HARRISBURG, Pa., Dec. 23, 2003 (PRIMEZONE) -- While stressing that much work remains to make the Commonwealth's business tax structure more conducive to job creation, the Pennsylvania Chamber of Business and Industry today commended legislative leaders for resolving the budget dispute and passing a state spending and tax plan.
"Pennsylvania's business community was braced for a tremendous hit early on in the budget process," said Jim Welty, Vice President of Legislative and Corporate Affairs for the PA Chamber. "Balancing the budget solely on the back of business, which already contends with a tax structure that is one of the most onerous and complex systems in the nation, would have had a disastrous impact on job creation and economic growth."
"A budget that allocates a needed tax increase across the board is more acceptable than what was originally proposed," he added. "However, that's not to say there are not legitimate concerns with this budget, such as the decision to freeze the scheduled phase out of the Capital Stock and Franchise tax, the gross receipts tax on wireless and most landlines, and an increase in the PIT, which dramatically impacts S Corporations and sole proprietorships in Pennsylvania."
Welty said the Chamber remains steadfast in its position that any new taxes on business or increases in existing business taxes are regressive and counter-productive to the economic recovery that appears to be at hand.
"We should be fostering business and job growth. Pennsylvania's tax structure should be a selling point for new businesses to locate here and for existing companies to stay and grow," he said. "Unfortunately, it has become a selling point other states can use to lure job opportunities away."
Welty said the PA Chamber is committed to working with the administration and the General Assembly to address the Commonwealth's business tax structure in a way that encourages economic growth and makes Pennsylvania more competitive in the fight for jobs and job opportunities.
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association and the fastest growing state chamber in the United States, with more than 10,000 members covering all 67 counties. More information is available on the Chamber's website at www.pachamber.org
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353