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Taxing one industry’s profits not the answer for state's transportation funding needs
Chamber urges viable options that have widespread support The PA Chamber is working with the Rendell administration, elected officials, industry stakeholders and business groups to find common ground on funding options for the Commonwealth’s transportation infrastructure needs. Many ideas have been discussed, and there is general agreement on a number of concepts. While it is apparent that common ground can be reached, Gov. Ed Rendell instead announced that the focal point of his plan is a potentially unconstitutional tax on oil company profits – his second attempt to enact such a tax. And in another example of government’s ever-overreaching arm, the governor wants to involve the state’s Attorney General in investigating businesses’ private funds in order to ensure that the tax increase is not passed on to consumers. The potential for endless legal challenges should be enough to give lawmakers pause about supporting an oil company profits tax. So too should the fact that such a tax would hurt hundreds of medium- to small-size home heating oil companies. Further, it is counter-productive to tax oil company profits when the state’s pension funds rely on those profits to increase investment proceeds (looming public pension crisis anyone?). PA Chamber members recognize that failing to properly address the Commonwealth’s aging infrastructure will have significant economic and quality-of-life implications. That’s why members support a number of viable funding options. But the oil company gross profits tax is one option that should be stopped in its tracks. ### Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of Business. |
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