HARRISBURG, Pa., March 2, 2004 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry today said that effectively communicating information about the governor's budget plans to Pennsylvania citizens and businesses is a huge challenge that is hindered by the propaganda circulated by environmental groups that support the governor's proposals.
"Much of the information being disseminated throughout the state serves only to confuse the issue, obfuscate the facts and lessen the true impact the governor's proposals will have on businesses in this Commonwealth," said Maura Donley, PA Chamber vice president of Communications and Membership.
In his February budget address, Gov. Ed Rendell spoke of the need to revitalize the state's manufacturing industry, which has witnessed significant job losses over the past decade, particularly in recent years. That welcome pronouncement was followed immediately with a proposal to place a new tax on manufacturers in this state to pay for various governmental programs.
"Understandably, the manufacturing community is concerned about the potential impact of these new taxes," Donley said. "The rhetoric and the reality here do not match."
Donley said the governor's proposal would penalize companies for emissions that are allowable under state and federal law. For example, one small York County manufacturer, a company that received the Governor's Award for Environmental Excellence, is faced with new taxes so high as a result of the governor's proposal that the owner may not have any choice but to consider moving some of his operations and his jobs to China. Additionally, several other struggling manufacturers have indicated to the PA Chamber that they may have to ship operations overseas given the current manufacturing climate and the potential for new taxes.
"The governor's view of build it and they will come is flawed," Donley added. "While protecting and enhancing the quality of life here in Pennsylvania is essential, it will not create a better business climate, our young people will not stay here or return here to work -- there will be no jobs. No jobs. No tax base. No quality of life."
One environmental group recently likened the business community to sniping children for questioning the governor's proposals. The organization first claimed that the governor's budget contains $6 in business tax "breaks" for every $1 in business "fee" increases. Later, the ratio went to $5 to $1, and, most recently, $3.65 to $1.
"Lost in this myriad of questionable numbers is any meaningful debate on our current business climate, our competitiveness with other states or any acknowledgement that these numbers take into consideration tax reductions that the governor had nothing to do with -- they were already in law," Donley said. "Pennsylvania has yet to recover from the onerous business taxes that were levied on the business community in the early 1990s. Despite business tax reductions over the last decade, we remain stagnant in comparison with other states when looking at our overall state business tax burden."
Donley said a competitive business tax climate, programs that will truly revitalize our ailing manufacturing base and a governor that really understands the connection between these two will result in a quality of life that is unsurpassed.
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.
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353