Misrepresenting Small Business

For six years, Pennsylvania Governor Ed Rendell has tried to give a tax cut to businesses in his state. And year after year the Democratic governor's proposal has been stymied by a surprising foe: the state's business lobby.

Both the Pennsylvania Chamber of Business & Industry and the state chapter of the National Federation of Independent Business (NFIB) have opposed Rendell's plan to slash the business income-tax rate. Why? The plan would close a loophole that allows certain multi-state companies—mainly retail chains and banks—to shield profits earned in Pennsylvania from state taxes. In other words, for the Chamber and NFIB, ensuring that a handful of corporations continue to enjoy a tax break is worth denying thousands of small businesses a tax cut.

The U.S. Chamber of Commerce and the NFIB, together with their state-level affiliates, are among the country's most powerful lobbying forces. While they claim to speak for small business, a look at their lobbying record suggests their primary allegiance lies elsewhere...

Read the full article in Business Week.