Category: Philadelphia Budget

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It’s Time to Reinstate the Philadelphia Wealth Tax

  By PA Budget and Policy Center, Philadelphia, Philadelphia Budget, Philadelphia Taxes, Policy reports, Wealth Tax

Wealth inequality in America, in Pennsylvania, and in our region has been growing strikingly since the late 1970s. And wealth inequality continues to increase during the pandemic. The dramatic rise in wealth inequality threatens economic growth, reduces the tax revenues needed to fund vital public institutions, and undermines our democracy. To counter wealth inequality and to raise the revenue needed to fund programs that support the well-being of working people in our city, we call for the reinstitution of a wealth tax of 4 mill or .4% of the value of intangible wealth in Philadelphia. We estimate that this tax would raise more than $200 million per year in revenues for the city, which would provide the funds necessary to create and / or expand programs that would enable us to break down the barriers of class, race, and gender that stand in the way of opportunity for so many… Continue reading

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AVI Without Tears

  By Philadelphia, Philadelphia Budget, Taxation

I have an op-ed in today’s Daily News about AVI. I think the argument there is correct, but it is highly compressed. I’ve tried to set out my argument at a little greater length here. (Note that in the op-ed and in this piece I made a mistake and said that AVI shifts the tax burden from residential to commercial property. It does the opposite. I’ve corrected it here. Councilman Green’s proposals minimize the shift.) So much has gone wrong in the city’s move to the Actual Value Initiative (AVI), that many people are fearful about its consequence. And one of the things that has gone wrong is that people who know better are playing on this fear for their political purposes, I think the fear is over blown. AVI is a good thing if it is implemented properly and I think it can be implemented properly this year. Continue reading

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In Philly, We Need Transparency in Criticism As Well As Budgeting

  By Budget, Philadelphia, Philadelphia Budget, Taxation

Some critics of Mayor Michael Nutter are calling him out for hiding a real estate tax in his new budget since the budget proposes that after the new market based system of setting property values is put in place, tax rates will be set so that the city takes in an additional $90 million in real estate tax receipts. There is a just a little bit of truth in the criticism. But most of it is really just hogwash. Continue reading

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The Republican Gang of Six and the PA State Budget

  By Federal Budget, Pennsylvania, Philadelphia Budget

In Pennsylvania today, we face an budget crisis of huge proportions. In the face of drastically reduced revenues due to the recession, the state faces a enormous deficit. And there are only two ways to deal with it. The Republicans in the State Senate have proposed massive reductions in state spending that would had devastating effects on education and health care, particularly for children. The Democrats, lead by Governor Rendell, have proposed temporarily raising the state income tax, which is one of the lowest in the country. The state budget crisis is all about the Republicans in Pennsylvania being captured by the extreme anti-tax, anti-government ideology that has dominated the Republican party in the South and West for years but is relatively new here. These ain’t your grandfather’s Republicans. And, frankly, when Republicans control the Senate by ten seats, I’m not sure there is all that much we can do… Continue reading

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A three sided budget fight

  By Philadelphia, Philadelphia Budget

Progressive forces won an important victory by building support for the preservation of essential services even if this requires a tax increase. This was a incredibly beautiful and wide ranging struggle with many people playing a role. And Mayor Nutter deserves credit for recognizing that the citizens of this city are willing to bear higher taxes temporarily in order to save services that are so important to us. Now, however, we have to recognize that fight continues on three sides. On one side, we want to make the tax increases as progressive as possible. Many of us have concerns about the regressivity of the sales taxes and the danger that the property tax increase will fall too heavily on the poor and working people if it goes into effect without the implementation of a homestead exemption and a broad based and fair revision of property assessments. On a second side,… Continue reading