06/06/2008
There was good news and bad news this week in Harrisburg.
Good news: Senate Finance Committee advances small business tax cuts
The proposed small business tax cuts mentioned in last week's update were voted out of the Senate Finance Committee this week and will be considered next week in the Senate Appropriations Committee. NFIB members met with state Senate and House leaders last April to talk about meaningful small business tax cuts that could help jump-start Pennsylvania's economy. Senate leaders want to include the tax cuts in the state budget to be decided in June.
Please contact your state lawmakers now to urge them to support NFIB's job-creating tax priorities. If you already have, thank you.
- SB 1387: Raises the state's sec. 179 expensing limit to $50,000
- SB 1418: Raises the minimum exemption to the capital stock and franchise tax to $175,000
- SB 1385: Expands the cap on NOL carry forwards to $5 million or 20 percent of taxable income for tax years after Dec. 31, 2008
- SB 1388: Expands the CNI Sales Factor calculation to 85 percent
Bad news: State House to vote on draconian independent contractor legislation
HB 2400 update: The state House on Tuesday voted 120-82 to make it even easier for the state Labor Secretary to issues fines and ban employers and all companies in which they have an interest from receiving government contracts if they are suspected of violating the proposed independent contractor law. Upon receiving a complaint, the Secretary now has the power to force a business to demonstrate why they should not be found guilty. If the business does not respond in 20 days the Secretary may immediately order disbarment and/or administrative penalties without appeal.
Rep. Dalley (Lehigh) questioned whether the new amendment violated Pennsylvania's Constitution. His motion to strike the amendment on constitutional grounds was defeated 114-88. The bill is scheduled for vote on final House passage on Monday, June 9.
HB 2400 makes it easier for organized labor to intimidate and harass non-union construction companies. The bill prohibits independent contractors in the construction industry from hiring sub-contractors and perpetuates current ambiguity in the law as to whether an individual is an employee or an independent business. If enacted, HB 2400 will force small business owners to spend costly hours with lawyers and judges rather than working on projects and creating jobs.
