The knives are out for a Pennsylvania business tax that claims the distinction of being among the highest in the nation. But the would-be slashers are still debating just far it should fall and how to make up the lost revenue.

The Allegheny Conference on Community Development yesterday began a series of briefings around the region to argue the state should seize the opportunity of a year-end surplus to lower the state's corporate net income tax from 9.99 percent to 8.5 percent, matching the level the last time Pennsylvania's job growth rate mirrored that of the nation.

But the proposal raised little excitement among other parties advocating business tax cuts.

Both Gov. Ed Rendell and a group of House Republicans have separately called for steeper slices off the net income tax. The governor's office wants the tax trimmed to 7.9 percent, while the GOP lawmakers have settled on 6.99 percent.

"I applaud the conference for pushing for tax relief, but they are not being bold enough," said state Rep. Mike Turzai, R-Bradford Woods.

Meanwhile, the governor seems more inclined to use any surplus to help the cash-strapped Medicaid system. The administration is proposing to fund business tax relief by closing tax loopholes, said Steve Kniley, press secretary for the Department of Revenue.

All three groups also support the already scheduled phase-out of the state's Capital Stock and Franchise Tax, although the timing has been under discussion. That tax on essentially a company's net worth must be paid regardless if a company is profitable or not.

The Allegheny Conference did offer up some statistics to bolster the argument that the taxes are not good for business. According to its research, job creation rose every time in the past three decades that the corporate net income tax dropped.

It also said that the state could have had 300,000 more jobs today if it were creating jobs at the same rate as when the tax was still 8.5 percent, which is where it stood before former Gov. Bob Casey and state lawmakers raised it to 12.25 percent in 1991.