Here’s opponent #2 for Monday: The PA Chamber of Business and Industry in a piece published on their website and sent to their members. I find it amusing that as an advocate for business they say that 76 will harm businesses while other anti-business opponents of the bill claim that businesses will get a free ride. How screwed up is that? What is worse, the Chamber is completely ignoring the statements in the Independent Fiscal Office analysis of HB/SB 76 that state: - The elimination of school property taxes increases the disposable income of property taxpayers. The analysis assumes that 70% of the property tax cut goes to individuals. It further assumes that homeowners spend 80% of the increase in disposable income. (This would be a huge stimulus for Pennsylvania’s economy as that 80% is spent in businesses that the Chamber represents.) - The elimination of property taxes would significantly reduce the property tax share and would clearly increase the attractiveness of the Commonwealth for business location and expansion. If you’d care to let the Chamber hear your opinion on their ridiculous stance you can contact Gene Barr, the Chamber’s President and CEO, at [email protected], 717 720-5469. Property Tax elimination bill is approved by Senate Finance Committee Plan would result in a major tax increase on many businesses September 19, 2014 Last week, the Senate Finance Committee cleared S.B. 76, the so-called Property Tax Independence Act, which would increase the personal income tax and increase and expand the sales tax, applying it to more goods and services. The revenue generated from these tax increases would subsequently be used to offset a reduction in school property taxes in Pennsylvania. This bill and its counterpart in the House, H.B. 76, have been subject to much media attention and debate for years. The PA Chamber aggressively opposes this legislation because, while it’s well-intended, it would represent a significant tax increase on Pennsylvania businesses. The bill has long been based on the assumption that businesses could afford to pay higher income taxes and sales taxes because they would be compensated through property tax relief. However, proponents of the bill fail to consider that many smaller businesses lease rather than own their property and would end up strapped with a 40 percent income tax increase if S.B. 76 were to become law. Employers have also expressed concerns that basing education funding on volatile revenue sources like the PIT and sales tax, which fluctuate with the economy, could expose them to higher taxes in the future. Senate Bill 76 awaits further consideration by the full Senate.
Posted on: Mon, 22 Sep 2014 19:27:02 +0000
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