Another public policy briefing for you. The below is a letter that The Chamber and many other pro-business organizations signed onto to help create a better business climate in Pennsylvania.
The CompetePA coalition wants to reiterate its position on business tax policies as the Joint Conference Committee continues to work on the 2009-10 budget.
As you know, CompetePA formed in 2005 and brought the business community together around a common set of priorities. These priorities – removing the cap on net operating loss carryforwards (NOL), creating a singles sales factor apportionment formula (SSF) and ensuring the phase-out of the capital stock and franchise tax (CSFT) – have remained the same. More than 130 businesses and business organizations that are members of CompetePA have been diligent in attempting to accomplish gains to improve the business climate for the Commonwealth over the last four years.
CompetePA stands united and opposed to stopping the phase-out of the Capital Stock and Franchise Tax (CSFT), as this represents a tax increase for Pennsylvania businesses. Stopping or increasing this tax – as it has been proposed by some – will stall, not encourage, economic recovery. Businesses have already planned for this phase out and increasing it will create an unplanned expenditure at a time when businesses are struggling with cash flow and job retention.
Additionally, as stated above, CompetePA is also focused on structural business tax changes that have been a priority of the collective business community for several years – removing the cap on NOL carryforwards and creating a SSF apportionment formula. As is the case in nearly every other state, except Pennsylvania, manufacturers and other high technology firms whose business models are cyclical by nature need to see improvements in the current NOL cap to offset future liabilities with current losses. In addition, all Pennsylvania businesses should be encouraged, not punished, for increased capital investment and job creation, as is the purpose for an increased sales factor apportionment formula.
CompetePA recognizes the significance of the current state budget shortfall. We understand that the recession makes budgeting very difficult this year, and that many constituencies are asking the state for more money; not less. But Pennsylvania’s future depends on a competitive job-creating climate that can only be achieved by holding the line on spending and taxes. We understand what it means to have to tighten the budget. Businesses across the Commonwealth have been making very hard decisions over the last six months, implementing tough cuts across our companies, and we urge the Administration and the General Assembly to do the same.
Now more than ever, Pennsylvania needs to send the message that we have a competitive business climate. When the economy recovers, let’s make Pennsylvania one of the first places to grow new jobs, not the last.
CompetePA is a coalition of more than 130 businesses and organizations representing more than half of the private sector workforce in Pennsylvania, committed to improving the business climate in order to encourage economic investment 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.
Members of the CompetePA Coalition:
African American Chamber of Commerce of Western Pennsylvania
Air Products and Chemicals, Inc.
AK Steel Corporation
Allegheny Conference on Community Development
Allegheny Technologies Incorporated
Aqua America, Inc.
Armstrong World Industries, Inc.
Beaver County Chamber of Commerce
Bentley Systems, Incorporated
Binney & Smith
Blair County Chamber of Commerce
Bombardier Transportation (Holdings) USA Inc.
C B Richard Ellis/Pittsburgh
Channel Craft & Dist. Inc.
Chaska Property Advisors, Inc.
CNX Gas Corporation
CONSOL Energy Inc.
Cowden Associates, Inc.
Crown Holdings, Inc.
Delaware County Chamber of Commerce
Dick's Sporting Goods
E.A. Quirin Machine Shop, Inc.
Eat 'n Park Hospitality Group, Inc.
E.I. du Pont de Nemours and Company
Ellwood Group, Inc.
Forms + Surfaces, Inc.
General Electric Company
Gerome Manufacturing Company, Inc.
Grant Street Associates, Inc.
Greater Lehigh Valley Chamber of Commerce
Greater Northeast Philadelphia Chamber of Commerce
Greater Philadelphia Chamber of Commerce
Greater Pittsburgh Chamber of Commerce
H.J. Heinz Company
Harrisburg Regional Chamber
HRPT Properties Trust
Jaycee Foods, Inc.
John Deklewa & Sons, Inc.
Johnson & Johnson
Latrobe Area Chamber of Commerce
Leed Foundry, Inc.
Manufacturer & Business Association
Manufacturers’ Association of Central Pennsylvania
McTish, Kunkel & Associates
Meadville-Western Crawford County Chamber of Commerce
MidAtlantic Employers' Association
Mon Valley Progress Council
Mon Valley Regional Chamber of Commerce
Monroeville Area Chamber of Commerce
Montgomery County Regional Business Alliance
NAIOP Greater Philadelphia Chapter
NAIOP Pittsburgh Chapter
National Federation of Independent Business
Northeast Pennsylvania Manufacturers & Employers Association
Northern Allegheny County Chamber of Commerce
Novus Staffing Solutions
Oxford Development Company
Pennsylvania Business Council
Pennsylvania Chamber of Business and Industry
Pennsylvania Coal Association
Pennsylvania Convenience Store Council
Pennsylvania Food Merchants Association
Pennsylvania Foundry Association
Pennsylvania Manufacturers' Association
Pennsylvania Steel Company, Inc.
Pittsburgh Airport Area Chamber of Commerce
Pittsburgh Business Center
Pittsburgh Stage, Inc.
Pittsburgh Technology Council
PNC Financial Services Group, Inc.
Rankin Property Management, LLC
Regional Business Alliance
Renal Solutions, Inc.
Riverside Center for Innovation
Rohm and Haas Company
Schultheis Automation Control Systems, Inc.
SMC Business Councils
Snavely Forest Products
Somerset County Chamber of Commerce
Sony Technology Center - Pittsburgh
South Hills Chamber of Commerce
Southwestern Pennsylvania Growth Alliance
Southwestern Pennsylvania Regional Advocacy Council
Specialty Steel Industry of Pennsylvania
The Hershey Company
Timken Latrobe Steel
Tregembo Ford Inc
TriCounty Area Chamber of Commerce
Tyco Electronics Ltd.
United States Steel Corporation
Universal Health Services
University City Housing Company
Valley Tire Co. Inc.
Value Ambridge Properties
WESCO Distribution, Inc.
West Branch Manufacturers Association
Westmoreland Chamber of Commerce
World Kitchen Inc.
Wyeth Global Pharmaceuticals
Zippo Manufacturing Company