Letters: Editorial on tax missed the mark

CONTRARY to your recent editorial

"No way to create tax policy" (Aug. 14)

, the goal of basing Pennsylvania's corporate tax-rate formula solely on the sales revenue of Pennsylvania companies is a long-standing, thoughtful policy change that has bipartisan support in the legislature, as does the call for eliminating the restrictive and uncompetitive cap on net operating losses.

Republican and Democratic lawmakers recognize that these modest tax changes will help improve the commonwealth's competitive standing. (The changes are also recommendations of the Business Tax Reform Commission.)

Basing the corporate net income tax on sales, payroll and property discourages growth because it penalizes state-based companies for investing in their operations and hiring workers. This is why in 2006 progress was made toward moving closer to a 100 percent sales factor by enacting the current apportionment formula of 70 percent sales, 15 percent payroll and 15 percent property.

Last session, single sales factor legislation was again introduced in a bipartisan manner, generating more than 136 co-sponsors. And this session, legislation to move toward an SSF was reintroduced in both House and Senate by lawmakers from both sides of the aisle.

Rather than repeat misinformation supplied by an organization that embraces a philosophy of more spending, bigger government and greater taxation, more research would have revealed exactly why no longer basing corporate taxes on payroll and property has long been on the General Assembly's radar screen as a meaningful way to foster economic growth.

It also might've been worthwhile to ask why an organized-labor-backed group that purports to be concerned about job loss would oppose a proposal designed to eliminate the penalty imposed on businesses that create jobs in this state.

Gene Barr, Vice President

Pennsylvania Chamber of Business

and Industry, Harrisburg, Pa.