The Current

Common Sense II

Thomas Paine I'm not.  And I swore I’d never do it, but I did.  What a moron.  What was I thinking?!  And to choose the worst possible place to try it… And it just goes to show there’s no amount of education can make up for a lack of common sense.

I’ll get back to my idiocy in a moment, but it provides a great opening for my subject…

The Governor threatens to veto a minor tax cut bill that costs $46 million in the first fiscal year (starting next July), because his administration is on a “pay as you go” system. (By the way, corporate tax collections exceed estimates by nearly $65 million year-to-date, so the money will be there to afford the cut.)

Yet, at the same time he threatens to veto our tax cut proposal, he pushes for and will sign increases in spending that have no offsets to pay for them --

• The Low Income Housing Energy Assistance Program (LIHEAP) bill costs around $25 million in THIS fiscal year;
• The $500 Million expansion to the Redevelopment Assistance Capital Project (RACP) will cost well-over $50 million in debt service for the next 20 years.

Veto a tax cut bill because there’s no money while signing bills despite having no money to pay for them.

Will Rogers said, “common sense ain’t common.”  I didn’t know he worked for our Governor!

This administration actually makes me look like I’m loaded with common sense for trying to shop at Toys R’ Us at 6:00 in the morning on Black Friday!  (Told you I was a moron, but it's all in perspective, now. )

A big week...

It's been a great week here in Pennsylvania for business. First, the General Assembly passed House Bill 515 and it is on its way to the Governor for signature (see below) and even though the Governor says he'll veto the bill, there's still cause for celebration. In addition, Senate Bill 435 (Fair Share Act) passed the Senate! That's really not the biggest news on that bill though -- the trial lawyer attempt to water down the bill failed by a vote of 26-24. It doesn't get any closer or any more exciting that that!! Below is the press release the Chamber issued today on the Fair Share Act.

HARRISBURG, PA – The Pennsylvania Chamber of Business and Industry today thanked Senate lawmakers for taking a stand against lawsuit abuse by voting to re-enact the Fair Share Act. “The business community fought tremendous opposition in an effort to restore fairness and common sense to our legal system, and we won round one,” said Jim Welty, PA Chamber vice president of legislative and corporate affairs. “Inequities in our legal system are just another burden facing job creators; one more factor that has the potential to send job opportunities elsewhere. Improving our legal climate through the repeal of the unfair legal doctrine of joint and several liability sends the right message to job creators that we welcome their presence in Pennsylvania.”

A trial lawyer supported amendment designed to water down Senate Bill 435, the proposed Fair Share Act, failed by a vote of 24-26 before the bill passed the Senate by a vote of 32-18. The law will create a legal system that is fair to both plaintiffs and defendants, holding business responsibly only for the harm it caused and preventing lawyers in personal injury lawsuits to go after companies with “deep pockets.”

This legislation was originally enacted in 2002 through a bipartisan effort. However, House Democratic leaders challenged the law, and this year, Commonwealth Court overturned it based on a procedural error in its passage in 2002. The merits of the law were never in question.

“Repealing joint and several liability was a difficult fight in 2002, and getting the Fair Share Act back on the books as originally passed will be no less of a challenge,” Welty said. “Opponents will attempt to undermine the effort to restore fairness, common sense and personal responsibility to our legal system every step of the way.”

Welty said the PA Chamber and its more than 12,000 members would remain a visible force in ensuring that joint and several liability is repealed for good, as lawmakers from both sides of the aisle set out to do in 2002.

“Many members of Senate sent a clear message that they are not willing to surrender to special interests that reap the benefits of a costly and out-of-control legal system,” Welty said. “The Chamber strongly urges pro-jobs lawmakers in the House to do the same by passing Senate Bill 435 without amendment.”

Time to Walk the Talk...

The General Assembly is considering two critical pieces of business legislation this week. One is the re-enactment of the Fair Share Act (contained in Senator Corman's bill SB 435) that the courts threw out on procedural grounds this past summer and HB 515 which contains several significant business tax changes. Here is the press release we issued today after we participated in a press conference with many other business supporters on HB 515.

PA Chamber: time is now to improve competitiveness of Commonwealth’s job creators

HARRISBURG, PA -- The Pennsylvania Chamber of Business and Industry today praised pro-jobs lawmakers for their commitment to creating a more competitive business climate in the Commonwealth by advancing needed business tax reforms (H.B. 515), and urged Gov. Ed Rendell to sign the legislation when it reaches his desk.

“Bold changes to the state’s business tax structure are needed to boost job growth, and ensure that jobs created today are here for residents tomorrow and in the future,” said Jim Welty, PA Chamber vice president of legislative and corporate affairs, speaking at a Capitol news conference organized by members of the CompetePA Coalition. “The Senate’s pledge to deliver House Bill 515 to the governor this year sends a message to the state’s job creators that it understands what is needed to support job growth in the long-term.”

Welty said the governor will soon have an opportunity to send a message about his commitment to the Commonwealth’s economic vitality.

“On behalf of our more than 12,000 members, and all job creators in the state, the Chamber urges the governor to support House Bill 515 and give business a framework to be competitive. Pennsylvania consistently lags behind our competitor states. With these tax reforms, the state can start to reverse this trend.”

Welty said establishing a Single Sales Factor for Corporate Net Income tax apportionment; raising the cap on Net Operating Losses; and reducing the Personal Income Tax are steps in the right direction toward giving businesses large and small the ability to grow and prosper.

Improving Pennsylvania’s business tax structure is a priority for the PA Chamber, and is a key component of its members’ Agenda for Jobs, a plan developed by job creators for job creation.