The Philadelphia Tax Reform Commission released its report proposing unaffordable and unfair tax cuts to solve a nonexistent problem while ignoring Philadelphia’s real problem. We urge you to reject their plan, which is based on a series of myths.
Since the turn of the century, Philadelphia has been generating jobs fast. The elimination of business taxes would add only a small number of jobs over ten years at enormous cost. New jobs are mostly created by small businesses and startup, most of which DO NOT PAY business taxes (the BIRT) in Philadelphia now. Most business taxes are paid by large, profitable firms.
Lost revenue from the elimination of business taxes would lead either to deep cuts in services or steep increases in property taxes, which would also raise rents.
By causing an increase in property taxes, the Tax Reform Commission proposals would place a greater tax burden on working people and the middle class and a greater tax burden on Black people than white people.
The Tax Reform Commission ignores the most serious economic problem Philadelphia faces: deep persistent poverty concentrated in mostly, but not only, Black and brown communities; poverty not only harms the residents of those communities but the whole city. Public policies, over many years, created the poverty amongst Philadelphia’s Black and brown communities. It’s time to reverse those policies.
If funds are available to eliminate business taxes, they should be devoted to proven, effective poverty reduction strategies that cities around the country have effectively embraced, such as
– investing in commercial corridors in low-income neighborhoods to improve streetscapes and recruit new businesses that provide good jobs for the community.
– providing low-cost capital to new businesses, especially those headed by Black people and women.
– ensuring that city jobs and contracts go to a fair share of women and Black people.
– expanding services fairly to all Philadelphia communities.