Today's Daily News provided a useful breakdown of the city's oft-maligned Business Privilege Tax (link added). Most city residents will never have to pay this tax and therefore feel that they have little stake in the debate over its existence.
Nothing could be farther from the truth.
The many sides of the Business Privilege Tax debate ultimately come down to how government can influence the economic situation of the city's residents, visitors, business owners and workers.
BPT cut proponents claim that the tax is a major reason that businesses are hesitant to come to Philadelphia and why entrepreneurs prefer to start businesses outside of the city limits. They claims that decreasing the tax and making changes in how it is assessed would cause more businesses to open up and create new jobs. New business means more property tax revenue; new jobs means more wage tax revenue.
Those who oppose BPT cuts say that the loss in the revenue from cutting the BPT would hamper the government's ability to make the city a more attractive place because of cuts to services, infrastructure upkeep and a continued inability to fund education and transit.
Even if you're not a business owner, you could be a potential employee for one of these new businesses or you could simply be a resident who is concerned with the city's ability to perform basic services.
We want to hear from everyone. If you are the owner of a small or large business in Philadelphia or outside of it, did the BPT affect your decision about where to locate or were there other stronger considerations? Tell us your story.
If you are thinking of starting your own small business, have you been thinking about the BPT yet?
We're less interested in your opinion about whether BPT reductions will/will not bring in more business, will/will not lead to an overall decrease in revenue, what you think business look for when making locational decisions (unless, as I said, you own or are starting a business). We'll leave those econometric studies and statistics to the experts... who can twist them to back any arguments anyway. We won't delete those opinions but we're really not looking for them here.
No, we want your story. How are personally affected by the BPT or by the services provided for (and therefore in some measure funded by) the BPT? Sound off in the comments.
Comments (4)
PBT Is a death tax for small business
Posted by Anonymous | January 23, 2009 10:11 AM
I am moving out of Philadelphia May 1 for three reasons:
19% real estate tax hike
1% sales tax hike
and...because I want to start a business...the business PRIVILEGE???? Tax!
Posted by Anonymous | March 31, 2009 9:37 PM
Grossly unfair Business taxes, wage taxes that are unheard of in most of the rest of the country, climbing sales taxes and double digit real estate taxe increases are driving people out of the city. Today's Metro listed Philly as the highest tax rate city in the entire country. And we get NOTHING in return for this investment...failed schools, crumbling infrastructure and horrific apathy and politics that keep well-planned development from turning this city into a jewel.
Posted by Anonymous | March 31, 2009 9:45 PM
The BPT should remain. There is no demonstrative evidence showing that removal of the tax will bring in more bsns. There is strong evidence that it will not create any jobs. Exxon is a perfect example. Making more that a billion $'s in profit from the oil price gauging they are planning to lay off workers to show greater profitability. Removal of the tax guarantees nothing. Those who are currently in the city will not employ more workers but would more than likely use it the way Exxon does. Those who come in, even if they brought some jobs(???) would not offset the loss of the tax we are currently collecting.
Posted by M. Shikomba | March 31, 2009 10:31 PM