HARRISBURG, Pa., July 4, 2004 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry praised state lawmakers for rejecting the administration's proposed manufacturing tax. The chamber stopped short, however, of saying that this budget will benefit business.
"Taxes on allowable manufacturing emissions and waste disposal have no relation to a company's profitability and would have stifled job creation and economic growth in an industry that is struggling to maintain jobs. We thank the General Assembly for rejecting, in a bi-partisan manner, the Governor's ill-conceived taxes on Pennsylvania employers and citizens," said Jim Welty, vice president of legislative and corporate affairs.
Welty added, "Following two years of delay of the phase-out, we were encouraged early in this budget process that additional reductions in the capital stock and franchise tax were going to be enacted. Unfortunately, business is disheartened that this governor opposed even a nominal reduction in this onerous tax while sitting on more than a half a billion dollars in surplus. Rather than seizing the opportunity to create a better business climate, the administration chose to ignore the broad-based business community."
"Several years ago, the phase-out of the capital stock and franchise tax was enacted due to widespread acknowledgment that the tax is unfair and uncompetitive," Welty said. "It is widely understood that this tax represents a major deterrent to business growth because it essentially penalizes companies for investing in Pennsylvania."
"We are pleased that many lawmakers, particularly Republican leaders, understand the significant burden this tax places on business, and we appreciate their efforts to re-establish the original phase-out. As much work needs to be done to improve the state's overall business climate," he added, "we pledge to work with those leaders who understand the importance of a competitive tax structure in creating a stronger business environment in the Commonwealth."
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)