Join a Forum
Take Action
Newsletter
Search
 

                         
 


 

Tell a friend:


 

Home >> Three Major Challenges Facing Pennsylvania >> Structural Costs

Structural Costs

Costs imposed by federal, state and local government are damaging manufacturing more than any foreign competitor.

 

Some of the costly facts:

  • It costs 32 percent more to manufacture in the United States than in the countries of our nine major trade partners.
  • Non-production structural costs for American manufacturers total more than $6 per work hour.

Taxes

  • Many U.S. trading partners have lower corporate tax rates than we do. China’s rate is only 15 percent and the U.S. rate is 40 percent.
  • Pennsylvania’s corporate state income tax is higher than every other state, except for one.

Health-care

  • The United States, by far, has the most expensive health-care system in the world.
  • The price tag for unnecessary and avoidable health-care costs in Pennsylvania is $7.6 billion annually.
  • Today’s employers spend, on average, $7,500 per employee on health insurance premiums. That is $225,000 per year for a company of 30 employees.
  • From 2000-2006, growth in premium costs rose 75.6 percent - four times the rate of inflation.

Tort Litigation

  • Annually, U.S. tort litigation costs are significantly higher than in other countries. The cost in Canada is $9 billion, Germany spends $31 billion and the amount spent in the United States is $275 billion. Regulatory Costs
  • The regulatory burden on American manufacturers is estimated at $162 billion annually. • The U.S. government is now the largest, fastest growing employer with more than 22 million employees who earn an average of $44,250 annually.
  • Federal, state and local government employs more than 765,500 Pennsylvanians. It is the second largest employment group in the state.

Regulatory Costs

  • The regulatory burden on American manufacturers is estimated at $162 billion annually.
  • The U.S. government is now the largest, fastest growing employer with more than 22 million employees who earn an average of $44,250 annually.
  • Federal, state and local government employs more than 765,500 Pennsylvanians. It is the second largest employment group in the state

Energy Costs

  • High energy costs are helping drive manufacturing out of Pennsylvania.

Structural Cost Reforms

 
1. Tax Reform

2. Health-care Reform

3. Legal Reform

4. Regulatory Reform

5. Energy Reform

Home Contact Us  Key Links  About Us  Privacy Policy