by Newsletter
Volume 1 · Issue 6
Greetings From the Executive Director
Pennsylvania House debates on proposed increases in the State sales tax were expected to start next week, but have been postponed until the end of October. The much anticipated start of these discussions at Halloween is quite befitting: this could be scary stuff.
The proposals to increase Pennsylvania sales taxes (and property taxes) have been underway since 2005. Early proposals targeted lowering the PA state sales tax from 6% to 5% in order to eliminate school taxes. The resulting short-fall of funds was to be filled by expanding taxes to certain charitable organization activities (which have been exempt). These proposed taxable activities may include membership fees, fundraising programs, and consulting services.
Many not-for-profit organizations—501 (c) 3s (charities), 501 (c) 4s (advocacy groups), and 501 (c) 6s (business leagues, chambers of commerce, etc.)—are concerned as many are membership-driven and cannot afford taxes on the dues collected. Taxed fundraising activities would be equally devastating to many non- profit organizations. Some essential business-to-business services like accounting, engineering, and legal services will remain tax exempt under a proposal, while other consulting services are undefined and will not be exempt.
Play Fair PA supports the need for tax reform in Pennsylvania. However, potential for multiple bill proposals at the end of October does present the specter of a single bill emerging from the process, which is constructed from pieces of the original proposals.
Please join Play Fair PA's effort to watch this and similar issues that impact our community and economy in Pennsylvania. I invite you to join our coalition by visiting our website at www.PlayFairPA.com or calling 717-712-3775.
— Marcus P. Mitchell, Executive Director
Issue Watch
Perspectives of the PA Business Community: Is the Glass Half Empty or Half Full?
How is Pennsylvania's business climate? Recent surveys by the Commonwealth's Department of Community and Economic Development (DCED) and the Pennsylvania Chamber of Business and Industry (PCBI) report contrasting information.
Responses to the PCBI's 17th annual survey (PDF) of 400 businesses are, in general, not reflecting a positive image of the current state of affairs. The summary of this year's survey shows a "stark contrast" to those from previous years regarding positive feelings towards projected growth.
The state-run survey by the DCED sampled a population of 8,387 businesses. According to the DCED press release, the business climate of our state is strong, improving, and responding well to Governor Rendell's plan for economic stimulation.
There is, of course, the likelihood that the business community views its needs and future differently than the administration. The Chamber's survey, for example, includes questions that mention existing problems. The PCBI survey explored businesses' feelings regarding the administration's proposals currently under consideration where "overall concern and fundamental opposition" was expressed for Rendell's health-care reform and alternative energy mandates. It's unlikely that the state's survey would address negative aspects of any existing problems and their solutions.
However, the Chamber's survey was mentioned in the DCED's press release by drawing on the difference in sampling size where "only 12 percent... or 28 businesses, said the commonwealth's business climate was poor."
While the obvious contrast in the results obtained by these two surveyors draws forth issues on method and purpose in the surveys, the few similarities between the results are cause for concern of the business climate for both businesses and the administration. Such variance cannot be taken lightly and should be investigated further to determine what level there is between the two, what connections can be made, and what changes truly are necessary to support the growth of business in our state.
Upcoming PUC Meetings:
October 25, 2007
November 8, 2007
November 29, 2007
December 6, 2007
December 20, 2007
Who is Regulating PA?
PUC Commissioner Kim Pizzingrilli
Kim Pizzingrilli has been a commissioner with the PUC since 2002. Her second five-year term will expire in 2012. Commissioner Pizzingrilli has taken the lead on a variety of projects within the PUC including consumer education for telephone, electric, and gas competition.
In her time before serving on the Public Utility Commission, Pizzingrilli was the Secretary of the Commonwealth. In this position she held many responsibilities to protect the public welfare; she also served as a member of the Board of Property, the Board of Finance and Revenue, the State Athletic Commission, the Navigation Commission for the Delaware River and its Navigable Tributaries, and the Pennsylvania Municipal Retirement Board.
Pizzingrilli is a native of Erie County, and graduated from the University of Pittsburgh at Johnstown with her degree in business economics. She earned her master's degree in governmental administration at the University of Pennsylvania and has also studied at the Governor's Center at Duke University.
Cheers and Jeers
Cheers! to the new Pittsburgh Central Keystone Innovation Zone. This new KIZ hopes to attract more startup and tech-oriented companies to the area, and will be up and running in 2008. The goals for this KIZ include attracting at least ten new companies, moving five companies into the city, and helping all of these technology companies to flourish in the Pittsburgh area.
Jeers... to the potential relocation of the Allenport finishing plant, located in Washington County (of Wheeling- Pittsburgh Steel Corp.). While no final decision has been made regarding this relocation, it may require layoffs. The CEO claims that employees will not be laid off and that even if the plant is relocated the employees will still have their jobs. Approximately 60 to 70 jobs would be moved out of Pennsylvania.
Member Spotlight:
The GNPCC
The Greater Northeast Philadelphia Chamber of Commerce (GNPCC) was chartered 85 years ago in 1922 dedicated to the success of the community and free enterprise principles. The GNPCC was formed by local businessmen to address the unique issues faced by Northeast Philadelphia businesses, such as transportation and business development.
Al Taubenberger, GNPCC president since 1994, heads a chamber that boasts a diverse 900+ membership and addresses a myriad of commerce related issues. Taubenberger and his "all-star team" of players work to promote business throughout Northeast Phildelphia and the Frankford historic district by hosting annual black tie affairs, supporting 3 historic mansions (Glen Foerd Ryers and Knowlton Mantions), solving local business challenges, leveraging contacts, and acting as good business-citizens in their community (which has transitioned from a rural to suburban neighborhood).
Play Fair PA is happy to welcome the Greater Northeast Philadelphia Chamber of Commerce as a member of our coalition. We share common goals and ideas with the GNPCC's commitment to their community and economic growth. We look forward to working together in solving challenges to business growth and economic development.
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