COSTA’S BUSINESS TAX HIKE A JOB-KILLER FOR PENNSYLVANIA

After saying jobs are top priority, Senator then proposes making them more expensive to create

HARRISBURG, PA (May 20, 2013) -- Senate Minority Leader Jay Costa (D-Allegheny) today announced his plan to damage Pennsylvania’s economy by raising taxes on job-creators.  In remarks to the Pennsylvania Press Club, Costa proposed increasing state government spending while raising the Capital Stock and Franchise Tax, a duplicative tax on business assets that will otherwise expire at year’s end.  In addition to undermining the credibility of the Commonwealth with business investors by interrupting the phase-out of the tax, Costa also welcomes increasing the tax rate in order to fund bigger government.

“Further delaying the overdue elimination of the Capital Stock and Franchise tax is an absolute non-starter,” said David N. Taylor, Executive Director of the Pennsylvania Manufacturers’ Association.  “The CSFT is a stupid, job-killing tax that businesses pay on their assets, regardless of their earnings.  It is paid on top of Pennsylvania’s highest-in-the-nation Corporate Income Tax, whereas most states have EITHER a business income tax OR a business assets tax – not BOTH.  Under Gov. Tom Ridge’s original phase-out plan, the Commonwealth would have ceased collecting the CSFT on January 1, 2009.  Laying hands on the CSFT phase-out would be an act of extreme bad faith by state government and would send an unmistakable signal to employers and investors that Pennsylvania is not a reliable place to do business.”

About PMA

Founded in 1909 by Bucks County industrialist Joseph Grundy, the Pennsylvania Manufacturers’ Association is a statewide, Harrisburg-based trade organization representing the interests of Pennsylvania’s manufacturing sector in the state’s public policy process.  To learn more about PMA and its work, please visit www.pamanufacturers.org