House Majority Leader Smith Urges Gov. to Sign Pro-Job Growth Tax Relief Bill

HARRISBURG – The high cost of doing business in Pennsylvania would be reduced if Gov. Ed Rendell signs the House Bill 515 tax reductions as passed by the Senate tonight by a vote of 35 to 13 according to House Majority Leader Sam Smith (R-Jefferson)."As Pennsylvania loses more and more good-paying jobs -- jobs which include health insurance, it has become critical that we lower the cost of doing business here," Smith said. "We want employers to stay and expand in Pennsylvania. Without employers, there are no jobs. It really is that simple." The bill would, over four years, establish a single sales factor for Corporate Net Income tax apportionment; raise the cap on net operating losses to $10 million or 75 percent of a company's taxable income; and lower the state's Personal Income Tax to 3.05 percent.The House bill originally passed the House overwhelmingly Nov. 22, 2005 by a vote of 183 to 11. The bill is part of the House Republicans legislative package, the Keystone Manufacturing Initiative, or KMI intended to lower the cost of doing business in the state for employers. The goal is to lower taxes; reform the workers’ compensation, unemployment compensation and legal systems; and cut burdensome red-tape. Ø The Pacific Research Institute ranks Pennsylvania 45th among of the 50 states in its 2004 Economic Freedom Index. Ø A 2004 Cato Institute study shows that Pennsylvania's primary business tax rates remain the third and second highest in the nation. Ø Pennsylvania ranks fifth in the nation in development spending per capita and 48th in population growth. According to Smith, Pennsylvania has lost approximately 57,000 manufacturing jobs over the last three years.
"Pennsylvania needs to be job-friendly again," Smith said. "Young, talented, educated people are fleeing the state for opportunities elsewhere."
These tax reductions are part of the Republican Playbook for Progress, an aggressive and positive legislative agenda unveiled jointly by Smith, along with other members of the House Republican Caucus and members of the state Senate Republican Caucus in February.