GOVERNMENT RELATIONS
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Improving Business Climate
To promote a competitive business climate for southwestern Pennsylvania’s technology companies, the Council seeks to:
Eliminate the Capital Stock and Franchise Tax (CSFT)
Very few states require businesses to pay separate taxes on corporate net income and capital worth, but for many years Pennsylvania has not only done just that, it also levied some of the highest tax rates in both of those categories.
In 2000, Governor Tom Ridge signed legislation that mandated the full elimination of the capital stock and franchise tax by the end of 2008. Unfortunately, subsequent administrations promoted changes to that original schedule, keeping the CSFT on the books until 2011.
Legislative Update
- In his 2008-09 budget address, Governor Rendell proposed yet another revision to the phase-out schedule to temporarily slow the planned 2009 reduction of the CSFT to allow the Commonwealth to capture an additional $40 million in business taxes.
- The Pittsburgh Technology Council was one of the strongest proponents of the plan to fully eliminate this uncompetitive tax and we will work aggressively to keep its demise on schedule.
Go Government. For more information about the Council’s Government Relations initiatives, or if you have a specific issue that you would like to see the Council address, please contact Brian Kennedy, Vice President, Government & External Relations at 412.918.4297.