01/13/2006
Sign up for the 2006 NFIB Small-Business Summit, "Take it to the Hill"
Hundreds of the nation's small-business owners are expected to descend on Washington for the 2006 NFIB National Small-Business Summit June 18-20 at the Grand Hyatt in Washington, D.C. for NFIB's first-ever "Take it to the Hill" event.
Be sure to take advantage of the early-bird registration, which has been extended through Jan. 31. Space is limited, and early registrants can reserve their spot at Summit while saving $50 per person ($100 per couple) on registration fees.
The 2006 NFIB National Small-BusinessSummit will give small-business leaders the opportunity to gather and meet face to face with their senators and representatives on Capitol Hill. Together, NFIB members will share their experiences of how Washington decisions affect small businesses everywhere.
Business and political speakers also include Charlie Cook, Stuart Rothenberg, Newt Gingrich and Tony Snow.
In addition to the early-bird savings offered through Jan. 31, the first 50 online registrants will have the chance to win a free three-night hotel stay at the Grand Hyatt in Washington, D.C., during the Summit.
Register today for the 2006 NFIB National Small-Business Summit!
Action Alert! NFIB to urge State House members to consider the "fair share act," will host roundtable discussions
The Pennsylvania House is poised to consider Senate Bill 435, legislation that repeals the unfair legal doctrine of Joint and Several liability.
Under the doctrine of joint and several liability, a defendant that is found only one-percent liable in a lawsuit can be forced to pay for 100-percent of damages. Small-business owners often are caught in these costly lawsuits as personal injury attorneys cast vast nets in search of a defendant with the "deep pocket." The Fair Share Act replaced joint and several liability with "comparative responsibility," which requires a defendant to pay damages based on their proportionate share of responsibility. If a business owner is 10 percent liable, they would be required to pay 10-percent of the damages awarded.
In the coming weeks, NFIB will be hosting roundtable discussions in Chester, Delaware, Montgomery and Bucks Counties in partnership with the Pennsylvania Chamber of Business and Industry, the Pennsylvania Manufacturers' Association, and the Hospital and Healthsystem Association of Pennsylvania. We are conducting these legislative briefings so state House members can hear firsthand from local small-business owners like you that they should support SB 435.
If you are interested in being part of these important events, please call Kevin Shivers or mark Richards at (717) 232-8582.
We ask all NFIB members to contact their state House member and urge them to vote for SB 435 without amendment when they return to session in January.
Single-payer health insurance enacted in Maryland
Maryland lawmakers voted this week to over-ride a veto by Gov. Robert Erlich of a bill that will force Wal-Mart and other companies to provide health care benefits for their employees. National media report the stakes are high, because 30 other states, including Pennsylvania, are considering similar laws. Organized labor and health care advocates are trying to get companies to cover their employees' health insurance costs and state programs for the uninsured. Critics claim those disgruntled after losing the big national battle over government-run health insurance are aiming to get in through a back door at the state level.
In Maryland, the new law would force companies with more than 10,000 employees to spend eight percent of their payroll on employee health insurance -- or contribute eight percent to the state's Medicaid program. Proposals in New Hampshire and Rhode Island would impose this health insurance mandate on companies with as few as 1,500 and 1,000 employers respectively. Many observers forecast future proposals quickly will affect employers with far fewer workers.
In Pennsylvania, House Bill 1336 by state Rep. Jake Wheatley requires the public welfare department to make a report of employers with 20 or more workers who have employees that use state-run health insurance. Ultimately, the Medicaid reporting legislation leads directly to a pay-or-play health insurance system.
Leadership Councilman Brian Landon to testify before Pennsylvania Senate on SB 854, $2 billion tax increase plan
NFIB members urge Pennsylvania Senate, Gov. Rendell to oppose House-passed tax increase plan.
Next week, leadership council member Brian Landon will testify before the Senate Committee on Legislation on Senate Bill 854, the state House $2 billion tax increase plan.
Senate Bill 854 creates more than $2 billion in new taxes on consumers, small businesses and working families. The mix of new and higher taxes are part of a tax-shifting plan included in SB 854 that dramatically raises the cost of doing business in Pennsylvania and provides no property tax relief for business property owners. The members of NFIB oppose this legislation and is calling on the state Senate and Gov. Ed Rendell to do the same.
The small-business members of NFIB believe a sound, fair tax reform plan should not create or increase business taxes; should provide relief to both residential and business property owners; and include spending controls and taxpayer protections, such as the use of local referendums, spending limits or other caps, to prevent against future property tax increases.
This will be the second hearing the Committee is having on Senate Bill 854. The overwhelming majority of those testifying at the first hearing were opposed the tax increases contained in the legislation. NFIB submitted written testimony for that hearing.
All NFIB members are urged to immediately contact their members of the PA Senate and Gov. Rendell to oppose House-passed tax increase plan.
Reps. Turzai and Reed move to override Gov. Rendell's veto of business tax reduction package
Rep. Mike Turzai (R-Allegheny) and Rep. Dave Reed (R-Indiana County) have announced they are moving forward in an attempt to override Gov. Ed Rendell's veto of House Bill 515, legislation that would cut Pennsylvania's business taxes.
