Pennsylvania Takes Big Tax Cut Step

Pennsylvania Governor Edward G. Rendell's 2004-05 budget reduces taxes on businesses by $6 for every $1 in proposed new fees on the release of toxic emissions and the disposal of residual waste, Secretary of the Budget Michael Masch said today. He described the Governor's overall budget proposals for 2004-05 as a visionary program that will boost Pennsylvania's economic competitiveness and dramatically improve the Commonwealth's quality of life.

Rendell's budget proposal contains over $176 million in new business tax cuts and business tax credits," said Masch, "including the much- desired resumption of the phase-out of the Capital Stock and Franchise Tax, expanded research-and-development tax credits, a new historic-preservation tax credit, expanded educational investment tax credits, and new tax incentives for technology transfer and university-business partnerships.

"By contrast, the Governor's proposal includes just $27 million in new business fees on the release of toxic emissions and the disposal of residual waste," Masch said. "That means that business-tax reductions outweigh business-fee increases in the budget by a ratio of 6-to-1.

If this sticks, this is a big deal and could have a significant impact on businesses expanding in Pennsylvania.

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