Good morning, and welcome to Broad + Liberty's Weekly Reads.

What We’re Hearing: "“I think [the governor] is understating expenses that we’re going to incur in the next few years, and I also think he’s over-projecting revenue. That’s a deadly combination.” – Sen. Tracy Pennycuick (R-Montgomery/Bucks/Berks)

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1. Fourfold tax increase for small businesses proposed in Pennsylvania House

By Liv DeMarco
 

“Against the backdrop of escalating economic uncertainties, House Democrats have introduced a bill that would substantially raise the tax rate on passive income for small businesses across the state.

House Bill 1773, titled the “Fair Share Tax Plan” proposes an increase in taxes on passive income sources for small businesses, including S-corporations, partnerships, and sole proprietors, from the current rate of 3.07 percent to a staggering 12 percent.

This increase would affect all of Pennsylvania’s nearly 180,000 small businesses, along with the millions of workers they employ.”
 

Why It Matters. “HB1773’s approach appears misaligned with broader efforts by the governor and state legislature to bolster the state’s competitiveness and economic health. Specifically, Governor Josh Shapiro’s bipartisan initiative to gradually reduce the Corporate Net Income tax, from 9.99 percent in 2022 to ​4.99 percent by 2031, which is designed to attract business and investment.”
 

Quotable. “Small business owners are much different than Elon Musk and Jeff Bezos and aren’t asking for a quadrupling of their tax rate,” said Greg Moreland, Pennsylvania State Director of the National Federation of Independent Business.

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2. We’re all tired of losing to “friggin’ Ohio”

By Guy Ciarrocchi

“During his recent budget address, Governor Shapiro got a lot of attention by saying that he’s tired of Pennsylvania losing to ‘friggin’ Ohio.’
I agree. I applaud his can-do rhetoric. However, it’s not just Ohio: depending on which economic yardstick is used, Pennsylvania is rated as an ‘F’ (Business News Weekly), 40th (US News & World Report) or 43rd (WalletHub). 

Working with the Republicans and Democrats in the legislature and by putting his words into action within his own administration, the Governor can do this by focusing on two things: common sense and small businesses, where most people go to work each day. Let’s cut the regulatory red-tape. Limit Harrisburg’s involvement in businesses and make those limited interactions smooth-running, quicker and more transparent.”

Why It Matters. “There were dozens and dozens of regulations that were suspended during the Covid era. The goal was to lessen the burdens on small businesses, allowing for focus on keeping operations moving and valuing output over regulation. Many of those regulations were suspended for months, even years.

Pennsylvania should do what many other states have done: eliminate them.”

Quotable. “The governor has the right instinct. He needs to engage the super-majority in the legislature that agrees with him on reducing red-tape — and then direct his administration to follow his own lead.”

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3. Lightning Round

• In open records lawsuit, Department of State frets about ‘misinformation’ if data is released

• Andy Bloom: Enough with Russia, Russia, Russia

• Independent Fiscal Office warns Shapiro budget misses revenue mark by $8 billion

• GOP makes gains in Delaware Valley voter registration numbers

• Trump speech at CPAC centers on national security, border control