys echoed the state treasurer’s concerns, fearing everyday taxpayers would bear the brunt of increased enforcement efforts rather than large corporations and wealthy Americans.

They pointed out training new agents takes between six months and a year before they would be ready to receive low-level enforcement cases likely worth thousands — rather than millions — of dollars.

“This is horrible. This is the worst type of legislation, the worst spending bill yet,” tax lawyer Richard Booker said. “The Democrats have outdone themselves.”

IRS Commissioner Charles Rettig, looking to assuage GOP concerns, wrote to lawmakers that the cash infusion would “absolutely not [be] about increasing audit scrutiny on small businesses or middle-income Americans.”

But critics said it was hard to take Rettig at his word and accused Democrats of using the bill as a “revenue generator” to give Americans a false sense that they are interested in addressing the issue of inflation ahead of the midterm elections.

“I think he’s lying,” Booker said. “He knows they wouldn’t have asked for it unless they knew what they’re going to do with it.”

For example, the IRS was caught targeting conservatives during the lead-up to the 2012 presidential election. The Obama IRS official who admitted the agency’s misbehavior, Lois Lerner, was allowed to retire with a full pension and the agency later destroyed materials related to the scandal that were under subpoena.

Also last year, the leftwing news site Pro Publica reported details from what it described as a “trove” of private tax returns it had obtained of some of America’s wealthiest citizens—15 years worth. Leaking those private, personal documents is a felony, yet tens of thousands of pages were delivered to the liberal media.

The IRS said in its 2021 annual report it identified about $2.2 billion in tax fraud and initiated more than 1,300 investigations into allegations of tax-related crimes, recommending 850 of those cases for criminal prosecution.

Those numbers are a drop in the bucket, experts said, as IRS audits plunged by 44 percent between fiscal years 2015 and 2019, with the biggest declines among the wealthy, CNBC reported, citing a 2021 report from the Treasury Inspector General for Tax Administration. Audit rates for Americans making $5 million or more dropped to about 2 percent in 2019, down from 16 percent in 2010, the outlet reported.

In Pennsylvania, the number of state-led audits and tax-related prosecutions was even lower between fiscal years 2017 and 2022. The state Department of Revenue reported 10,651 field audits for that time frame and only 68 prosecutions for the same period.

State officials brought no tax crime cases against anyone in 2020 partly because of widespread government shutdowns caused by the COVID-19 pandemic and only seven cases last year, a department spokesman said,

Gregory M. McCauley, who runs his own tax firm in Chadds Ford, said the IRS historically has targeted tax protestors, along with individuals and companies that will make “newspaper splashes.”

He mentioned the case of the Ocean City Boardwalk pizza chain, Manco & Manco as an example, saying his office received calls from other frightened pizza-shop owners after the feds indicted Charles Bangle for tax evasion.

Bangle was sentenced to 15 months in prison in 2017 after prosecutors failed to report more than $263,000 in income and avoided paying more than $91,00 in taxes.

“They go after big numbers,” McCauley said. “After that case, we got calls from 10 or 15 pizza places who said, ‘We need to talk.’ It’s done for the deterrent effect. They’re looking for a poster child, someone who is going to cause people to say, ‘I need to change my ways.’”

Veteran GOP communications professional Patrick Hynes tweeted, “Replace ‘FBI’ with ‘IRS’ and replace ‘Trump’ with ‘Trump voters’ and you get the gist of the reconciliation bill and those 87,000 new enforcement agents.”

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All 50 Democratic senators voted in lockstep to raise taxes in a recession, increase spending and corporate welfare during runaway inflation, and take $80 billion from American taxpayers to hire 87,000 more IRS agents tasked with squeezing small-business men and women.

More IRS agents — the IRS itself tells us — will allow for 50 percent more audits of small businesses. Why? The IRS acknowledges it picks up the phone only between 10 percent and 20 percent of the time when you call. But the Inflation Reduction Act will swell the number of IRS auditors. In fact, the legislation shovels 14 times more money for “enforcement” — audits — than it does for “taxpayer services” — such as answering the phone.

The IRS acknowledged that 53 percent of its employees never set foot in an office. They “work” from home. Not answering your phone calls. The other 47 percent of IRS staff? How often do they come to work? The IRS chief told Congress that most of the remainder work in a “blended capacity” where they go into the office occasionally.

