02/05/2008
CONTACT: Kevin Shivers, 717-232-8582 or 717-571-0009 (mobile)
or Jason Brewer, 202-406-4435
HARRISBURG, Pa. -- All or part of the following may be attributed to Kevin Shivers, state director of National Federation of Independent Business/Pennsylvania, in response to Gov. Ed Rendell's state budget address.
"We are glad the debate has changed in Harrisburg from talking about tax increases to tax cuts. The fact that we have shifted the dialogue from raising taxes on workers and employers to talking about which areas of the economy to stimulate with lower taxes is a victory for job creators across Pennsylvania.
"But sending tax rebate checks to those who don't pay taxes is misguided. It's not a tax rebate if you don't pay taxes. No doubt many of those who would receive the checks would spend the money immediately, but true tax relief ought to go to the hardworking men and women who are actually paying taxes -- and to the struggling small-business owners who are grappling with high energy costs, skyrocketing health care costs and a wobbly economy.
"Small businesses are Pennsylvania's economic engine, with roughly two out of every three new jobs created coming from small employers. The best investment Pennsylvania can make in its future is not with one-time rebate checks, but with meaningful tax relief for small-business owners to stimulate new investment and job creation. Reducing the personal income tax, providing tax cuts to help small-business owners buy health insurance and aligning the state tax code with federal laws so small employers don't have the expense of maintaining two different sets of books would all give Pennsylvania's entrepreneurs a boost during an economic climate that is uncertain at best.
"With the national economy losing 17,000 jobs in January -- the first such monthly decline since 2003 -- we have to act quickly. Now is the time to give Pennsylvania's small-business owners a boost. With the right stimulus, small employers will invest, expand and create new jobs so that Pennsylvania stays ahead of the pack in a shaky national economy.
"Overall, the new spending package raises serious concerns with small business. The state cannot continue to spend its way to prosperity. Increased spending by government above the rate of inflation presents long term ramifications for future state budgets and Pennsylvania's economy.
"We urge lawmakers to adopt a state budget using the guidelines in the proposed Taxpayer Protection Act which limits new spending to 3.29 percent."
