PA Manufacturers' Association- Press Releases

Archives- October, 2007:

10/30/07

RETAIN JUSTICE SAYLOR AND ALL JUDGES

by Frederick W. Anton III, President & CEO

Pennsylvania Manufacturers' Association

Next Tuesday (Nov. 6), Pennsylvanians will be voting to select several members of the appellate courts and to decide whether to retain a number of currently-sitting jurists.

Now, some activists who quite rightly focused public outrage over the egregious 2005 pay-raise are trying to extend their time in the limelight by calling for the ouster of all judges seeking retention.

Their argument? Because the state Supreme Court excluded the judicial branch fro m the pay-raise repeal, these activists now claim any judge who did not "repay" the salary increase has betrayed the public trust and is no longer fit to serve. Obviously, this is a hysterical oversimplification and little more than an exercise in grandstanding.

The members of Pennsylvania’s appellate courts are exceptional people who deserve to be considered on their individual merits. An across-the-board “no” vote on retention would be foolhardy and reckless, serving only to give Gov. Ed Rendell the political windfall of appointing his allies to however many judicial vacancies would result. No responsible political commentator has endorsed the “throw-the-bums-out” message, and neither should the voters.

As The Patriot-News of Harrisburg editorialized, "Removing 66 judges in one sweep, presuming that was possible, would be a catasrophe for the court system in this state and discourage good and wise people fro m aspiring to serve or remain as judges."

In discussing this issue, I want to make particular mention of Supreme Court Justice Tom Saylor, who is the highest-ranking jurist standing for retention. As Club for Growth President Pat Toomey said, “Tom Saylor is a thoughtful judge who has shown respect for the Pennsylvania Constitution and concern for the people of our Commonwealth.” The Pittsburgh Post-Gazette lauded Justice Saylor’s “high-quality, well-reasoned opinions” in endorsing his retention, as has the Pittsburgh Tribune-Review.

With the announced retirement of Chief Justice Ralph Cappy, the seven-member Supreme Court of Pennsylvania will have at least three new members next year, which makes keeping the stellar Tom Saylor even more critical.

On Election Day, it will be time for voters to specifically find a judge unqualified on his or her judicial record before voting “no”.

Vote “yes” on retention.

10/29/07

CompetePA brings business tax reform message to state Capitol

Business leaders seek to make Pennsylvania’s taxes competitive to create jobs and prosperity

HARRISBURG, PA, Oct. 29, 2007 -- Members of the CompetePA Coalition were in Harrisburg today to encourage state lawmakers to continue progress on improving the Commonwealth’s business tax climate and fostering long-term economic growth by enacting additional improvements to the state’s business tax structure.

The CompetePA Coalition comprises more than 100 businesses and organizations from across Pennsylvania that want to see Pennsylvania compete successfully for new jobs and investment. The coalition is working to solve the serious business tax competitiveness problems that are contributing to the low rate of job creation.

“The hundreds of thousands of employees from all geographic areas and industries that are represented by the CompetePA Coalition remain unified in their support of broad-based changes to our tax structure,” said Gene Barr, PA Chamber vice president of government and public affairs. “Making these improvements will reap long-term benefits for Pennsylvania’s economy and its citizens.”

The coalition’s 2007 goals include the elimination of the cap on net operating losses (NOL) and moving toward a single sales factor for Corporate Net Income (CNI) tax apportionment. These improvements would build on positive business tax reductions that were included in the 2006-07 state budget. At that time, the NOL was raised from $2 million to $3 million, or 12.5 percent of taxable income, whichever is greater; and the sales factor was increased from 60 percent to 70 percent.

“Pennsylvanians deserve the growth in high-quality jobs and resulting prosperity that would come from a more competitive business climate,” said Kathryn Klaber, executive director of the Pennsylvania Economy League of Southwestern Pennsylvania. “Our young people in particular need better opportunities that will allow them to stay here to work and live.”

The Commonwealth’s restrictive cap on net operating loss carryforwards is particularly detrimental to start-up and cyclical companies that operate in Pennsylvania, while the structural deficiencies in the apportionment formula to the Corporate Net Income tax have long been a hindrance to economic development.

Pennsylvania is one of only two states with a cap on net operating loss carryforwards. At 9.99 percent, the CNI rate remains the second-highest in the nation.

“Eliminating the NOL cap would ensure that new businesses are able to survive and continue to grow, and would level the playing field for cyclical companies that now must pay significantly higher CNI taxes over a multi-year period,” Klaber said.

In addition, calculating the CNI rate based solely on a company’s sales means businesses would no longer be penalized for increasing investments in capital and hiring employees. The adoption of the so-called Single Sales Factor to the CNI apportionment formula represents a “home team” advantage that encourages the investment of new jobs and capital in the Commonwealth.

Building on the momentum on business tax reform, coalition members met individually with state lawmakers, and hosted a panel discussion featuring tax experts from businesses across the Commonwealth, who discussed the current business tax climate and its impact on business growth and job creation.

For more information about CompetePA and what you can do to help Pennsylvania compete successfully for new jobs and investment, visit www.CompetePA.com.

Contact: Shawn Bannon, 412 281-4783, ext. 4525

10/03/07

BUSINESS COMMUNITY UNITED ON ENERGY POLICY

Pro-growth advocates stand together in support of NOL relief instead of deeper debt for PA taxpayers

On behalf of the Pennsylvania Manufacturers’ Association, PMA Executive Director David N. Taylor issued the following statement:

“I want to thank my friend Gene Barr from the Pennsylvania Chamber of Business and Industry for his testimony before the House Environmental Resources and Energy Committee today. Gene very clearly described the priorities and concerns of Pennsylvania’s job-creators during this special session on energy.

“Pennsylvania’s economy depends on energy that is affordable, reliable, and available. Rather than have the state government further distort the energy markets, Pennsylvania’s elected officials should welcome greater private sector investment by fixing our uncompetitive tax laws.

“Pennsylvania could eliminate a major obstacle to research and development by allowing businesses to carry forward all of their net operating losses (NOL), joining 48 other states and the U.S. Tax Code. Today, only Pennsylvania and New Hampshire limit the amount of NOL businesses can use to offset their current and near-future tax liability.

“Rather than imposing new taxes on the productive sector and increasing the public debt by nearly a billion dollars, leaders in Harrisburg could improve Pennsylvania’s economic competitiveness by enacting this pro-growth change, which is especially critical for start-up businesses.

“The technological breakthroughs that will power the U.S. economy in the new century will come from research and development in the private sector. Instead of trying to take over that role, state government can best help hasten the arrival of those energy technologies by fostering a competitive business environment where entrepreneurs, investors, and business leaders can do what they do best: innovate, add value, and create jobs.”

Founded in 1909, the Pennsylvania Manufacturers’ Association is a statewide trade organization representing the interests of the manufacturing sector in Pennsylvania’s public policy process. To learn more about the association and its work, visit www.pamanufacturers.org.

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