October2015nepabusinessjournal

Page 1

Business Journal NORTHEAST

$1.50

PENNSYLVANIA

THE REGION’S AWARD-WINNING SOURCE OF BUSINESS NEWS AND INFORMATION

Data-driven: William McLaughlin, Ph.D., assistant professor of computational biology at TCMC. Photo by Tom Bonomo

OCTOBER 2015 VOL. 30 NO. 11

‘Budget fight about taxes, taxes and more taxes’ By Kathy Ruff

I was joking with people they might see snow on the ground before we have a final resolution. — Gene Barr, Pa. Chamber

(Note: At press time, budget negotiations continue as the legislature returns to Harrisburg.) Financial deadlock persists in the halls of the Capitol building as legislators continue debate on

By Dave Gardner

adoption of Pennsylvania’s 2015-16 budget. After more than three months of little progress since the beginning of the fiscal year, politicians remain at odds on how best to meet the state’s financial needs. Gov. Tom Wolf vetoed a last-minute $30.18 billion proposal on June 30, citing, among other things, the lack of a severance tax on natural gas

ALSO INSIDE:

Health Care Update Computational

Gov. Tom Wolf discusses his budget priorities at State Street Elementary School, Larksville Please see BUDGET on page 5 in August. — Mark Moran

Regulations: The hidden tax

Like an approaching hurricane, government regulations are buffeting American business. The business community fears where this regulatory trend will lead. Jeffrey Alves, Ph.D., dean of the Sidhu School of Business at Wilkes University, holds a common business opinion — increasing government regulation doesn’t help. “Business doesn’t want its hands tied,” says Dr. Alves. “Complaints about regulations and taxes are always among the top five obstacles I hear about from businesses every day.” Alves says business wants to comply with government regulations, but it can be difficult due to the sheer number of rules. OSHA alone now issues 300 standards. Specific requirements from the Americans with Disabilities Act often take years to develop from case histories — specific regulations are not spelled out beforehand. This leaves companies to cope with mandates delivered in hazy “big picture” format, absent any detail. “Even Wilkes has to operate a risk management department to be in compliance,” says Dr. Alves. “All of this costs money.” The federal tax code may be the largest monster business faces. In 2014, the code numbered

Stagnant Latest Census report finds

no difference in median income — for third consecutive year .............. 8

Unaware of chip card changes

Gallup finds most businesses don’t know they are the hook to upgrade.. ..................................................... 19

If you read the Code of Federal Regulations (CFR) at 300 words per minute on a full-time basis, it would take you nearly three years to get through just the version of the CFR published in 2012. That’s 220 times longer than it would take to read through J. R. R. Tolkien’s voluminous The Lord of the Rings fantasy. — Source: Mercatus Center at George Mason University, The Code of Federal Regulations: The Ultimate Longread, by Patrick McLaughlin, April 2015

74,608 convoluted, loophole-plagued pages, which Dr. Alves believes makes basic fairness impossible. Then there’s starting a business in Pennsylvania. According to Dr. Alves, state government provides a 150-page guide detailing state regulations, applications and permits.

Instead of expansive government regulation, Dr. Alves favors a more laissez-faire system. Also needed: better intervention by community groups to fix social problems. “We all have a responsibility to make own choices and deal with the consequences,” adds Dr. Alves. “We shouldn’t look to government to fix everything.” Please see REGULATIONS on page 10

TS_CNG/NPBJ/PAGES [B01] | 09/30/15

biology expects to find new purposes for old drugs ................................ 26

15:47 | ZYGMUNTLIZ

Pumpkin spice everything

Psychology may explain this annual fall madness..................................... ..................................................... 35

Manufacturing on the rise?

Mericle betting 279,000 square feet that it is....................................... 42

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