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Keep Our Taxes the Same! Save the City!
So, Philadelphians are overwhelmingly against this budget cut. And, because they generally consider services a priority over tax cuts, and understand that in a time of recession, starving the City of revenue isn’t a good idea, the people of Philadelphia overwhelmingly are for using at least some of the gaming revenue for services instead, with only 10% of Philadelphia preferring to keep the gaming revenue for tax cuts. And by a six to one margin- 66% to 11%- Philadelphians thought services were more important than low taxes.
This all shouldn’t be too much of a surprise. Just last year, the Pennsylvania Economy League and Temple conducted a poll where, when asked about taxes v. services, 38% of people said they would rather more taxes if it meant more services, 45% would prefer taxes and services stay the same, and… just 10% (sound familiar?) would prefer lower taxes if it mean less in services. So, the poll is not so much a surprise, as it is a confirmation.
Let’s review the proposal for using some of our incoming gaming revenue:
Courtesy of the state, everyone who pays wage taxes in the city will be getting cuts next year, from about 100 million dollars in cash to the City. (Consider it a gift from the grandma who is spending her social security check at the Casino in Chester, with a couple cents trickling back to you. It also is coming, regardless of what happens with Foxwoods and Sugarhouse.) The suburbs, meanwhile, will see their property taxes reduced.
So, next year (and every year), we have what is basically half of our projected deficit. The city could instantly halve that deficit by simply saying that they were going to- temporarily or permanently- raise wage taxes by roughly the same amount the Casino revenues will drop them by.
Let’s be clear, because I have already been asked this question a couple of times: This is not only reasonable, and not only supported by an overwhelming majority of Philadelphians, but it is- without question- perfectly legal. The Pennsylvania gaming law does not take away the power of the City and other municipalities to tax. Instead, the law simply sets aside money for tax reductions. (The most relevant sections of the law are 4 Pa.C.S.A. § 1408(e)-1409). The only thing the City could possibly not do is say explicitly that they were taking money from the gaming fund, and therefore, there would be no tax decrease, and end there. But, Council can certainly still pass a law raising the wage tax by what they see fit, and then the gaming revenue tax reductions would just lower it back down. The end result is, our taxes stay the same, and many of our services can be saved.
(As I said to a reporter about the legality of it, put it another way: in the rest of the state, the money is going towards lowering property taxes. Many municipalities will continue to tax property values as they see fit.)
Again: Just ten percent of Philadelphians think that we shouldn’t tap the incoming revenue stream to stave off some of these budget cuts. Ten percent.
Yet to this point, City Council has largely punted. Most have laid low, after Mayor Nutter took them behind closed doors and scared the living crap out of them, and told them the City wouldn’t make payroll. And so, budget cuts were promptly shoved through, with only a small number of Councilpeople responding. Well, now they see these numbers, right? Now is time for them to step up, represent their constituents, play heroes, and make this happen.
And, now it is time for Michael Nutter to show us that being a populist and a being a leader are not mutually exclusive. We elected him because we believed in him. Now is not the time to abandon his promises, and to irreparably harm our City.
Keep our taxes the same. Save the City.


Council has a wage tax bill before it
If Council wanted to get off the dime and follow the wishes of its constituents, it has a bill in front of it right now that it could use to raise the money needed to avoid the closings. Bill 080855 was introduced on behalf of the Mayor in November to effectuate his proposed tax cut freeze. But his proposed tax cut freeze really isn't a tax cut freeze because his bill keeps the big cut that went into effect July 1 from 4.219% to 3.98%. It then reduces the rate again on January 1, 2009, July 1, 2009 and every July 1 succeeding through 2014. These later reductions are the ones allegedly required as a result of the City's receipt of casino revenues.
This bill is up for a vote on Thursday of this week. It could be amended on the floor to increase rates the miniscule amount needed to pay for keeping the libraries open and a slight amount beyond that to keep the pools open.
Poll or no poll, it's a travesty to close community libraries over a sum as insignificant as $8 million in a $4 billion dollar budget. The rate increase needed to raise that sum would be .0033, or 33 thousandths of one percent. If you earn $50,000 a year, you would pay $16.50 of that to keep the libraries open. If you earn $100,000, the increase would cost you $33 and you probably itemize on your federal taxes, so you could deduct the $33 bucks and it would cost you less. Libraries equal civilization to me. How can we start shutting down our civilization over a few cups of coffee?
"The city could instantly
"The city could instantly halve that deficit by simply saying that they were going to- temporarily or permanently- raise wage taxes by roughly the same amount the Casino revenues will drop them by."
Oh, Dan, come on man. You're a smart guy. I'm surprised you said this.
Agreed
This would be a great recipe for some really nasty primary campaign attack pieces in the 2011 council races.
Then, we would all get to see how much Philadelphians appreciate and support real tax increases, as opposed to the theoretical kind that are coupled to preventing service cuts and/or layoffs.