In a guest editorial that appeared in the Jan. 3, 2010 edition of the Harrisburg Patriot-News, the chamber urged state and federal lawmakers to proceed with caution in current policy debates, the outcomes of which could hinder the private sector’s ability to effectively and efficiently operate.

The full column is available here.

                          

Scott Hodge, Tax Foundation president, said the trend would likely continue beyond economic recovery at the national level if improvements are not made to the Commonwealth’s business tax system.

While Pennsylvania can boast a 13th best ranking for its individual income tax system, that’s where the positive news ends.

As noted in the report: If Pennsylvania were a nation, it would have the highest overall corporate tax rate in the world at 41.5 percent (federal plus state, accounting for the state-local deduction.)

The Commonwealth has the 11th highest state and local tax burden in the nation. Contributing to the ranking is the 9.99 percent Corporate Net Income tax rate, the second highest of the 50 states. In addition, Pennsylvania is one of only 10 states that also tax business assets, and the 2.89 mill rate is among the highest. With the scheduled phase-out of the Capital Stock and Franchise tax frozen for the third time, that rate will remain in place until 2011. The CSFT is not expected to be eliminated until 2014.

Analyzing IRS and Census figures, the Tax Foundation found that Pennsylvania is gaining people who have little or no income but losing people at all other income levels and who are better educated. This means the state’s economy and tax base are shrinking. Even during 2002-03, when Pennsylvania gained slightly more taxpayers than it lost, it still lost adjusted gross income overall.

A similar annual study by United Van Lines also labeled Pennsylvania as a high outbound state, a trend that it says has continued since 1977. The Commonwealth ranked fourth among the highest outbound states in that study.

The Tax Foundation report illustrates that fixing the economy and spurring job creation requires more than government spending and government programs. It requires addressing factors that determine business’ ability to operate effectively and efficiently, including, but not limited to, improving a crippling tax structure.

The PA Chamber made this point in a letter to the editor that appeared in Thursday’s Philadelphia Daily News. The letter was sent in response to a PDN editorial that touted government jobs and spending as the solution to the stagnant rate of job creation that is occurring as the nation attempts to rebound from the recession.

Click here to read the letter as submitted.

                          

Small Business Advantage is a grant program providing 50 percent reimbursement matching grants, up to a maximum of $7,500, to enable small businesses to acquire equipment or processes that result in energy efficiency or pollution prevention. Eligible applicants must be a for-profit small business located in Pennsylvania with 100 or fewer total employees. Most small businesses are eligible, including manufacturers, retailers, service providers, mining businesses and agricultural concerns.

The project to which the grant will apply must be located within the applicant’s Commonwealth facility and save the business at least 20 percent annually in energy or pollution related expenses. Examples of eligible projects include HVAC and boiler upgrades, high-efficiency lighting, solvent and waste recovery systems.

All projects must be completed before June 30, 2010. Applications are available on the department’s website at www.depweb.state.pa.us (DEP Keywords: SBAdvantage). The application package contains the materials and instructions necessary for applying for a grant. Applications are also available by contacting the department of Environmental Protection, Office of Energy and Technology Deployment, by phone at 717 783-8411 or by email at epadvantagegrant@state.pa.us. The department began accepting applications on Dec. 7. Funds for this program will be allocated on a first-come basis. Applicants are encouraged to submit their completed application as soon as possible. The department will accept applications for the program if postmarked by Jan. 15, 2010, or hand delivered by 4 p.m. on Jan. 15, 2010.

                          

While it

                          

The Huntingdon County Visitors Bureau is partnering with Huntingdon County United Way, the US Army Corps of Engineers, The Friends of Raystown Lake, JB Tree Farms, local groups and the member businesses of the Huntingdon County Visitors Bureau to hold an open house at the Raystown Lake Region Visitors Center on Wednesday, December 9, 2009 from 1-8 p.m.

In the true spirit of the season, they will be asking the community to help decorate a money tree in support of the Huntingdon County United Way annual fundraising campaign. They hope to collect $1,000 or more to donate to United Way by trimming the Christmas tree donated by JB Tree Farms.

Popular local musical duo Dan and Galla will be entertaining with seasonal favorites throughout the afternoon. Special performances include the Second Chance Trio of Hesston, violin soloist Ranger Melissa Bean, Gene Hoffman, the Cassville United Methodist choir and MoonShadow Harp Therapy.

The Raystown Lake Region Visitors Center will be trimmed with garland, decorated with lights and Christmas trees from area Senior Centers to provide a festive atmosphere in the holiday spirit to welcome all to the open house. Light refreshments will be served while supplies last.

For information about recreational activities, attractions and places to stay in Huntingdon County and the Raystown Lake Region, visit www.raystown.org or call the Huntingdon County Visitors Bureau at 888-RAYSTOWN.