Next week, the House and Senate Appropriations Committees will begin reviewing Governor Rendell’s $28.3 billion budget proposal. Lawmakers face a June 30 deadline for passage of a state spending and tax plan (fyi, none of Rendell’s five previous budgets has passed by deadline).

Throughout what is sure to be an interesting budget process, we’ll be urging lawmakers to improve the competitiveness of Pennsylvania’s tax structure for businesses. In a recent Op-Ed in the PBJ, our President & CEO Mark Schweiker encouraged Governor Rendell to include in his budget the continued phase-out of the Capital Stock and Franchise Tax, as well as two improvements to the state Corporate Net Income Tax- elimination of the cap on Net Operating Losses and full implementation of a Single Sales Factor.

Governor Rendell’s current budget proposal, however, slows the reduction in the Capital Stock and Franchise Tax and doesn’t address the Corporate Net Income Tax. Consequently, we’re supporting separate legislation, introduced by Rep. Mike Gerber (D-Montgomery) and a bipartisan group of lawmakers, that makes these important tax changes.

In the coming weeks, we’ll be working with CompetePA (a broad-based, statewide coalition of businesses and organizations) to build support in the legislature for Representative Gerber’s bill as well as companion measure in the Senate.

We’ll be asking you to join us in contacting lawmakers. For more information, visit the Public Policy section of our Web site.