There's a great discussion of everyone's favorite tax - to talk about, at least - the Business Privilege Tax, specifically, the gross receipts portion of the BPT.
Before we make a decision on whether to cut business taxes, we should know how much each business actually pays to the City each year. (As we know from the Vince Fumo property tax fiasco, how much each person pays in property taxes is a public record.) Is a small businessperson actually saving enough money to re-invest in their business, or to hire additional workers? Without having real statistics, how would we know?
So, before we decide to cut business taxes or not, we should know how much every business- from big old Comcast to the smallest person just opening up shop, pays in taxes to the City each year. This may shock you, but under the previous Mayor, the Commerce Department generally refused to provide these numbers. I guess they thought it was their business only. But, with a new Mayor focused on transparency and the like, I am hoping things change.
The debate over the actual cutting of the taxes is going on fast and furiously in the comments to that post, with an appearance by the bill's sponsor, Councilman Wilson Goode.
Comments (7)
Actually, within city government even the Commerce Department does not have access to tax info on a business by business basis - only the Revenue Department does. I think in the past Revenue did not share that information in an effort to protect the competitive advantage of each business, large or small. And frankly, I'm less interested in how much individual businesses pay and more interested in fixing the problems experienced by the categories of businesses(i.e. sole proprietorships, etc.) most disadvantaged by the current system.
Posted by anonymous | February 7, 2008 11:44 AM
That's exactly the wrong kind of question he should be asking and is a great example of the narrowminded thinking that thwarts economic development here. The issue isn't who pays what, it's whether the tax code is inhibiting growth. Will lowering taxes generate economic growth and income for the city and its residents? the answer to that question is not in whp pays what now, or what they intend to do with it. Businesses make their decisions on a marginal basis. It's not whether that additional $100k will be used ot create another job. A lower rate would increase the ROI of certain projects or businesses. You'd have to ask each company to submit their projects and analyses and even then you wouldn't account for companies that don't move here or don't start up here.
Posted by Andre | February 7, 2008 12:31 PM
Why is this even being debated here?
The Next Mayor isn't child's play in the world of local politics.
The Next Mayor opens it self to everyone without a fear of censorship over a simple opinion or thought.
The Next Mayor typically offers substance and fairness in its coverage of what shakes and moves our city in Harrisburg, Washingtion, & City Hall.
The bill presented by Goode is for eliminating the gross receipts by 2015. Any understanding of economics, esp. local, you would understand this is a win for the city. The entirety of the BPT represents around 9% of Philadelphia's budget. The GR of it represents even less the actual tax itself. When you also factor in that this portion of the tax isn't being thrown out all at once but over the course of 7 years, it becomes a non-issue. The BPT itself will grow due added business into our city.
Am I anti-taxes?
Besides the wage tax and the BPT, I'm not a big fan of eliminating or deeply lowering taxes. On the federal level I believe nearly all tax cuts should be eradicated and that taxes on those making over 200 G's should be raised.
Either way this bill will pass and the city will be better for it.
Posted by Patricio | February 7, 2008 1:54 PM
Why is this even being debated here?
The Next Mayor isn't child's play in the world of local politics.
The Next Mayor opens it self to everyone without a fear of censorship over a simple opinion or thought.
The Next Mayor typically offers substance and fairness in its coverage of what shakes and moves our city in Harrisburg, Washingtion, & City Hall.
The bill presented by Goode is for eliminating the gross receipts by 2015. Any understanding of economics, esp. local, you would understand this is a win for the city. The entirety of the BPT represents around 9% of Philadelphia's budget. The GR of it represents even less the actual tax itself. When you also factor in that this portion of the tax isn't being thrown out all at once but over the course of 7 years, it becomes a non-issue. The BPT itself will grow due added business into our city.
Am I anti-taxes?
Besides the wage tax and the BPT, I'm not a big fan of eliminating or deeply lowering taxes. On the federal level I believe nearly all tax cuts should be eradicated and that taxes on those making over 200 G's should be raised.
Either way this bill will pass and the city will be better for it.
Posted by Patricio | February 7, 2008 1:54 PM
Dan UA's being an Asshat. He needs to move to Cuba or something.
Posted by Anonymous | February 8, 2008 1:37 AM
what is an asshat, and where can i buy one?
Posted by Ray Murphy | February 8, 2008 3:18 PM
So much for raising the level of discourse...
I've warned my mom before about making such comments.
Posted by Dan P. | February 8, 2008 3:34 PM