Mon Valley business leaders get state update during Chamber luncheon
Mark Soroka
Jennifer Reis, manager of government affairs for the Pennsylvania Chamber of Business and Industry, gave a state legislative update during her talk at the MVRCC’s luncheon.
The Mon Valley Regional Chamber of Commerce’s informational meeting drew individuals representing businesses, municipalities, school districts and legislative offices.
Mark Soroka
An administrator from the state’s top business advocacy organization told local business leaders that Pennsylvania faces serious consequences unless it finds solutions for its current financial predicament.
“WalletHub, a personal finance website, recently ranked Pennsylvania 45th on its list of the best states to start a business,” said Jennifer Reis, manager of government affairs for the Pennsylvania Chamber of Business and Industry. “That’s not acceptable. In order to grow our economy and add more jobs, we need to focus on policies that will make Pennsylvania more business friendly.”
Reis was the featured speaker at a luncheon held by the Mon Valley Regional Chamber of Commerce Tuesday afternoon at Monongahela Valley Hospital’s Anthony Lombardi Education Center. She spoke about a broad range of legislative issues that could impact thousands of businesses across the state.
“The biggest issue right now is the state’s budget,” said Reis. “And once again, the governor and the legislature are at a stalemate when it comes to agreeing on a revenue package to fund the General Fund budget. While we applaud the Governor Wolf for some of his ideas about how to streamline government and consolidate agencies, we were not pleased to learn that his plan includes about $1 billion in taxes on employers. That will hurt business growth in the state.”
Reis worries that a proposed energy tax could have an adverse impact on businesses and consumers.
“This tax would put an additional burden on the energy industry at a time when it is trying to rebound,” she pointed out. “And you’ll see the effects of this when consumers have to pay their bills for natural gas, electricity and telecommunications. The Pennsylvania Chamber of Business and Industry is opposed to taxes that are targeted at certain industries and which would make our state less competitive.”
Reis also was critical of a plan to end a sales tax exemption for commercial storage.
“Hundreds of companies in the state would be adversely effected by a warehouse tax,” she said. “Amazon is considering expanding into Pennsylvania but I can’t imagine they were too pleased to learn about a proposal that includes a tax on commercial storage.”
Pennsylvania’s budget woes are now making it harder for the state to borrow money, Reis added. That further stymies business growth.
“Standard & Poor’s recently downgraded Pennsylvania’s credit rating from A-plus to AA-minus,” she said. “Only Illinois and New Jersey have lower S&P ratings than Pennsylvania. At the end of the day, that impacts the taxpayers. They are the ones that have to foot the bill.”
Reis also urged the legislature to enact regulatory and legal reform measures as well as oppose a proposed minimum wage increase.
“Pennsylvania has a lot of great resources but our tax, regulatory and legal climates are not conducive to business growth,” she said. “What’s more, a minimum wage increase could lead to job losses and harm small businesses.”
On the positive side, Reis applauded that the governor and legislature for coming to an agreement on pension reform.
“While we won’t see any immediate cost savings from that plan, it will help to mitigate this issue,” she said “However, there is more that can be done to see some immediate cost savings and help put a dent into unfunded liability.”
Several attendees made comments during the informational meeting, including state Rep. Bud Cook, R-Coal Center, who was visibly agitated about the state’s budget impasse.
“We do not have a recurring income problem; we have a recurring spending problem,” said Cook. “And now we want to stick businesses with more taxes. I’m a freshman representative and kept my mouth shut for eight months. No more. Unless someone in this district tells me they want more taxes, I’m going to stand on the line and start calling people out in Harrisburg. You need to demand more from your elected officials and tell them that enough is enough.”
In closing, Reis urged local business owners to advocate for legislation that fosters economic growth.
“You have feet on the ground and you are the difference makers in your community,” she said. “Try to cultivate strong relationships with your elected officials and tell them about your concerns.”