By voting to supersize the IRS, Democrats are directly filling their own campaign war chests. You see, the IRS union is a major funder of the Democratic Party.

In fact, 100 percent of the union’s PAC donations go to Democratic Party committees. The IRS union is conveniently “investing” in Senate Democrats in 2022 battleground election contests. In addition to the $30,000 donation to the Democratic Senatorial Campaign Committee, the union gave $10,000 to Sen. Maggie Hassan of New Hampshire and $5,000 to Raphael Warnock of Georgia. It gave much to the very senators who just voted for this bill.

More IRS agents, more union dues and more money for Democratic politicians.

Why raise taxes now? Even Barack Obama knows it is a bad idea to raise taxes in a recession. He said: “The last thing you want to do is raise taxes in a recession.”

Joe Manchin, D-W.Va., was supposed to be the “moderate” that would stop the reckless tax and spending spree. Back in 2010 when he was asking West Virginians to send him to Washington, he said, “I don’t think during a time of recession you mess with any of the taxes, or increase any taxes.”

Manchin looked into the camera and said, “I can’t look the people of West Virginia in the eye and ask them to pay a penny more until I know we’re running this government efficiently.”

Energy prices are far above where they were when Joe Biden was sworn in due to his anti-energy policies. Now Democrats are advancing this bill with three different taxes that will increase energy costs. It raises taxes on oil, natural gas production and coal. These taxes will hit Americans every time they fill their gas tanks or pay their utility bills.

Biden and the Democrats named their legislation “The Inflation Reduction Act of 2022.” Why? Only a year ago, Biden told us there was no inflation. It was transitory. It would be over by (last) December. It was caused by Vladimir Putin. Or greedy business people. Why did everyone wait to get greedy until the Democrats won the House, Senate and presidency?

Or might it be the spend and spend-and-inflate policies Biden signed into law?

By the way, even Bernie Sanders acknowledged the Democratic bill — “the so-called Inflation Reduction Act” (his words) — will have a “minimal impact” on inflation.

Of the $330 billion in new taxes put on businesses, we know that historically 70 percent of the corporate income tax is paid by workers in lower wages and employment. And 30 percent is paid by consumers paying higher prices to cover the cost of those taxes.

Taxes are a cost of any business. American businesses pay the wages of workers, the cost of raw materials, and the cost of regulations and taxes.

America wants to compete on lower taxes and regulations: not lower wages.

And what will all these tax dollars pay for? Well, they are spending billions for “environmental justice,” which includes paying people to walk around in cities and identify “gaps in tree canopy coverage.”

That is a lot of walking around money for somebody. One could, for free, look at Google photos of any American city and find how many trees there are. For free.

The Democratic spending bill also provides billions for well-to-do Americans to buy expensive $80,000 electric vehicles. There are billions in more subsidies for Obamacare even for those making $300,000 per year. Obamacare is so good you have to subsidize people to use it.

The bill raises taxes on America’s manufacturing base. Raises taxes on energy. More taxes on businesses will reduce the value of your life savings in an IRA or 401(k) or pension. More money for the IRS. Lots of cash to be handed out in pork barrel spending.

Isn’t that how we got into this mess?

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Philadelphians and suburbanites are getting a taste of tax relief after Philadelphia passed a $5.8 billion spending plan last week that went into effect July 1.

The deal, hailed by Councilman Allan Domb as “truly monumental,” is about $500 million more than last year’s spending plan, The Philadelphia Inquirer reported.

It includes $30 million in additional allocations for the police department as part of Mayor Jim Kenney’s push to get the city’s record crime surge under control.”

The budget also contains modest tax relief for nearly 1.6 million city residents and thousands of others who commute to Philadelphia for work.

Lawmakers cut city wage and business taxes by small margins. The wage tax, a controversial issue among residents and commuters alike, dropped from 3.83 percent to 3.79 percent for city residents and from 3.448 percent to 3.44 percent for people working in Philadelphia but living outside city limits, officials confirmed.

The business income and receipts tax was also lowered modestly, from 6.2 percent to 5.99 percent, which Domb said is the first time since 1988 that figure is under 6 percent.

Domb, who pushed forward a bill last year that would have reduced the city wage tax by 2 percent over 15 years, played a key role in negotiations that led to the reductions. He said the city must consider the interests of commuters who make up about 40 percent of the city’s working base.

