Small business
group will press for "death tax" relief as
well
PENNSYLVANIA, Feb. 8, 2000 --
The Commonwealth's leading small business group
gave Gov. Tom Ridge's budget plan a warm
reception. "We're very pleased," said
NFIB/Pennsylvania Director Jim Welty, of the
Governor's call to immediately cut -- and
ultimately eliminate -- the state's capital
stock and franchise tax.
"Even though
most small business owners pay only the minimum
tax amount, it has always rubbed them the wrong
way," Welty said. "They view it as an egregious
specimen of double-taxation."
As now
administered, the tax requires corporations to
go through a complex calculation of stock values
and other assets. Based on that calculation,
businesses pay at a rate of 10.99 mils or make a
minimum payment of $200.
In today's
budget address, Gov. Ridge called for the
immediate elimination of the minimum tax
provision, a reduction of the mileage rate (to
8.99 mils) and a long-term (10-year) phase out
of the entire tax.
"We've been urging an
end to the minimum, a rate reduction and
eventual total elimination for years," NFIB's
Welty said. "On this issue, the Governor hit
three-for-three today, and the small business
community couldn't be happier with that
performance."
While obviously pleased
with the Governor's capital stock tax
initiative, Welty said his group will push for
additional relief on another tax front:
inheritance taxes.
"Pennsylvania's
punitive death taxes make it incredibly
difficult to pass family farms and businesses
intact to the next generation," Welty said. "The
Governor's silence on this issue was a bit
disappointing, but in no way disheartening. Both
Senate and House leadership have signaled their
willingness to address the death-tax problem,
and we will work with them to bring long overdue
relief on this front, as well.
CONTACT:
Jim
Welty @ 717/232-9321 or Jim
Weidman @
202/554-9000
|
