Category: Taxation

Evidently transparency only goes so far in the Nutter administration. It was widely reported that the budget plan adopted by Council retained the Cohen Wage Tax Rebate but delays implementation of the program for another year until 2014. Now it is itself is a bit of a farce to delay the beginning of the program until after the next election for Mayor or Council. Michael Nutter wouldn’t claim to be serving the interests of the business community by promising a big BPT cut in 2014 but doing nothing now. But now it seems that this farce is the least of our problems. Stan Shapiro recently sent an email that said It turns out that the Cohen rebate has actually been stunted, not just postponed. Under the law as it is now, the rate for low wage workers would go down to 1.5% no matter what, in yearly half percent increments… Continue reading

We all know economic growth and job creation are central to making our city a better place to live. Over the last few years, the debate about economic growth has centered on the tax reform issue. That has been unfortunate for two reasons. The first is that, while tax reform may be critical to economic growth, we have not focused enough on other means of creating new businesses and jobs. Second, progress on reforming taxes has been slow because we have focused too much on business taxes and because of sharp disagreements among political activists about whether and how fast the Business Privilege Tax (BPT) should be reduced. But a funny thing happened in a public forum a few months ago on taxes. Brett Mandel of Philadelphia Forward has been a main advocate of gradually eliminating the Business Privilege Tax (BPT) in order to stimulate economic development and job growth… Continue reading

I would like to broaden the debate about the BPT a bit and explain why, from a progressive point of view, it is not a good tax. But, before I get to that, however, let me make four preliminary points about the BPT and economic development and explain why I would not vote to reduce the BPT except as part of a package of economic development programs and tax reforms. 1. I do think that reducing business taxes is one way to create more businesses and jobs in Philadelphia. But it is not the only way or the best way. To understand why, you have to grasp that we have two economic development problems in the city. The first has to do with reviving commercial corridors. This is critical to creating jobs for our many citizens who have not attended college. Reducing the net profits part of the BPT will… Continue reading

Because of his effective proselytization on behalf of the job-killing business privilege tax—a name he invented—Brett Mandel of Philadelphia Forward is not the most well liked person in progressive circles. I myself have disagreed with him about the BPT, at least in part. (This is a subject for another time but, in brief, my view is that the BPT is an awful tax from a progressive point of view and should be eliminated. But we have to replace the revenues we get from the BPT with an alternative unless and until eliminating it–and taking other steps to revive the Philadelphia economy–brings in the revenues we need to provide essential city services.) But Brett is both a friend of mine and a progressive on practically all issues as well as being a impressive thinker and activist. He is also a Neighborhood Networks member and co-leader in our Center City group. Recently… Continue reading