“The government is recognizing how important suburbanites are to the economy of Philadelphia. Suburbs don’t exist without the ‘urb,’” Domb told DVJournal. “We have to be strong so the suburbs are strong. When we’re strong, the suburbs are strong. And when the suburbs are strong, it helps the city.”

The wage tax reduction means residents making between $50,000 to $100,000 a year will see between roughly $25 to $50 more in take-home pay this year, according to Axios and city officials.

Savings for non-residents amounts to even less, at about $4 annually for those making $50,000.

The wage tax is the city’s biggest revenue generator, at about $2 billion for the last fiscal year, officials said. About $700 million of that amount comes from people like Daniel Ceisler, an attorney at Saltz, Mongeluzzi & Bendesky in Philadelphia’s downtown district who commutes from Bristol Township.

Ceisler is one of the few people who doesn’t really gripe about the city wage tax, which reduces his paychecks by about $100.

Commuters effectively are being double-billed by the city and their own municipalities, Ceisler said. There are also people who live in the city but work in places like New York, with its own separate wage tax, meaning those people shell out for both.

Philadelphia’s website lays out scenarios when nonresidents are exempt from paying the wage tax if employers require them to “perform a job” outside of Philadelphia.

Those living outside the city but voluntarily working from home are not immune from the tax.

However insignificant to his bottom line, Ceisler said the reduction was “better than nothing,” especially if it makes Philadelphia safer.

“I don’t want anyone to think that I’m the only one in the world who loves paying taxes, but the city needs it now more than ever,” Ceisler said. “I see a city that’s struggling in a lot of ways.”

Like many who live or work in the city, he said a historic crime wave that hit the city during the pandemic has made him and others feel less at ease walking the streets.

“The shift you’re seeing (is) more crime and more brazen crime, particularly in areas where you didn’t use to see it,” Ceisler said. “There’s no part of the city that’s immune to violent crime.”

Under this year’s spending plan, the police department saw its annual budget boosted by about $30 million, to about $800 million, a figure the Inquirer reported is the most of any city agency.

The increase comes two years after the police budget was frozen following widespread civil unrest and protests that broke out across the country over police brutality following the murder of George Floyd in Minneapolis. Since then, the city has invested more than $150 million into anti-violence programs.

Kenney proposed about $23 million more for police to cover union-based salary increases and upgrades for office technology. The city council added another $6.2  million on top of that, according to The Inquirer.

About $5 million was set aside for the city’s forensic lab and $250,000 for recruitment amid a nationwide shortage of police recruits.

The money is needed as not every one of the city’s 6,300 sworn officers is equipped with a cell phone, a potential public safety hazard, Domb said.

“That’s pretty basic,” said Domb, who is exploring running for mayor with the Democratic primary less than a year away. “No one will argue that the No. 1 issue in the city is public safety. I am heartbroken over what’s going on. I know we can do better.”

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On this edition of the Delaware Valley Journal podcast, David Callahan, president of the Marcellus Shale Coalition talks about the benefits Pennsylvania and America get from the abundant, clean natural gas found in the Keystone State. DVJournal News Editor Linda Stein asked about PA’s different system of taxing natural gas compared to other states, and the revenue benefits from the energy sector for local governments.

And if you’re looking for a good-paying job in Pennsylvania — some with a six-figure salary — David Callahan knows who you should call!

Hosted by Michael Graham.

The arrival of COVID-19 brought to light several underlying issues in America. But perhaps the issue that has been most exposed is our overreliance on products made outside of our borders.

International disruptions such as pandemics, natural disasters, and political upheaval significantly impact our nation’s supply chain of goods. The result of that disruption is stunted economic growth and increased prices for American consumers.

During my travels around Pennsylvania, it has been hard to ignore the abandoned factories and hallowed out towns throughout our commonwealth. Once vibrant communities were replaced with vacant lots and blight. Parents had to say goodbye to their children as they moved far away to find any kind of stable employment. Drugs usage and welfare replaced prosperity and family building.

It wasn’t always this way. Pennsylvania towns used to be a “keystone” to America’s ability to make products desired around the world. Our iron and steel once built the Golden Gate Bridge, the Hoover Dam, and the Empire State Building.

In 1999, manufacturing jobs accounted for 865,000 jobs in Pennsylvania. By 2019, that figure shrunk to 575,000.

