Small Image
Large Image

US Trade Policy and Our Cities

August 9th, 2010

We all know the manufacturing industry has taken big hit in employment over the last decade.  However, it still remains a strength of our economy.  There are 26,000 people that still make things in Berks County.  Our state has 500k people and there are 11 million people employed in manufacturing in our nation.  While the employment losses in manufacturing have slowed, we continue to lose these high paying jobs with good benefits as our trade deficit mounts. We are still the world’s largest manufacturing base, but will soon lose that title to China.  The ability to export is essential to retaining our manufacturing base. But we currently import about $40 billion dollars a month more in goods and services than we export.

Rick Malliris, President of KB Alloys and a former member of the Chamber Board shares his thoughts on trade with you in the presentation below.  He knows firsthand the unfair trade practices and policies of some foreign competitors that contribute to our trade deficit.  He helped draft the Trade position recently adopted by our Board of Directors.

  • Many of our cities are in desperate financial trouble and nearing meltdown
  • They used to be manufacturing based, but manufacturing jobs have gone off-shore
  • There is a common problem for these cities
    • Poor, low skilled and uneducated citizens
    • Who are not capable of earning enough to pay the taxes needed for services
    • Who are requiring more services
  • This affects the areas around the cities as well as the core
    • Higher crime rates
    • Deteriorating infrastructure
    • Social stress
    • Increased debt costs (higher risk)
  • Bringing back manufacturing jobs is the best solution
    • Provides middle class incomes
    • Provides skill development for lower education attainment
    • Provides a multiple of supporting jobs
    • Provides needed tax revenues
  • A major reason for the job loss is foreign government mercantilism
    • Particularly China
    • Many subsidies that violate concepts of fair trade and WTO rules
    • For many basic industries the labor savings are far lower than the transport costs to export back to the US
    • We need to level the playing field
  • We need an effective trade policy for the US
    • Countervail cheating
      • Currency manipulation
      • Border tax adjustments
      • Tax avoidance through mislabeling of import codes
    • Enforce agreements
      • Food safety requirements
      • Country of origin labeling
    • Require performance measurement on all trade agreements

Chamber Transportation policy position

June 9th, 2010

Ellen T. Horan – President  & CEO 

One of the key factors for regional competitiveness is a strong transportation network. In a recent survey our members told us we need some major improvements in our region. It isn’t just a Reading issue. In fact, the Governor has called for a special session of the legislature to focus on transportation improvements and the funding solutions that will be needed.

Pennsylvania leads the nation in the number of structurally deficient bridges – 5,645 – that’s more than the number of structurally deficient bridges from Virginia to Maine combined. We also have more than 7000 miles of our total 41000 miles of state roads in very poor condition.

Because billions of dollars are needed there will have to be multiple solutions to fill the funding gap. While no one likes increased taxes or fees, Chamber members were realistic in our recent survey in saying they would support increased use of tolling and gas taxes. You also told us you supported public private partnerships but were skeptical of a vehicle miles traveled tax.

I was initially surprised at the high level of support for tolling from the members. Perhaps that is due to our generally positive experience with the Pennsylvania Turnpike. Did you know that the PA Turnpike was the model for the rest of the country? It was the very first Turnpike opened in 1939.

As a quasi-public entity, a turnpike operator can increase tolls without having to push legislation through the state or federal government. They have more flexibility in selling bonds to raise financing for operations and they can access tax-exempt markets.

The Chamber Board of Directors recently passed a Transportation policy that supports increased funding for transportation through a variety of sources including increased use of tolling and motor fuels taxes, and increased private sector involvement through public-private partnerships. We oppose the use of long term borrowing.

The improvement of 222 North remains our number one priority project. With so much state level focus on the maintenance of our existing roads and bridges, a project like 222 North that is viewed as capacity building rather than maintenance is not being prioritized PennDOT simply due to funding limitations. That means we need to push even harder to keep that project viable. A second priority is the restoration of rail service to Philadelphia. This is a quality of life issue, but also has very strong potential to relieve congestion on 422.

We have an active Transportation Committee that I invite you to join. In addition to working on the Chamber’s positions and policies on transportation, they meet regularly with transportation officials to inform them of safety and maintenance issues on all our roads in the region. We will keep you informed via www.GreaterReadingVoice.com of legislative developments at the state and federal level. This next year will be an active year legislatively.

Ride to Prosperity Report

May 21st, 2010

Ride to Prosperity: Strategies for Economic Competitiveness in Greater Reading

The Ride to Prosperity report was developed by eight leading Berks County economic development and workforce organizations that would like to see a prosperous Greater Reading. The group of eight have come together to brainstorm and develop strategies that can positively affect Greater Reading’s economic development environment over the next three to five years. The five focus areas and goals include: 

  • Entrepreneurship and Innovation:  Stimulate the growth of new businesses and support faster growth paths for existing businesses.
  • Workforce/Talent Development:  Improve educational outcomes in the community, especially in terms of high school, community college, and college completion rates.  Build industry partnerships as a vehicle to update skills of the incumbent workforce and facilitate communication between industry, education, and workforce development.
  • Clusters Revisited:  Identify industry clusters that offer the best prospects for future business development and job opportunities and for retaining existing businesses.
  • Sites and Infrastructure:  Identify and secure additional shovel-ready industrial sites for potential business customers.
  • Quality of Place:  Make the County a more attractive location for current residents, potential new residents, and visitors. 

