Day: April 27, 2007

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