The transition of jobs from the manufacturing sector to the service sector had a disproportional effect on men without a college degree in our commonwealth. Their lack of a degree and unique specific skillset made it difficult to find other good paying and fulfilling jobs.

Fatal foreign policy mistakes by the federal government and the failure of Pennsylvania’s state leaders to replicate pro-business polices implemented in other states were significant factors in the downfall of our manufacturing sector.

Many economic analysists point to the early 2000s as a consequential period that accelerated the decline.

Twenty years ago, the World Trade Organization made the fateful decision to admit the People’s Republic of China as member nation. The same WTO that oversees the global system of trade rules and regulations. China’s entry also granted them permanent “most favored nation” status in trade with the United States. Prior to its WTO entry, that status had to be approved on an annual basis by the U.S. Congress.

The monumental economic and political effects emanating from China’s entry into the WTO continue to reverberate today.

It opened the floodgates for foreign trade and investment into China’s markets. Most significantly, it led to China’s domination in the manufactured goods export market. China’s share of global manufacturing exports went from 4 percent in 2000 to 15 percent in 2020.

China’s advantage of an overabundant labor force, lax labor laws, and large government subsidies give them an unfair advantage when it comes to attracting companies to manufacture goods on their shores.

America’s trade deficit with China grew by over 400 percent from 2001-2018. According to a study by the Economic Policy Institute, this amounted to the loss of 3.7 million overall American jobs from 2001-2018.

While international agreements, automation, and changes in technology were factors in the decline of manufacturing in Pennsylvania, our state leaders certainly didn’t do any favors to keep the jobs we had or attract new investment.

While the manufacturing sector largely contracted in northeast states like Pennsylvania, other states adapted their business policies and found ways to attract new investment opportunities.

Ball State University’s Center for Business and Economic research conducts a comprehensive nationwide manufacturing industry scorecard every year dating back to 2009. The scorecard examines factors such as tax climate, regulatory environment, and human capital.

Every year, Pennsylvania has received a grade of “C” or worse when it comes to manufacturing health. Conversely, states like Michigan, Kentucky, and South Carolina receive an “A”.

Michigan, Kentucky, and South Carolina all saw an annual average manufacturing growth rate of 2 percent or more since 2009, according to the U.S Bureau of Economic Analysis. Meanwhile, Pennsylvania’s growth was anemic at less than 1 percent.

How do we make Pennsylvania more attractive to prospective manufacturers? Let’s start with much needed regulatory reform.

Pennsylvania was rated at No. 35 in the nation for regulatory environment, according to Forbes Best Business Ratings.  With over 153,000 regulations on the books, we have one of the most burdensome regulatory codes in the country. It would take an individual about 713 hours—or just under 18 weeks—to read the entire Pennsylvania Code.

Review, modification, and rescindment of onerous regulations can be the genesis of a manufacturing resurgence. There is a cost to every regulation. That cost is exacerbated when the regulation is no longer needed. Regulations need to be reviewed on a regular basis to determine if they continue to be needed, require modification, or require termination. By creating a consistent review schedule, the General Assembly can determine whether a regulation should be continued, modified, or terminated.

Additionally, creating a “2 for 1” model (removing 2 regulations for any new regulation) is something we should adopt here in Pennsylvania.

We also must improve our permitting process. Members of the General Assembly often hear from prospective employers who ask, why does it take so long to get a permit? Where does my permit stand? What is the holdup?

We saw this issue in practice when U.S. Steel decided to pull out of a $1.5 billion investment in the Mon Valley Works in Braddock. After delays in getting approvals and permits, US Steel called it off and the region lost out an opportunity to gain hundreds of good paying, blue-collar jobs.

Passing legislation to create a tracking system for permit applications and permit and third-party review of permit decision delays will go a long way to address concerns of business owners and bring greater transparency to the permitting review process.

We need to make our state a more attractive tax climate.  Our current Corporate Net Income Tax is the second largest in the country at 9.99 percent. For comparison, Arkansas’ corporate tax rate of 5 percent recently helped them land the most advanced steelmaking facility in North America that is expected to produce 3 million tons of advanced steel per year.

Reducing the corporate tax burden by at least 2 percent here will help us compete with other states to attract prospective manufacturers. Thankfully, it appears that this idea is starting to gain bipartisan support.

