By Scott Wagner
I have been a private sector business owner for over 35 years– over the span of my business career I have learned many lessons.
Lesson # 1 – The costs for your products or services have to be less than the pricing for your products or services to make a profit.
No profit means you are out of business – thousands of businesses fail every day in America because the owners did not understand the pricing – cost – profit rule.
There is also another very large dynamic in the business world – competition!
Competition is a factor that does not allow a business to just raise prices whenever it feels like it.
Many business owners fail several times before they succeed – success does not happen overnight – success takes hard work, skill and perseverance.
At some point in a small business owners career, he or shee will have spend a large amount of time lying awake at night staring at the ceiling wondering how they are going to solve an issue in their business, obtain financing or just outright survive a recession or fierce competition.
– and you really don’t have to spend much time keeping your costs under control – are you interested?
There is one business that is a monopoly out there and it is called “The State of Pennsylvania”.
The current Governor of Pennsylvania has sent a notice to all Pennsylvanians that he intends to raise prices.
The Governor wants to raise prices on a lot of products in PA and he doesn’t care about controlling or reducing costs.
In April, an article from Watchdog.org reported that “Philly ghost teachers made more than $1.7 Million Dollars last year”. Click here for the full article.
Last Sunday Philly.com reported that in Philadelphia “No-bid schools contract is costing millions”. Click here for the full article.
In July of 2014 an article was published “Welfare fraud in Pennsylvania”. Click here for the full article.
The welfare fraud article states:
According to the Pennsylvania Department of Welfare, 2013 welfare expenditures were $28 Billion Dollars – 44% of the state budget – and are projected to rise to $32 Billion Dollars in 2015.
Welfare costs will grow for the foreseeable future in both dollars and as a percent of total expenditures. This trend must be reversed.
Former Auditor General, Jack Wagner, estimated that welfare fraud represents 10-15% of total state expenditures, or $2.8 billion to $4.2 billion of stolen taxpayer funds.
$400 million to $675 million annually could be attributed to food stamps and cash assistance program fraud alone.
While there has been some progress over the last three years in reducing welfare fraud, more action is necessary.
On-going welfare fraud, ghost teachers, no bid school contracts in Philadelphia.
So where is our Governor ??
Governor Wolf is running around PA telling everyone that we have to raise revenue by taxing more products and services and by increasing current taxes – “Earth To Governor Wolf – how about resolving the many out of control cost and fraud issues in PA first before you raise our taxes”.
Let me be clear again with the message I have repeated hundreds of times – “Harrisburg does not have a revenue problem – it has a spending problem”.
In the beginning of my email that I talked about competition – Pennsylvania has competition – and a lot of it – South Carolina, North Carolina, Tennessee, West Virginia and Kentucky to name a few.
They have low taxes – lots of undeveloped land for large businesses to locate there and public sector unions do not control their state capitols like they do here in Pennsylvania.
To all Pennsylvania taxpayers who understand my message today, and agree that Pennsylvania must get the out of control costs and fraud under control – I ask that you reach out to the PA State Senator and House member who represents you and tell them to stand tall against Governor Wolf and his budget agenda.
I am fed up and I have had enough of “Tax and Spend”.
Are you fed up also?
Sen. Wagner represents the 28th District in the Pennsylvania Senate.
Pennsylvania Monopoly Government