President Obama's tax plan would allow portions of previous tax cuts to expire, resulting in tax hikes beginning in 2011 for those earning over $250,000. This would significantly impact the economy in Pennsylvania by causing an average annual loss of 28,731 jobs through 2020, reducing household income by $11,720 on average, and increasing total individual income taxes by $20.4 billion.

1. THE EFFECTS OF THE OBAMA TAX PLAN
Pennsylvania
President Obama’s tax plan would allow portions TOTAL EMPLOYMENT
of the 2001 and 2003 tax cuts to expire, resulting in Annual Change in Jobs
steep tax hikes beginning in January 2011 for small
2011 2015 2020
businesses and those earning $250,000 or more. 0
The tax hikes would significantly affect the economy
–4,000
in Pennsylvania, most notably in the number of jobs
and change in personal income. –8,000
–12,000
Among the results, from 2011 to 2020, the state
–16,000
of Pennsylvania would:
• Lose, on average, 28,731 jobs annually. –20,000
• Lose, per household, $11,720 in total
–24,000
disposable personal income.
• See total individual income taxes increase by –28,000
$20,444 million. –32,000
–36,000
Source: Heritage Foundation calculations based on the IHS Global
Insight U.S. macroeconomic model, and data from the U.S. Census –40,000
Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
–36,292
REAL DISPOSABLE INCOME TOTAL INDIVIDUAL INCOME TAXES
Annual Change per Household Annual Change in Millions of Dollars
$2,536.3
2011 2015 2020
$0 $2,700
–$200 $2,400
$2,100
–$400
$1,800
–$600
$1,500
–$800
$1,200
–$1,000
$900
–$1,200
$600
–$1,400 $300
–$1,600 $0
2011 2015 2020
–$1,483.43
Chart PA • Obama Tax Plan by State heritage.org

2. THE EFFECTS OF THE OBAMA TAX PLAN
Change in Employment in Pennsylvania
Average Annual Change in Total
Employment, 2011 to 2020, by
Congressional District
Jobs Lost: 800–1,399
Jobs Lost: 1,400–1,599
Jobs Lost: 1,600–1,799
Jobs Lost: 1,800–2,320
10
11
3 5
15
8
17
13
6 2
4
7
16
9
14 19
18 12
State: 28,731 jobs lost annually on average
Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S.
Department of Labor, Bureau of Labor Statistics.
Map PA • Obama Tax Plan by State heritage.org