EMAIL DETAILS

<HTML><BODY leftmargin="0" topmargin="0" rightmargin="0" bottommargin="0" marginwidth="0" marginheight="0">
<BR><center><font face="Verdana, Arial" size="1" style="font-size:10px;"><a href="http://t.lt02.net/q/hXprAtaXHyTd_cgCiv4vLL8nYloUtf0DtVnmcu8EDUV1BZHQgAx8NviVX">View this email with images.</a></font></center><BR><BR>
<style type="text/css">
BODY {
FONT-FAMILY: Verdana, Geneva, sans-serif; COLOR: #000; FONT-SIZE: 12px
}
TD {
FONT-FAMILY: Verdana, Geneva, sans-serif; COLOR: #000; FONT-SIZE: 12px
}
TH {
FONT-FAMILY: Verdana, Geneva, sans-serif; COLOR: #000; FONT-SIZE: 12px
}
BACKGROUND-COLOR: #ffffff; MARGIN: 0px; BACKGROUND-REPEAT: repeat-y; BACKGROUND-POSITION: center 50%
}
</style>
<table align="center" border="0" cellpadding="0" cellspacing="0" width="580">
<tbody>
<tr>
<td align="center" valign="top">
<center>
<table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" height="979" width="580">
<tbody>
<tr>
<td align="center" bgcolor="#ffffff" valign="top" width="580"><img src="http://media.lt02.net/4552/PA-529-Border-Top-02272015.jpg" border="0"><a target="_blank" href="http://t.lt02.net/q/rYkbG1_WotM_EBMM20fYqi4b_j6B1Npd1Is5ZMO7vBCe8Y9G2DyOle2gY"><img src="http://media.lt02.net/4552/Treasury-Notes-Header.jpg" border="0"></a> <img src="http://media.lt02.net/4552/PA-529-Border-Bottom-02272015.jpg" border="0"><br>
<table style="width: 580px;" align="center" border="0" cellpadding="0" cellspacing="0" width="580">
<tbody>
<tr>
<td width="580">
<p style="text-align: center;font-size: 16pt; font-family: Calibri, sans-serif;border-bottom:1px solid #3d505a " align="center">Thoughts on the Causes of Pennsylvania's Structural Deficit</p>
<p><span>Although there has been much talk of late about Pennsylvania’s structural budget deficit, the term can mean different things to different people. Accordingly, it is hoped this issue of <i><a target="_blank" href="http://t.lt02.net/q/Wo4bg1cWVVHL6Lm12OfYNUob5L6B1NpH1Is0ZMO7vB2D8erGIDIOlc2Yo">Treasury Notes</a></i> will at least help to identify the genesis of Pennsylvania’s existing structural deficit. Reductions in existing sources of taxes – without identifying compensating revenues – and changes in tax policies that fail to track changes in Pennsylvania’s economic base can result in growing revenue shortfalls. As the figures in this issue depict, reducing the Capital Stock and Franchise Tax and many businesses filing at personal income tax rates may be responsible for annual tax revenues coming in $1.9 billion lower than they otherwise would be. <br>
<br>
The content in <a target="_blank" href="http://t.lt02.net/q/z5FDuIcGVDtoGLV1hClzMxVT_NfFI-4zI6EucVXjJFDqKVOGi8OXNehx5"><i>Treasury Notes</i></a> is not intended to advocate any particular public policy position or legislative proposal. Rather, it is the intention of <i><a target="_blank" href="http://t.lt02.net/q/j8a_l47GIBHaYWakQ1gJj8Ci32AW4SDW4TFjVZ5f-Wo7ivvG8R95NdQ18">Treasury Notes</a></i> to provide statistical context, through graphical illustrations, for current state fiscal policy discussions and to facilitate a better understanding of the financial condition of the Commonwealth.<br>
<br>
Policy topic suggestions for future <i>Treasury Notes</i> are welcome and should be sent to <a href="mailto:TreasuryNotes@patreasury.gov">TreasuryNotes@patreasury.gov</a>.<br>
</span></p>
<p>Sincerely,<br>
<img src="http://media.lt02.net/4552/Christopher-Craig-Signature-Final.png" border="0"></p>
<p>Christopher Craig<br>
Executive Deputy State Treasurer<br>
Chief Counsel<br>
<br>
<br>
<br>
</p>
</td>
</tr>
</tbody>
</table>
<table align="center" border="0" cellpadding="0" cellspacing="0" height="149" width="580">
<tbody>
<tr>
<td><br>
<table align="center" border="0" cellpadding="0" cellspacing="0" width="580">
<tbody>
<tr>
<td align="center" width="580">
<p align="center"><em><br>
</em><a target="_blank" href="http://t.lt02.net/q/U58lX7CEUOBTygjBVF1WbMY3wkvc7A6C7aJhQCx-Zcfl0wOGji0xFTVF5"><img src="http://media.lt02.net/4552/Treasury-Logo-Green-Center_Rob_McCord.jpg" border="0"></a></p>
</td>
</tr>
</tbody>
</table>
<p> </p>
</td>
</tr>
</tbody>
</table>
<br>
</td>
</tr>
</tbody>
</table>
</center></td>
</tr>
</tbody>
</table>
<BR><BR><center><font face="Verdana, Arial" size="2"><a href="http://t.lt02.net/q/H4WoU-bahnA7l7yMcJrdQULmm5Fi-OqP-g0B1V5_6iVgjX3Bcf95bLcX4">Click Here</a> to be removed from this list</font></center>
<img src="http://t.lt02.net/q/cQDUuQVsgo8vYE8yRGSevm88Jm0KQBcSE2H968Wf3KGnlmSObJgWwyR6Q" alt="" width="20" height="1"></BODY></HTML>