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PA Chamber: Pa.'s big drop in business climate ranking cries out for change in public policy direction
May 11, 2011
HARRISBURG, PA – The Pennsylvania Chamber of Business and Industry today said Pennsylvania’s slide in a new “best-worst-states-for-business” study is proof that the Commonwealth needs to head in a new public policy direction. The Commonwealth has the dubious distinction of being highlighted as one of five states with the biggest drop in the rankings over the past five years – from a middle-of-the-road 27th in 2006 to a dismal 39th this year -- according to the study by Chief Executive Magazine, which surveyed 500 CEOs. “It is unfortunately not surprising that, compared with other states, Pennsylvania is viewed unfavorably by business and industry decisions makers because of our lack of legal reform, having the highest effective corporate tax rate in the United States, and other drains on competitiveness,” PA Chamber Vice President Gene Barr said. “Pennsylvanians deserve a business climate that is conducive to economic and job growth, not a continuation of the status quo that has reinforced a negative view of the Commonwealth’s attractiveness to job creators.” The study indicated that beyond a competitive business tax climate, what CEOs want are balanced policies and regulations that allow them to plan. Intangible factors, such as the state’s overall attitude toward business, also matter. In addition, CEOs expressed the need for controlled spending and addressing out-of-control government debt, among other concerns. “These factors matter to those responsible for private-sector job creation,” Barr said, noting that eight years of a tax-spend-mandate approach to governing has taken its toll, and that nowhere is the vilification of job creators more evident than in the rhetoric from government unions and other “tax-and-spend” proponents in the current state budget debate. “Fortunately, we have a governor and legislative leaders committed to making the Commonwealth a better place for business, which ultimately means a better place for individuals and families,” he said. Barr said beyond the adoption of a fiscally responsible state budget, a good place to start is restoring fairness and predictability to the state’s legal system, particularly with regard to financial liability. “Pennsylvania’s litigation system promotes ‘jackpot justice,’ he said. “But we have the opportunity to get a fair, reasonable civil liability law on the books once and for all with re-enactment of the Fair Share Act. Those opposed to this commonsense legal reform do so at the continued peril of sustainable economic recovery, long-term job growth and the will of Pennsylvanians.” Interestingly, Wisconsin, a state that improved 17 positions from last year’s study, recently enacted a number of comprehensive legal reform measures ranging from product liability to frivolous lawsuits. Barr said commonsense unemployment compensation reform; regulations that balance environmental protection with economic growth; and an improved tax climate would also go a long way toward improving the state’s competitive position. “Job creators welcome the opportunity to work with elected officials who understand that private-sector job creation drives the economy, and that Pennsylvania needs to be welcoming to job creators and their contributions to the Commonwealth’s well-being.”
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