In a letter addressed to Speaker of the House John M. Perzel (R-Philadelphia) and House Majority Leader Sam Smith (R-Jefferson County), Turzai and Reed, cited the need for this legislation by claiming that "between January 2003 and January 2006, Pennsylvania has lost approximately 60,000 manufacturing jobs, according to the Center for Workforce Information and Analysis.
"Governor Rendell's attempt to 'tax and subsidize' economic growth has failed," they wrote. "To cover his economic failure, Governor Rendell has increased funding for the Department of Public Welfare by more than $1 billion.
"Enacting the tax relief included in House Bill 515 will send a message now to job creators around the globe that Pennsylvania once again will be open for business," Turzai said. "Pennsylvania can't afford to wait for this modest tax relief. Pennsylvania workers should be banking pay checks, not cashing welfare checks."
Turzai and Reed called on House leadership to take action to turn Pennsylvania's economy around by moving forward with efforts to override the governor's veto.
The current CNI formula taxes businesses on three factors: in-state payroll (20 percent of liability), in-state property assets (20 percent), and in-state sales (60 percent). Under this formula, an employer's taxes go up every time they hire another worker or expand the physical property of their business. This legislation would phase out the existing formula and base the CNI tax solely on in-state sales. The percentage of tax liability based on in-state sales will rise from 60 percent to a Single Sales Factor of 100 percent over the next four years.
House Bill 515 also increases the cap on carry-forward net operating losses. The cap would increase to $5 million in 2007, $7.5 million in 2008, $10 million in 2009, and $10 million or 75 percent of available losses, whichever is greater in later years.
Currently, Pennsylvania caps the amount of loss at $2 million a year to be used against a profit in any one future tax year. This cap puts Pennsylvania at a disadvantage as compared to other states, and is part of a burdensome tax climate for corporate employers.
Net operating loss carry-forward provisions allow corporate employers to use a business loss to offset income earned in future tax years in order to adjust their corporate net income tax liability. Currently the federal government and 47 states allow for the use of net operating loss carry-forward provisions.
The final version of HB 515 was also amended to reduce the state personal income tax (PIT) from 3.07 percent to 3.05 percent over the next two years.
Piccola drops out of race for governor
Senate Majority Whip Jeff Piccola surprised Harrisburg political insiders this week by deciding not to continue in his bid for the Republican gubernatorial nomination.
Sen. Piccola, who has struggled to build statewide name recognition and trailed the two front-runners in recent independent polls, made his surprise announcement Saturday shortly before the party's central caucus endorsed football legend Lynn Swann by a vote of 77-32. The caucus comprises GOP state committee members from 28 counties in the central part of the state, which is Sen. Piccola's home base.
"I will not be with you as a candidate for governor," Sen. Piccola told the caucus. "I will be with you as a worker in the trenches, working for the Republican Party."
Swann has also garnered endorsement by GOP leaders in Chester County. But the GOP chairman in Allegheny County, where Swann lives outside of Pittsburgh, said a majority of its 21 state committee members favors former Lieutenant Gov. Bill Scranton.
It remains unclear whether either candidate would contest the primary if he loses the endorsement. Republican party leaders hope to avoid a bloody primary fight because it would soak up campaign contributions that the party will need to finance a tough general-election battle against Rendell.
Want to run for office? Retirements announced in Pennsylvania General Assembly
It is becoming increasing evident that there will be many new faces in Pennsylvania's General Assembly after the November General Election. As of Jan. 13, 15 lawmakers had announced their retirements with more announcements expected in the coming weeks.
Those legislators who have announced their retirements include:
| Office | District | Retiring Legislator | Party |
| Senate | 20 | Charles D. Lemmond, Jr. | R |
| House | 46 | Victor John Lescovitz | D |
| House | 51 | Larry Roberts | D |
| House | 70 | John W. Fichter | R |
| House | 92 | Bruce Smith | R |
| House | 117 | George Hasay | R |
| House | 121 | Kevin Blaum | D |
| House | 129 | Sheila Miller | R |
| House | 133 | T.J. Rooney | D |
| House | 140 | Thomas C. Corrigan, Sr. | D |
| House | 147 | Raymond Bunt, Jr. | R |
| House | 150 | Jacqueline R. Crahalla | R |
| House | 156 | Elinor Z. Taylor | R |
| House | 167 | Robert L. Flick | R |
| House | 174 | Alan Butkovitz | D |
NFIB will be conducting interviews of all legislative candidates in districts with open seats in the coming months to decide the direction of our grassroots efforts for the November election and determine which candidates will best represent the interests of Pennsylvania's small-business community.
NFIB's grassroots efforts in 2004 reached over 1 million Pennsylvanians to talk about critical issues like affordable health care, lower taxes and relief from lawsuit abuse to enable businesses to grow and thrive. We also made tens of thousands of phone calls; distributed tens of thousands of post cards, volunteer letters and absentee ballot applications to members in support of pro-small business candidates.
