Most of the debate over Gov. Tom Corbett’s budget proposal has focused on cuts to higher education. Corbett campaigned on not raising taxes and he has stuck to that pledge.

Education funding is important to the future of Pennsylvania. Young people need access to high-quality post-secondary education, and employers need skilled workers with solid educations.

Given all that, higher education should not be exempt from cost control. Colleges and universities should be expected to hold down their ever-escalating operating expenses that have caused tuition to rise faster than inflation for more than a decade. Taxpayers will continue to support higher education through the state budget, as they should, but universities must control costs.

While Corbett’s pledge to hold the line on taxes makes budget negotiations difficult in Harrisburg, a recently released report that should be factored into Corbett’s agenda will make coming budgets even harder.

The troubling report that should be part of the state budget dialogue revealed that Pennsylvania has the second-highest corporate tax rate of any state.

The nonpartisan Washington, D.C.-based research group, The Tax Foundation, ranked Pennsylvania 50th when it comes to the highest taxes on mature businesses, and 49th regarding newer companies. Only Iowa has a higher corporate tax rate — 12 percent, compared with Pennsylvania’s 9.99 percent.

If economic development and job creation are priorities for Corbett and the Legislature, it cannot be acceptable to have Pennsylvania listed at the top of the corporate tax list, which translates to the bottom of the attractive-places-to-do-business list.

The corporate income tax rate and overall tax environment are key measures in any business decision on where to start or expand operations. If Pennsylvania is going to have a solid future, Corbett and the Legislature must begin to make real progress in clearing the state’s reputation as a high-tax environment for business.

A recent headline from a Pittsburgh newspaper reporting on the national study by the Tax Foundation read, “Pa. companies carry heaviest tax burden.” This is not the kind of publicity that Corbett — or any Pennsylvanian — wants to see.

The report ranking this state at the bottom when it comes to overall tax environment did reveal a bright spot in Pennsylvania’s corporate tax structure that helps heavy manufacturers. But the overall picture is of a state that is not competitive.

Given the already tight budget situation, making the corporate tax environment more attractive will not be easy. Lowering rates should be accompanied by eliminating most loopholes and exemptions, to make up for lost tax revenue.

This year’s picture is particularly discouraging with tax revenue lagging expectations in every category, with the exception of sales tax revenue, which is running less than one percent above expectations. Overall, tax revenue is about 3.5 percent below expectations, and that will make lowering the corporate income tax rate that much more difficult.

But it must still be done, gradually, with the idea of getting Pennsylvania closer to the middle of the rankings.

If tax revenue cannot be boosted by eliminating some deductions and credits, then additional spending reductions will be required. And experience has shown that efforts to trim government spending anywhere will be fought by one constituency or another.

Despite being a difficult thing to do, reducing state corporate tax rates should be the subject of a debate in Harrisburg and across the state. Assuming the objective is to create an environment that is attractive to the national and international business community and encourages job creation, then dealing with the state’s high corporate tax rate is critical.