PA Manufacturers' Association- Press Releases

Archives- June, 2009:

06/18/09

Rendell’s retroactive $2B tax increase would further damage Pennsylvania’s economic recovery, business leaders say

Governor to increase burden on growth by hiking the job-killing Capital Stock and Franchise Tax rate, freezing phase-out

HARRISBURG (June 18, 2009) – Pennsylvania’s leading business advocates today criticized Gov. Ed Rendell’s plan to retroactively increase the Capital Stock and Franchise Tax (CSFT) to 2.89 mills and lock that higher rate in place, inflicting at least $2 billion in additional taxes on the productive sector over the next three years.

The National Federation of Independent Business/Pennsylvania, the Pennsylvania Business Council, the Pennsylvania Chamber of Business and Industry, and the Pennsylvania Manufacturers’ Association joined together in issuing the statement. The four groups represent the full spectrum of employers who make things, add value, create jobs, and pay taxes.

“Pennsylvania is one of the only states in the nation to tax both business income and business assets,” said David N. Taylor, Executive Director of the Pennsylvania Manufacturers’ Association. “Because the CSFT is essentially a property tax, employers are forced to pay it even in times like these when they’re losing money. With all of the challenges facing employers in this recession, the CSFT phase-out is the last pro-growth element in the state budget and sacrificing it now will only delay Pennsylvania’s economic recovery.”

PA Chamber Vice President Gene Barr noted that the CSFT phase-out was enacted due to widespread bipartisan acknowledgment that the tax is unfair because it has no relation to a company’s profitability.

"The last thing we should be doing is delaying again the elimination of this major deterrent to business livelihood and growth. We have to make sure job creators come out of the economic downturn positioned for recovery," Barr said.

In his remarks, Gov. Rendell claimed: “I am not – I repeat - I am not raising taxes on businesses. I am proposing that – in this recession – we delay further business tax cuts.” But by raising the CSFT from 1.89 mills – the rate the Department of Revenue has collected from employers since January 1, 2009 – to 2.89 mills, Rendell is indisputably raising taxes on businesses. As Rendell might recall from his February 4, 2009 budget address, delaying the CSFT phase-out is a bad idea because “rais[ing] these taxes at this time could cause a reduction in much-needed spending and business investment.”

“The global recession is painful for everyone,” said Pennsylvania Business Council President & CEO David W. Patti, “but it will end and when it does, Pennsylvania cannot be less competitive than it was before. In a global economy, employers ‘shop price’ and Pennsylvania is an expensive place to do business. Failing to end this tax now will make Pennsylvania even less attractive.”

In its 2009 “Rich States, Poor States” report, the American Legislative Exchange Council ranked Pennsylvania’s economic performance as 46th in the nation and Pennsylvania’s economic outlook as 42nd. From 2005 through 2008, Pennsylvania’s Gross Domestic Product grew at less than 3/4th of the national average.

“The sooner we eliminate the Capitol Stock and Franchise tax, the sooner we can eliminate other costly corporate welfare programs that Pennsylvania now needs to lure business to the Commonwealth,” said NFIB State Director Kevin Shivers.

CONTACT:
Gene Barr, Vice President, PA Chamber (717) 919-1603
David W. Patti, President and CEO, PBC (717) 329-7207
Kevin Shivers, State Director, NFIB (717) 571-0009
David N. Taylor, Executive Director, PMA (717) 649-6980

06/11/09

PA BUSINESS COMMUNITY PRESENTS UNIFIED PRO-GROWTH AGENDA

“Growing Pennsylvania’s 21st Century Economy” provides
detailed public-policy solutions from across the productive sector

HARRISBURG – More than 20 statewide trade organizations today presented a unified pro-growth agenda to improve Pennsylvania’s competitiveness, titled “Growing Pennsylvania’s 21st Century Economy”. Publication of the proposals was the culmination of nearly nine months of collaborative work among the associations, representing the broadest spectrum of the employers and trained professionals who make things, provide services, add value, create jobs, and pay taxes.

“This is a landmark event,” said John T. Tighe, III – CEO of TMG Health, Inc. and Chairman of the Pennsylvania Business Council (PBC). “For many years, policymakers have complained the business community does not speak with a unified voice, or work for a shared agenda. Those days are over.”

“In my many years of advocating for Pennsylvania’s employers, I have never seen such a high degree of collegiality and cooperation within the business community as we are witnessing today,” said Frederick W. Anton III, President and CEO of the Pennsylvania Manufacturers’ Association.

“Pennsylvania and the nation are in the throes of an economic recession,” said PBC President David W. Patti, “but this recession will end and when it does Pennsylvania must be poised to take advantage of the global recovery by being more competitive. More competitive than Pennsylvania was before. More competitive than other states. More competitive than other nations.”

“Over the last two years small business owners have had to adapt to just about everything this economy could throw at them—housing collapse, credit crunch, rising unemployment—they’ve weathered the storm by making tough decisions and living within their means,” said NFIB state director Kevin Shivers. “All they’re asking of our elected officials is that they do the same.”

The business leaders acknowledged there will be plenty of debate over some of the proposals, and that few will be enacted quickly. “This is a long-term effort that will require public dialogue and a transparent political process. We hope that candidates for office will study these proposals and weave them into their plans for strengthening Pennsylvania,” explained Tighe.

Patti said the coalition envisions a Pennsylvania where, “… our residents enjoy a very high quality of life in sustainable communities; those seeking employment find quality jobs with good compensation; and those who invest their capital and hard work can grow firms that flourish and are profitable.”

The signatories of “Growing Pennsylvania’s 21st Century Economy” are:

Associated Pennsylvania Constructors
Associated Petroleum Industries of Pennsylvania
Broadband Cable Association of Pennsylvania
Hospital & Healthsystem Association of Pennsylvania
Independent Oil & Gas Association of Pennsylvania
Insurance Federation of Pennsylvania
National Federation of Independent Business/Pennsylvania
Pennsylvania Aggregates and Concrete Association
Pennsylvania Association of Community Bankers
Pennsylvania Business Council
Pennsylvania Chamber of Business and Industry
Pennsylvania Chemical Industry Council
Pennsylvania Chiropractic Association
Pennsylvania Coal Association
Pennsylvania Convenience Store Council
Pennsylvania Credit Union Association
Pennsylvania Defense Institute
Pennsylvania Institute of Certified Public Accountants
Pennsylvania Food Merchants Association
Pennsylvania Manufacturers’ Association
Pennsylvania Medical Society
Pennsylvania Restaurant Association
Pennsylvania Telephone Association
TechQuest Pennsylvania

A copy of the report is attached; the report will also be available electronically on the websites of the signatory associations, including www.pabusinesscouncil.org; www.nfib.org/pa, www.pamanufacturers.org, and www.pachamber.org.

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06/10/09

PA BUSINESS GROUPS UNITE TO UNVEIL PRO-GROWTH AGENDA

Representatives of Pennsylvania’s business community will unveil their unified, pro-growth agenda tomorrow, Thursday June 11 at 1PM in the Capitol Rotunda.

The report, “Growing Pennsylvania’s 21st Century Economy”, was developed by more than 20 statewide trade organizations and covers the full spectrum of state public-policy issues including:

• Budget and Government Spending
• Business Taxes
• Energy Affordability and Availability
• Environmental Regulation
• Health Care Affordability and Availability for Employers & Individuals
• Infrastructure
• Comprehensive Legal Reform

Representatives of the allied business organizations will be available for questions following the presentation.

For more information about the event, contact David N. Taylor at (717) 232-0737 or (717) 649-6980 or Dave Patti at (717) 238-1764 or (717) 329-7207.

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