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 we had an interesting discussion in City Council chambers while listening to Council split the difference on BPT reductions.
Brett leaned over to me and said that what we really need to fix the tax system in Philadelphia is an amendment to the uniformity clause that prohibits the state or city from enacting progressive taxation laws. (You see, I told you he was a progressive.)
We quickly agreed that a progressive wage tax would be a better way of helping people with low and moderate incomes than the Cohen Working Families Wage Tax Rebate. In fact, we have agreed in the past that our tax system would be more efficient and fairer if we swapped our wage tax for an income tax that progressively taxes dividends, interest and the profits of unincorporated businesses bas well as wages. If we piggybacked a personal income tax on the state income tax, collection costs would be almost nil and, if we chose to do so, we could also easily adapt a local variant of a State Earned Income Tax.
(With a progressive wage or income tax impossible, Brett thinks we are better off with lower wage taxes for everyone while I support the Cohen Working Families Tax Rebate. Brett points to the inefficiency of a rebate that won’t get to everyone who needs it. I point to the inequity of a flat wage tax. We are, frankly, both right although we emphasize different sides of the matter.)
Then Brett surprised by saying that if we were to end the uniformity clause, we could also tax commercial property at higher rates than residential property. This raises a whole lot of interesting issues which I will write about tomorrow.