Please take the time to review the full draft of the Ride to Prosperity Report. You will notice that the report includes strategic directions. Your input on how we achieve implementation of the recommended strategies would be appreciated. We encourage your comments and discussion on our blog!

Heathcare Reform

April 5th, 2010

By: Ellen T. Horan, President  & CEO, GRCCI

On March 25, Congress passed the Healthcare and Education Reconciliation Act of 2010 which amended the Patient Protection and Affordable Care Act of 2010 which they passed just two days earlier.  We now have in place the framework for overhauling our healthcare system as we know it.  While regulatory steps and court cases will further shape the implementation of the bill we now know the core concepts that we will be dealing with.

All individuals not covered by Medicare or Medicaid will be required to obtain health care coverage or pay a penalty.

The bills don’t mandate employer provided coverage, but it does put in place a “pay or play” system for employers with 50 or more employees

Small employers with less than 25 employees and average annual wage of less than $50,000 may qualify for a tax credit for up to 35% of their contribution towards the employee health insurance premium through 2013.

Starting in 2014, individuals and small employers will have access to health insurance exchanges.

Starting in 2013, the Medicare tax base is broadened by imposing an additional .9 percent on earned income in excess of $200,000 for individuals and $250,000 for married couples, and a 3.8% unearned income Medicare contribution tax.  $210 billion is expected to be raised from 2013 to 2019.

Other revenue features include a 40% excise tax on insurance plans with premiums of $10,200 for individuals and $27,500 for families.  And fees will be assessed on pharmaceutical manufacturers and importers based on market share and on healthcare providers. A 10% tax will be placed on indoor tanning services starting this July.

You may face plan design changes if you have annual or lifetime limits on your plan, or certain levels of waiting periods.  The definition of dependent child will be broadened to cover dependent children up to age 26. 

This is by no means a comprehensive list of the changes put in place.  Please refer to the Chamber’s advocacy website, www. Greater reading voice.org for regular updates on the healthcare reform implementation. 

Perhaps now that this legislation is in place we can get Congress focused on our economy.  Two areas that the Chamber is developing policy statements on are Infrastructure Investment and Trade.

Taking Notes from the State of the Union Address

February 4th, 2010

By Ellen T. Horan – President & CEO

When people ask me if I watched the President’s State of the Union address, I said are you kidding, I took notes!

I look for opportunities to listen when our elected officials step out of the day-to-day political fray and express their vision and their leadership. Our Chamber Endorsement Taskforce does the same thing when they interview candidates for office. More important than an individual’s position on any one issue is their vision for our future and their potential to show leadership.

Some of the highlights of the State of the Union, I felt, were Obama’s proposed tax cuts for small business as a short term stimulus and his longer term call for strengthening education, expanding exports, and using nuclear and off-shore drilling to expand energy supplies.

I like that the first issue to come out in follow-up was an incentive based Jobs Proposal focused on small business. The incentives put in place in previous stimulus packages for car purchases, first time home buyers and energy efficiency home improvement products did stimulate consumer spending in those areas which was much needed. The incentive to increase wages will definitely be well received as many companies have frozen wages and/or reduced hours and would like to provide increases if at all possible in 2010.

The President suggests that small businesses that increase wages or hours for their existing employees will be reimbursed for the Social Security payroll taxes they pay on real increases in their payrolls.

The President’s intent to strengthen workforce focused on strengthening the country’s community colleges. Greater Reading is well positioned in that arena with a strong community college that has invested in a Technology Center and can only be stronger if more resources are brought to the table. The President also outlined ways to make college more affordable with tax credits for tuition payments and loan forgiveness. Increasing our education attainment levels is important for our region because we currently lag state and national averages in education levels, which is a significant competitive disadvantage.

Our region also has a higher than average employment rate in manufacturing with 30000 Berks Countians still employed in making things. Companies that export or that are tied to customers that export are better positioned to survive. Here, the President talked about stronger enforcement of trade agreements. That is very important, but we also need Washington to get serious about addressing other countries policies that set their currency at artificially low levels, most notably in China. US manufacturers are placed in a serious disadvantage. I was not surprised to hear our President call for increased investment in research and development in energy, with a focus on biofuels and clean coal. But I was surprised, and pleased, at his call for more nuclear power and off shore drilling for gas and oil. Our region’s energy dependence on coal based electricity would certainly benefit as we can advance clean coal technologies.

While we need to remain vigilant on the issues we oppose such as cap and trade, card check and many components of the healthcare bills, we need to also hold our elected officials accountable to showing leadership and vision in the areas of energy, workforce and our countrys global economic positioning. We need to let them know… we’re taking notes!

What were your thoughts on President Obama’s proposed items discussed druing the State of Union address?

Accredited
© Copyright The Greater Reading Chamber of Commerce & Industry
All rights reserved | 601 Penn Street | Suite 101 | Reading, PA 19601 | Tel 610-376-6766 | Fax 610-376-4135 | Email

Web: © launchdm.com || proudly powered by WordPress