Effort Would Make State More Business Friendly
A group of
Republicans in the Pennsylvania legislature this week put forth proposals for
legislation that would ease the tax burden on small businesses in the state.
Lawmakers hope that by giving small businesses a break, they can help boost the
economy and reduce the burden on business in general.
What Would The Proposals Do? State Rep. Seth Grove (R-York) proposed a
bill allowing small business owners to deduct net operating costs in much the
same way corporate taxpayers can, insisting that such deductions would make the
state “more attractive for small business.” Rep. Stephen Bloom (R-Cumberland)
sponsored a proposal supporting regulations similar to those of the IRS,
allowing for “like-kind exchanges” without taxes due at the time of the
exchange. Rep. George Dunbar (R-Westmoreland), meanwhile, sought to raise
limits on the amount of depreciation on large business write-offs from $25,000
to $100,000. Supporters of the legislation say that simplifying the state’s tax
code and making it more fair for small businesses would allow those businesses
to “focus on growing the jobs our citizens need,” according to Rep. Bloom.
business community has expressed support for these proposals, saying
Pennsylvania’s current tax system is unfair to them and out of step with the
rest of the US. In recent years, Pennsylvania has been ranked between the
middle and the end of the list in terms of its friendliness to businesses, and
these lawmakers hope the proposals will rectify that situation, making for a
more business-friendly tax climate and stronger small businesses.
The Pennsylvania Independent features a breakdown of
the proposals and notes the support of Kevin Shivers, executive director of the
Pennsylvania chapter of the National Federation of Independent Businesses. “If
we reduce the burden that these small job creators face, we believe that we
will generate more tax revenue because these small businesses will be more
profitable,” Shivers said. The Beaver County (PA) Times similarly notes Shivers’
observation that the proposals would help small businesses flourish. “That’s
good for the Pennsylvania economy and ultimately for job growth,” he said. The
Times also mentioned the NFIB pointed out that Bloom’s proposal on “like-kind
exchanges” reflected policy already allowed by the Federal government and the
other 49 states. The York (PA) Dispatch focused mainly on Rep. Grove’s
proposal, which would, in his words, “eliminate the paperwork burden” faced by
more about NFIB in Pennsylvania.