But I also believe that a corporate tax reduction should be contingent on employers agreeing to retain or attract a certain number of jobs in the commonwealth. We must ensure these companies are doing their part to invest in our people.

Will Pennsylvania’s manufacturing employment and output ever return to its heyday? Not likely.

But there are steps that our commonwealth can take now that will instantly make us a more attractive location for manufacturers to grow and invest. Pennsylvania manufacturing sector once powered America into the Industrial Revolution and helped her become the “Arsenal of Democracy” through two World Wars.

We can lead the way once again in reshoring jobs to America and stabilizing our supply chains in the long run.

State Rep. Tracy Pennycuick is running for the state Senate seat now held by Sen. Bob Mensch (R-Bucks/Berks/Montgomery), who is retiring.

Pennycuick (R-Harleysville) says she loves her current job serving her constituents, but since Mensch is retiring, she decided to run for the Senate “so there will be a continuity of services.”

Pennycuick wants to “maintain the integrity of the area, the values of our area. I really love the job.”

If she is elected to the Senate, Pennycuick says she would work to change Pennsylvania’s onerous tax laws that are causing senior citizens to lose their homes and driving businesses to other states.

Pennycuick grew up near Boston. An Army combat veteran, she initially enlisted as a medic. She earned a degree in business and a commission in the U.S. Army. She served as a Blackhawk pilot, including three combat tours in Iraq, Afghanistan, and Desert Storm where she was awarded the bronze star.

Pennycuick retired as a lieutenant colonel after 26 years of service. She was a platoon leader, operations officer, company commander, aviation group safety officer, brigade human resources officer, executive officer, Department of Defense efficiency expert, and foreign liaison to the UK Ministry of Defence.

Pennycuick and her husband, Rick, who also served in the armed forces, settled in Harleysville when he was in command of the Defense Contract Management Agency (DCMA) Philadelphia. The couple has four grown children, three of whom are serving in the military, and two grandchildren.

“I’m excited by the opportunity to expand my service to our communities in the state Senate,” said Pennycuick. “As state representative, I’ve focused on providing our front-line heroes, families, seniors, workers, and small businesses with the support they need through the pandemic while also pushing forward important legislation that protects some of our most vulnerable populations and vital government reform.

“Additionally, we’ve made sure our schools have the resources they need to provide excellent education, so our students succeed despite the adversity presented by the pandemic.  The outpour of support thus far has been humbling, and I look forward to campaigning for every vote this year,” she said.

Mensch, meanwhile, has endorsed Pennycuick.

“I’ve worked with Tracy in Harrisburg and her district over the past couple years, and when I decided to retire, I could think of no one who would work harder for the residents of the 24th state Senate District.  Clearly, Tracy is a fighter. Her years of service in the U.S. Army and work in the private sector have prepared her for this job which is why she has been so successful in the state House. I’m happy to lend my support to her for state Senate,” stated Mensch.

If she is elected, Pennycuick says she wants to make Pennsylvania “more attractive for businesses to come and do business.”

“We have a declining population,” said Pennycuick, noting the state has lost congressional seats. By making the state more attractive for business and manufacturers, it will be more likely that “our kids stay in the area,” she said.

She would also like to “fix the school tax and real estate taxes,” so that senior citizens can afford to stay in their homes.

“That’s a big issue,” she said, and something homeowners always complain to her about.

As for reducing school taxes, Pennycuick would like to have smaller districts join larger districts so there is “an economy of scale” and districts would not be paying so many administrators. There are currently 500 school districts in Pennsylvania, she noted.

Cuts to real estate taxes could be paid for through increasing the sales tax and the personal income tax, she said. But she would like the money to stay local, rather than going to the state.

“We can do it better and have great schools,” she said. “We owe it to our seniors.”

“We’ve got to think outside of the box and be more fiscally responsive,” said Pennycuick, who favors educational choice. “We need to give our kids an opportunity to be successful. No parent ever wakes up and says, ‘I want my kid to go to a failing school.”

She would also like to see more transparency in state government as well.

Pennycuick, who said she prioritizes constituent services, was elected in the House in 2020. She has supported first responders, workers, and victims of violence. She helped pass a budget that “fully funded” schools and for reforms in state lobbying practices. She also practices bipartisanship and tries to have a Democrat as a co-sponsor of her bills, when possible.

