More than 50 Economic Progress Alliance Corporators attended the Annual Meeting of Corporators last evening. We thanked Tom Stanton for his leadership and guidance in serving as the first president of the partnership formed between the former Crawford County Development Corporation and Meadville Area Industrial Commission. New officers Bill Bragg, President; Paul Huber, Vice President; Bob Muth, Treasurer; and Ken Deane, Secretary were introduced.
I was pleased to have been able to report a very full list of accomplishments for 2007 that included:
- 7 new occupants of the Crawford Business Park
- Rehabilitation, construction and occupancy of more than 120,600 square feet of space at Crawford Business Park
- Completed Crawford Woodlands infrastructure development and subdivision plan
- Commenced Moon Tool construction project at Crawford Woodlands
- Completed formal wetlands delineation at Keystone Regional Industrial Park
- 251 Business Retention and Expansion visits with local employers
- 13 financial assistance projects totaling more than $14,000,000 in local, state and federal assistance
- Reconstruction of the Keystone sewage treatment facility
For those who may wish a more inclusive list of 2007 Economic Progress Alliance accomplishments, copies of the our 2007 Annual Report are available by contacting Beth Rekas at 814-333-2299 x 228 or by accessing our web site.
In the next installment of the Economic Insider, I will share our goals and focus for 2008 and the immediate future.
Until next time...
Mark Turner
News and Developments . . .
A recent study from the Tax Foundation shows that most American states tax job providers at a higher rate than any other country in the developed world. Counting the federal rate of 35% alone, the U.S. has the world's highest corporate tax rate. When the federal rate is combined with state corporate rates, the U.S. average is 39.3%, second among OECD (Organization for Economic Co-operation and Development) countries to Japan's combined rate of 39.5%.
Many states impose state corporate income taxes at rates above the national average of 6.6%. Iowa imposes the highest corporate rate of 12%, followed by Pennsylvania's 9.99% and Minnesota's 9.8%. Three states do not impose a major state-level corporate tax. When state and federal rates are combined, states are effectively imposing a corporate tax rate which ranges from 35% to 41.6%. Overall, compared to other OECD countries:
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24 states have a combined corporate tax rate higher than top-ranked Japan
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32 states have a combined corporate tax rate higher than third-ranked Germany
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46 states have a combined corporate tax rate higher than fourth-ranked Canada
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all 50 states have a combined corporate tax rate higher than fifth-ranked France
The burden of the state level taxes can be eased somewhat because they can be deducted from federal taxes. However, they do add a second layer of tax and considerable complexity for multi-state and multi-national businesses. A new study by economists at the World Bank and Harvard University found a strong effect of corporate tax rates on Foreign Direct Investment (FDI) as well as entrepreneurship. FDI can be quite sensitive to the corporate tax rates imposed by state or country. One recent study of the effects of corporate income taxes on the location of FDI in the U.S. found a strong relationship between state corporate tax rates and FDI - for every 1% increase in a state's corporate tax rate FDI can be expected to fall by 1%.
Tax Freedom Day
Pennsylvania - April 21, 2008
United States - April 23, 2008
A lot of what we hear about the economy is dismal news like recession, foreclosures, bankruptcy, unemployment. These are definitely real issues that need to be dealt with. However, it is good once in a while to hear about the positive developments that don't necessarily make the front page.
Jeff Thredgold, President of Thredgold Economic Associates, writes a weekly ezine on economics and the economy called the Tea Leaf. Twice a year, the Tea Leaf focuses only on the good news. Excepts from the recent semi-annual "Happy Talk" highlight some of the favorable developments taking place within the U.S. economy:
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U.S. exports to the world of goods and services are at record levels
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During the early 1960s, the five-year survival rate from cancer for Americans was one in three; today it is two in three and continuing to climb - the highest in the world
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Today's mom and dads, whether working or at home, are spending four to six hours more per week with their kids than did the previous generation
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For every dollar of U.S. economic output generated today, we burn less than half as much oil as 30 years ago
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U.S. corporations hold an estimated $611 billion in cash on their balance sheets, a "tool" to help lessen the chance of, or minimize the impact of, a recession
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Donations to charity set an all-time high in 2006 with a total of $295 billion donated by individuals, foundations and corporations
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Productivity of the average U.S. worker rose an average of 2.6% annually during the past ten years, the largest gain in 40 years. Rising productivity is a long-term key to higher standards of living.
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More than three million girls participated in high school sports last year, part of a record 7.3 million total participants
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The U.S. still accounts for roughly 40% of global research and development spending
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The Consumer Price Index has risen an average of 2.7% annually since 1992
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Roughly 30% of trash was recycled or composted in the latest year, versus 16% in 1990
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Corporate profits now represent more than 12% of national income, up from 7% in 2001, and the highest since recordkeeping began in 1947. Strong corporate earnings are the backbone of rising stock prices
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Global economic growth should exceed 4.0% in 2008 (after inflation) for the sixth consecutive year, a development not seen in generations. Strong growth allows millions to rise above poverty
source: TeaLeaf080305
The Excalibur Charitable Foundation will present "An Evening at Camelot" on Friday, June 6, 2008 at the Shafer Auditorium, Allegheny College, 400 North Main, Meadville. Terry Bradshaw, a popular motivational speaker and former Steeler, will be the keynote speaker, presenting "Why Not Your Best?"
Eric Hoover, a prominent area businessman, started the Excalibur Charitable Foundation in 2005 to give back to the community and help those in need. Every year they hold a major event to raise money for various charitable organizations and to assist victims of disasters such as Hurricane Katrina. All proceeds from this year's event will benefit local charities such as Crawford County CASA (Court Appointed Special Advocates), volunteers who advocate for children who are in the child welfare system due to abuse or neglect.
Doors will open at 5:00 p.m. with the presentation at 6:00 p.m. to be followed by a reception at approximately 7:30 p.m. Cost to attend the presentation only is $60, and for both the presentation and reception is $100. For tickets, call 1-800-611-4931 or go online to www.excaliburcharities.com.
The NW Commission is sponsoring a half-day seminar on General Services Administration (GSA) Schedule Training to be held from 8:30 a.m.- 12 noon on May 22nd at the NW Commission, 395 Seneca Street, Oil City, at no charge.
Helen Koch, Office of Small Business Utilization, will be conducting the seminar and will provide an in-depth overview of the GSA schedule process. Included topics will be an overview of GSA, the process of getting on GSA's schedule, how to access government solicitations, how to submit an offer, and the evaluation and award process.
Becoming a GSA Schedule Contractor can provide an advantage when pursuing federal contracts. Under the GSA Schedules Program, GSA established long-term government-wide contracts with commercial firms to provide access to over 11 million commercial products and services that can be ordered directly from GSA Schedule contractors.
For further information or to make your reservation, contact Lori Kenyon at 814-677-4800 x 104.
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Economic Progress Alliance of Crawford County
764 Bessemer Street, Suite 101
Meadville PA 16335
814-333-2299
04/10/2008