HARRISBURG, Pa., March 25, 2003 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry today urged Gov. Ed Rendell to embrace efforts to create a competitive business climate in Pennsylvania as a complement to his economic development initiatives outlined in today's budget address to lawmakers.
"While we look forward to reviewing the details of the governor's economic development package, we do not believe it should replace efforts to level the playing field with competing states," said Floyd Warner, president of the Chamber. "Without a long-range plan to establish a competitive business climate that supports job growth, Pennsylvania will not be able to compete fairly in our global economy and new ideas for economic development will fall short of their well-intended goals."
Studies consistently indicate that Pennsylvania businesses pay more in taxes than most other states, which places Pennsylvania at a competitive disadvantage in its ability to attract and retain jobs.
The Chamber supports the adoption of a comprehensive business tax policy that calls for the complete elimination of the Capital Stock and Franchise Tax, a lowering of the Corporate Net Income and the elimination of the Net Operating Loss Carryforward cap.
Warner said the Chamber also is deeply concerned with proposed tax law changes that would impact companies held by out-of-state holding companies. "Just as individuals plan their finances, so too do businesses," Warner said. "With a business tax structure that places Pennsylvania businesses at a disadvantage, companies are going to incorporate tax planning that is conducive to job creation. To remove a legal means for companies to lower their tax burden without addressing the tax environment that forced business' hand to do so will almost certainly cost the Commonwealth jobs and job opportunities."
Warner said the Chamber looks forward to the opportunity to work with the governor to develop a more comprehensive economic development plan.
More information on the Chamber's business tax initiative can be found on its Web site at www.pachamber.org
With more than 10,000 members representing every county 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.
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353