HARRISBURG, Pa., Dec. 23, 2005 (PRIMEZONE) -- Pennsylvania Governor Ed Rendell made a choice against job creation with a Christmas Eve veto of a business tax reduction bill (H.B. 515) that would have helped to create a stronger, more competitive business climate in the Commonwealth.
"Despite numerous opportunities to prove otherwise, our governor again demonstrated by his actions that he is clearly not on the side of job creators," said Maura Donley, vice president of communications for the Pennsylvania Chamber of Business and Industry. "Signing into law the modest tax reductions contained in House Bill 515 would have been a tremendous gesture by the governor to show his stated commitment to moving the state forward. It's unfortunate he choose to ignore the needs of job creators considering there is money in the budget to realize these changes, which would have taken effect in the upcoming fiscal year."
Donley said Pennsylvania must create a business climate that enables companies to compete in the long-term both nationally and on a global scale. This includes making structural changes to the state's business tax system, which H.B. 515 would have begun to do on an incremental basis.
"The Rendell administration's narrow focus on government subsidies as a way to stimulate economic development does nothing to ensure that jobs created today are here tomorrow and in the future," she stressed. "This short-sighted approach will not reverse Pennsylvania's trend of economic underperformance in comparison to most of the other states in the nation."
According to the U.S. Bureau of Labor Statistics, from October 2004 to October 2005, Pennsylvania's change in employment was tied for 34th and still below the national average. And according to the U.S. Bureau of Economic Analysis, from 2003 to 2004, Pennsylvania was 44th in GSP growth, signaling a steady downward trend from 2001, when the state ranked 16th.
Additionally, the PA Chamber's 2005 Economic Survey revealed that only 18 percent of job creators view Pennsylvania as business friendly -- a considerable drop from 41 percent in 2001. Perhaps most alarming, the survey indicated that 40 percent of businesses said they would leave the state if they could -- up from a mere 16 percent in 2001.
A recent poll by the Pittsburgh Business Times indicated that 88 percent of respondents viewed the state as having an unfriendly business tax structure.
Donley commended pro-business lawmakers who worked with the PA Chamber and other business groups to get H.B. 515 to the governor's desk for recognizing that bold changes are needed to make Pennsylvania a leader among states in the competition for jobs.
"Unlike the governor, Pennsylvania's job creators are not content with a Commonwealth that consistently trails the pack," Donley concluded. "On behalf of our more than 12,000 members, the Chamber urges the governor to stop saying he is on the side of business and start acting that way by supporting meaningful and realistic job creation measures."
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with more than 12,000 members covering all 67 counties. More information is available on the Chamber's website at www.pachamber.org.
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353