The Commonwealth Foundation

August 31,2001

David Tuerck, Ph.D.
Executive Director
Beacon Hill Institute
8 Ashburton Place
Boston, Massachusetts 02108-2770

Dear David:

I write to thank you and your staff for the outstanding work you have done in providing us with the STAMP tax model for Pennsylvania. It has been an invaluable tool for us and, in just the past few months, we have employed it successfully in a key fight to prevent a tax increase.

As you know, some legislators in Pennsylvania are fighting mightily to include our state in the group seeking to expand sales taxes to all Internet and other remote purchases. While we were readily able to show the static effect that the proposal would have on taxpayers and consumers in Pennsylvania, we looked to the STAMP model to help us show the dynamic effect of this tax increase on jobs and our economy. With your help, we were able to show legislators and other policy-makers that Pennsylvania would forfeit more than 90,000 jobs going forward if the Internet sales tax plan became reality.

You will be quite pleased to know that the tax advocates, at their request, were provided with our study and the STAMP users' manual the Beacon Hill produced. They, I assume, thought that they would be able to tear the model apart and show the state the error of our ways. They have said not one substantive word critical of the model, which tells me that your work has withstood the most hostile and biased scrutiny. This is a strong testament to the thoroughness and the care of Beacon Hill's product. We will be using the STAMP model in the weeks ahead to show Pennsylvania policy makers how a dramatic reduction in business taxes can boost our state's anemic job-creation record, and we have had interest from key leaders from around the state in how the model can help them shape their own policy proposals. All in all, adding the STAMP model to The Commonwealth Foundation's research tools has been an important and extremely helpful development for us this year. We look forward to even greater impact in the months ahead.

Please count me among your most grateful admirers.

Very truly yours,

Sean Duffy

*Please note that is a fascimile of the original correspondence endorsing BHI's work. It has been formatted for the web. Original copies of correspondence are available upon request.