2009 Challenges and Victories
December 18, 2009

Hi. I’m Gene Barr, vice president of the Pennsylvania Chamber. Welcome to this month’s Pennsylvania Chamber Minute.

I want to take this opportunity to recap what the business community faced in 2009, and look ahead to the obstacles and opportunities in the new year.

The worst recession since the Great Depression; a revenue deficit that topped $3 billion and a protracted and divisive state budget debate combined to make 2009 a challenging year for Pennsylvania’s job creators.

Against this backdrop, the Pennsylvania Chamber’s top priority was preventing a repeat of 1991’s disastrous tax increases on business. Thanks to your membership support, we were victorious.

Yes, an increase in the Capital Stock and Franchise tax was a disappointment. But numerous ill-advised tax schemes that would have hurt job creation and economic recovery were stopped, including an increase in the Personal Income Tax; a new tax on natural gas; and a broad-based health insurance premium tax.

In addition, the Chamber was able to keep in place the vendor sales tax discount, as well as several important sales tax exemptions, including those for certain business services.

Plus, thanks to your support, we were able to secure two of the business communities top tax priorities: moving closer to a single sales factor and increasing the cap on business losses.

At a time of when some groups wanted businesses to foot the bill, we came together to ensure that hundreds of millions of dollars of taxes were kept off the backs of job creators.

Beyond the budget, the Chamber continues to work with lawmakers to stop costly energy mandates and fix business privilege tax assessment problems. We are also bringing businesses’ viewpoint to the climate change debate at the state and federal level.

We are working closely with administration officials to resolve the funding crisis within the state’s UC Trust Fund, which is facing a $1.8 billion deficit.

This is only a sampling of what business is up against. There is much more work ahead.

2010 is expected to be equally as challenging, given the unpredictable economic, legislative and political landscape.

The business community stands prepared for what lays ahead as it works with elected officials to effectively address the threats against and opportunities for long-term economic recovery and job growth. Together we can meet these challenges.

On behalf of the Pennsylvania Chamber, I wish you a safe and happy holiday. We look forward to working with you in the new year to create an improved business climate and prosperous economy for all.