"When we examined Pennsylvania's taxes, we found that thestate's business burden is similar to that of other states," saysStephen Herzenberg, economist and executive director of KRC, anindependent research company.

According to the KRC comparisons, Pennsylvania businesses paid$940 per capita in state and local taxes in 1999, compared with the$962 per capita average paid by business among all states. KRCconcedes that makes Pennsylvania's business taxes 17th highest in a50-state ranking.

Eileen McNulty, co-author of the KRC study and former secretaryof the Pennsylvania Department of Revenue, urges state legislatorsto look to factors other than taxes to spur economic development,specifically the "quality of education, workforce skills, andinfrastructure."

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