“I’m a firm believer in fixing problems,” said Pennycuick. “We have to work together.”

After the military, Pennycuick started a small business in the aviation services industry and employed 17 people. She learned firsthand the difficulties businesses face dealing with government red-tape and regulations. That was why she has worked to support small businesses in the face of the pandemic as they fight to survive and continue to meet payroll each week.

Pennycuick served as the director of Veterans Affairs for Montgomery County for three years and continues to serve on several veteran non-profit boards.

When she is not working, Pennycuick enjoys traveling, snowshoeing, refurbishing old furniture, and rehabbing houses. Most recently, she went to Alaska, where one of her daughters is stationed and “petted a moose.”

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The first year of the Joe Biden administration is drawing to a close. What happened in the last 12 months in American politics and policy?

Biden was elected promising to end COVID and unite the country. That didn’t happen.

Now in response to the Omicron variant, Biden and Democrat governors are shutting down schools and businesses once again.

Government spending soared, inflation went up and Biden’s popularity went down.

Pipelines were killed and the cost of energy jumped 33 percent.

Biden turned his back on American farmers who need America to establish a trade agreement with Britain now freed from the European Union, and Taiwan and all our Asian allies concerned about China. And our most innovative industries have watched Biden allow other nations to steal our intellectual property and attack our most successful businesses with targeted taxes and regulations.

Biden stopped the final construction of the wall at America’s southern border, left the gates open and hundreds of thousands have entered the U.S. illegally.

The Democrat running for governor of Virginia said parents had no business meddling in the education of their children in public schools and in November the Virginia vote swung 10 points to the Republicans and elected the first Republican governor since 2009 as well as a Republican House of Delegates.

Biden the “moderate” became Biden the advocate for a “Build Back Better” tax and spending bill that would increase spending $5 trillion and the debt by $3 trillion if implemented over the full 10 year period.

This bill if passed would have imposed the highest marginal tax rates on income in the developed world. Higher than China. Higher than Europe or Russia. It would have imposed a capital gains tax higher than anything since Jimmy Carter’s malaise.

The bill would also impose tax increases that will make heating your home more expensive. And the bill’s corporate “minimum tax” would increase utility bills across the country as the taxes are passed directly through to consumers.

Biden’s spending bill hands out cash to trial lawyers, a major funder of the modern Democrat party. And cash tax credits to members of the press. No wonder the establishment media have endorsed this bill. They have a big interest—self-interest—in the legislation. Biden wonders why taxpayers find this offensive.

Biden joined Bernie Sanders and “the Squad” in demanding trillions in new spending and trillions more in higher taxes. Biden proposed adding $80 billion dollars to the IRS to hire 87,000 more auditors. The IRS said they would increase audits of small businesses and expect to extract tens of billions of dollars.

Biden quickly pulled U.S. troops out of Afghanistan against the advice of the military and without consulting allies. Biden first closed down the major U.S. airbase which left the capital city of Kabul full of Americans and our allies struggling to get out. Some died in terrorist bombings.

Russia saw this weakness and moved troops to the border of Ukraine. China threatens Taiwan and continues its oppression of the Uyghurs.

The 50 states tell a different story. Twenty-three states are controlled by a Republican governor and state legislature. Only 14 are run wholly by Democrats. Republicans have full control of the legislature in 30 states.

Fourteen Republican states reduced the state income tax in 2021. Ten Republican states have announced the goal of abolishing their state income tax over the next decade. Already eight states have no state income tax. Florida, Texas, and Tennessee have shown how it can be done.

There is a stalemate now in the U.S. Senate. Democrats need 50 votes to pass their tax and spend legislation. Vice President Kamala Harris would then cast the deciding vote for the legislation. But longtime Democrat Sen. Joe Manchin has told the rest of the Democrats he will not vote for legislation that adds to the debt or costs more than $1.7 trillion over 10 years or gives welfare benefits to those not even trying to look for work.

Will some tax and spend legislation pass? Maybe, but it will be smaller and less expensive than Biden is demanding.

Now the question is how Americans will react to the year 2021 in 2022.

Both the House and Senate are up for election. Voters can send Washington a strong message. Do they want higher spending and taxes or less spending and lower taxes? Everyone will be heard on November 8, 2022, and that will decide what the next decade will look like.

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