I need to respond to the administration’s ongoing rhetoric regarding their business tax proposal.
And go easy on my movie reference – those who know me will tell you it beats the hell out of hearing me sing show tunes. But do indulge me for a moment….
If Toto pulled back the curtain on The Great and All Powerful Oz, here’s the truth that would be revealed about their business tax proposal:
First, while the administration hides behind the 2004 tax reform commission, in reality, their proposal violates the commission’s clear directives. Even The Scarecrow has the brains to distinguish the differences if he read the Commission’s report.
Second, if the state adopts the proposed tax-reporting scheme, called mandatory unitary combined reporting (I call it MUC because, let’s be honest, that’s what it is), Pennsylvania would be crippled for economic development purposes. Think of MUC as those damn Flying Monkeys; picking up taxes from one business (or poppy field) and shifting them elsewhere, creating winners and losers.
Third, even if positive aspects of the administration’s proposal were adopted, companies wouldn’t see relief until 2007, at the earliest. Look, Pennsylvania needs to take a hint from The Cowardly Lion and find the c-c-c-courage to adopt changes that will help create jobs today.
Finally, how can this administration take credit for the capital stock and franchise tax (CSFT) phase-out? The phase-out was enacted by the 2000 General Assembly and signed into law by a previous governor. Wanna know how I know this?? The Chamber helped draft the bill. The fact is that the phase-out is already in law. The only connection this administration has to the CSFT is that it successfully advocated RAISING the tax in 2003. Come on, even The Tin Man has the heart to give credit where the credit is due.
Now, we’ve all seen the movie and know that The Wizard of Oz turns out to be a good guy. Everyone lives happily ever –after. I actually believe this Governor means well, too. He simply needs better direction when it comes to economic policy.
Chamber members collectively agree that government needs to stop dictating and start listening to the professional job creators as to what it takes to make Pennsylvania economically competitive.
So, will somebody over there please don the ruby slippers and click their heels three times…
Comments