HARRISBURG, Pa., June 15, 2004 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry, along with numerous business organizations, today urged state lawmakers to oppose new taxes on manufacturing proposed by the Rendell administration as part of the 2004-05 budget.
In a joint letter to members of the House and Senate, business leaders cautioned that slapping new taxes on Pennsylvania manufacturers would be counterproductive to efforts to retain and create well-paying jobs the industry historically has provided to residents.
"Further adding to the cost of doing business is not the way to revitalize Pennsylvania's struggling manufacturing sector, something the governor explicitly cited as a priority for this budget," said Gene Barr, PA Chamber vice president of Political and Regulatory Affairs. "If the governor is truly committed to growing our manufacturing base, he will rethink funding quality-of-life programs through such an ill-conceived plan."
Additionally, Barr said the repeated negative references used by proponents to describe the manufacturing community ignore the fact that the emissions and waste proposed for taxation are fully permitted under state and federal law, and ignore the significant progress made by business and industry to clean up the environment.
"The Department of Environmental Protection's own website shows the major strides made by the Commonwealth's industries to voluntarily reduce waste and emissions beyond legal requirements," he said. "In fact, many of the companies that would be most impacted by these taxes have been recognized by the Commonwealth for their achievements in this area.
"The unfair characterizations espoused by anti-business lawmakers and organizations greatly discredit those companies that produce the innovative, useful and necessary products and services we all use in our daily lives."
Barr said the business community supports efforts to enhance the quality of life in Pennsylvania.
"A foundation that supports job growth is critical to our quality of life and that of future generations."
A copy of the letter is attached.
VOTE 'NO' ON THE PROPOSED MANUFACTURING TAX
The organizations listed below strongly encourage you to oppose the manufacturing tax proposed by the Rendell administration. At a time when we are seeking to retain well-paying jobs, taxing manufacturers in Pennsylvania would be counterproductive to job creation.
This ill-conceived idea will adversely impact all kinds of businesses, from food processors, to utilities, to companies that make and sell thousands of products that we all use in our daily lives.
The activities proposed to be taxed are permitted under state and federal laws. As such they are not unlawful emissions or wastes, despite the implications from proponents of this tax. In fact, many of the businesses that will be impacted already pay a fee to the state and federal government for these activities.
Pennsylvania industries will pay this tax regardless of whether they make a profit. This is particularly ironic since the phase-out of the Capital Stock and Franchise Tax was enacted, in part, due to widespread recognition that the tax is unfair because it has no relation to profitability.
The proposed manufacturing tax also implicitly ignores the significant strides made by business and industry to clean up the environment. Reports from the U.S. Environmental Protection Agency show that pollutants such as carbon monoxide, sulfur dioxide, and volatile organic compounds are down significantly, while lead has been virtually eliminated from the environment. Further, the state Department of Environmental Protection's website shows the major strides made by the Commonwealth's industries to voluntarily reduce waste and emissions beyond legal requirements. Many of the companies that would be most impacted by these taxes are those that have been recognized by the Commonwealth for their achievements in this area.
When viewed in light of the administration's professed desire to grow our manufacturing base, this tax proposal sends the manufacturing community a decidedly mixed and confusing signal. Our businesses and industries, which are under severe pressure from domestic and foreign competitors, can ill afford any increase to their cost of doing business in Pennsylvania. A "no" vote on this proposal is a vote for a stronger, competitive business environment in Pennsylvania.
Associated Petroleum Industries of Pennsylvania Bedford County Chamber of Commerce Berks County Chamber of Commerce Chamber of Business and Industry of Centre County Chester County Chamber of Business & Industry Delaware County Chamber of Commerce Electric Power Generation Association Exton Region Chamber of Commerce Harrisburg Regional Chamber of Commerce Indiana County Chamber of Commerce Lancaster Chamber of Commerce & Industry Latrobe Area Chamber of Commerce Laurel Highlands Chamber of Commerce National Federation of Independent Business Northern Allegheny County Chamber of Commerce PA Chemical Industry Council PA Coal Association PA Food Merchants Association PA Forest Products Association Pennsylvania Business Roundtable Pennsylvania Chamber of Business and Industry Pennsylvania Manufacturers Association Pennsylvania Waste Industries Association Specialty Steel Industry of PA Tri-County Chamber of Commerce Two Rivers Area Chamber of Commerce
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353