Let’s explore some key business policies in California and see if they are making their way east to Pennsylvania.
The Go Big Small Biz lobbying team has spent two years sitting in and monitoring the Labor & Industry and Finance Committee hearings, reading countless memos, co-sponsored proposals, and bills, many were convinced that Pennsylvania was careening into West Coast territory. But is that really the case? Maybe not as much as we thought.
Comparing Business Policies
Corporate Income Tax
California: 8.84%
Pennsylvania: 8.89%, but it’s dropping
Personal Income Tax
California: 1-13% (with the highest earners taxed at 13%)
Pennsylvania: 3.07%
Sales Tax
California: 7.25% – 10%
Pennsylvania: 6%
Gas Tax
California: $0.68-.080 per gallon
Pennsylvania: $0.58 per gallon
Regulations
California: 403,000
Pennsylvania: 153,000
On the surface, Pennsylvania seems moderate in comparison to California, but there are business bills in California that have crept into Pennsylvania legislation that raise concern. One has made slight progress, while the other, thankfully, has not moved at all.
Misclassification of Workers
In Pennsylvania, the Misclassification of Workers Bills, HB 2412 and HB 2411, started in the construction industry but has since expanded. These bills have echoes of California’s AB 5, which passed in 2019. California Assembly Bill 5 redefines how workers are classified as employees or independent contractors using the “ABC test.” This law has had wide-ranging impacts, particularly on gig economy companies like Uber and Lyft, forcing them to overhaul their business models.
Zero Emission Mandates
Another point of concern is the Zero Emission Lawn Care Task Force Memo in Pennsylvania, which thankfully has not gained much traction. In California, AB 1346 bans gas-powered tools starting in 2024. The state has also implemented the Advanced Clean Truck regulation, mandating that by January 2024, trucks must have zero emissions, with plans for all trucks to go electric by 2035. By 2045, California intends to ban gas and diesel vehicles altogether.
A Word of Caution
While Pennsylvania’s policies may seem more moderate now, these legislative trends from California could potentially lead our state down a similar path. I’m grateful to live in Pennsylvania, a state rich in natural beauty and historical significance. However, we hope that we never feel the need to leave due to poor business policies. We also hope that our kids and grandkids choose to stay. Pennsylvania’s scenic turnpike may be long, but even our out-of-state friends agree that it’s stunningly beautiful. Let’s work to keep it that way—not just in terms of natural beauty but also in terms of economic and business opportunities.
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