Councilmember Domb proposing major wage and business tax cuts (Philadelphia: real estate, houses)

[bridge12]

https://whyy.org/articles/philly-pol...t-city-budget/

Rumor is that Kenney is also going to be proposing wage and business tax cuts, though probably not as deep as Domb's proposal. He's probably reaching so that a compromise with smaller cuts seems more reasonable.

Thoughts?

[thedirtypirate]

Well they aren't drastic, but in the right direction. Need to get that Vanguard tower to anchor the Schulykill train yard redevelopment.



More importantly though, it makes the prospect of starting a business or opening a smaller office more appealing.

[cpomp]

Agree with above. It is certainly a step in the right direction, and Domb for Mayor.

But of course there is mention of pushback from progressives... And leaving corporations out of this (which we still need more of), the idea of startups, satellite offices, small businesses, etc. having a more lucrative healthy environment is what Philadelphia certainly needs, but that idea goes over most of their heads (I don't get it).

[Angus215]

A reduction to just under 3% over a period of 20 years? Not very ambitious.

[KansastoSouthphilly]

Originally Posted by cpomp

Agree with above. It is certainly a step in the right direction, and Domb for Mayor.

But of course there is mention of pushback from progressives... And leaving corporations out of this (which we still need more of), the idea of startups, satellite offices, small businesses, etc. having a more lucrative healthy environment is what Philadelphia certainly needs, but that idea goes over most of their heads (I don't get it).

Philly "progressives" are incapable of realizing that businesses will behave rationally and generally seek to avoid added extra tax liability. Companies pretty much have access to the same talent pool in Conshy as they do in center city.

It seems also seems like a lot of them view poverty as static and are only concerned with alleviating the symptoms of poverty and not actually helping people get out of poverty by providing jobs, or investing in increasing and strengthening the tax base. They are obsessed with this idea that there all these sinister wealthy people non paying their fair share in Philadelphia. However, in Philadelphia, that is really not the case. The poor here pay little wage tax, little property tax, no SIT, no BIRT, no NPT or other business taxes. In fact the homestead exemption was designed in a way that the full value of many poor peoples houses are exempt from real estate tax. They try to latch on to the national narrative about increasing higher end tax rates and wanting higher corporate tax rates; however that is essentially trying to put a round peg in a square hole here. We absolutely need more wealthy people in the city and we shouldn't sneer at attempts to attract them, otherwise we will have no way to pay for these programs that progressives want.

[cpomp]

Originally Posted by KansastoSouthphilly

Philly "progressives" are incapable of realizing that businesses will behave rationally and generally seek to avoid added extra tax liability. Companies pretty much have access to the same talent pool in Conshy as they do in center city.

It seems also seems like a lot of them view poverty as static and are only concerned with alleviating the symptoms of poverty and not actually helping people get out of poverty by providing jobs, or investing in increasing and strengthening the tax base. They are obsessed with this idea that there all these sinister wealthy people non paying their fair share in Philadelphia. However, in Philadelphia, that is really not the case. The poor here pay little wage tax, little property tax, no SIT, no BIRT, no NPT or other business taxes. In fact the homestead exemption was designed in a way that the full value of many poor peoples houses are exempt from real estate tax. They try to latch on to the national narrative about increasing higher end tax rates and wanting higher corporate tax rates; however that is essentially trying to put a round peg in a square hole here. We absolutely need more wealthy people in the city and we shouldn't sneer at attempts to attract them, otherwise we will have no way to pay for these programs that progressives want.

Agree 100%. I see it everyday in a Philadelphia Policy FB group. A few people view this proposal as a corporate handout at the expense of the poor, I was like "What are you even talking about?!"

We need to end the extreme one-sided thinking, and realize that jobs and a competitive business environment are extremely important for the health of the city, now more than ever. I see some instances of the progressive agenda that make sense, but overall, it seems to be more of a hindrance than a benefit.


Unrelated to wage taxes, but somehow New Yorkers moving here became the focus of that discussion. Some proclaimed progressives think that the new luxury construction will house wealthy New Yorkers fleeing the city, I don't know how people conclude this, and I ask for receipts and the backtracking begins. Obviously there are wealthy people moving to Philadelphia (very important), but the majority of New Yorkers I know moving here are upper middle class looking for a better COL/QOL, yet they are met with resistance from these kooks. I guess if you make over a certain income you are considered an evil elite?.. I don't get it, and you can't reason with most of them...

These kooks also weren't impressed when I shared an article stating there are over 10,000 residential units under construction in the city. I don't see how that could be anything but excellent news!

[thedirtypirate]

Originally Posted by KansastoSouthphilly

Philly "progressives" are incapable of realizing that businesses will behave rationally and generally seek to avoid added extra tax liability. Companies pretty much have access to the same talent pool in Conshy as they do in center city.

It seems also seems like a lot of them view poverty as static and are only concerned with alleviating the symptoms of poverty and not actually helping people get out of poverty by providing jobs, or investing in increasing and strengthening the tax base. They are obsessed with this idea that there all these sinister wealthy people non paying their fair share in Philadelphia. However, in Philadelphia, that is really not the case. The poor here pay little wage tax, little property tax, no SIT, no BIRT, no NPT or other business taxes. In fact the homestead exemption was designed in a way that the full value of many poor peoples houses are exempt from real estate tax. They try to latch on to the national narrative about increasing higher end tax rates and wanting higher corporate tax rates; however that is essentially trying to put a round peg in a square hole here. We absolutely need more wealthy people in the city and we shouldn't sneer at attempts to attract them, otherwise we will have no way to pay for these programs that progressives want.

I agree, it's a joke. My gf's friend, a woman who proclaims she's very liberal, came over the other day and we were sitting on our deck looking at the skyline. She goes "Ugh that new building is awful! Who has the money to move in there? Philadelphia is turning into NYC!". Note this is a person who lives in the suburbs and only comes to Philly to enjoy the amenities and what not.

I just thought it was such an arrogant and entitled thing to say. For one thing, if the city just enacted smart urban policy that enabled the development of enough units on vacant and under used land, we could divert an affordability crisis before it even truly begins (it will never ever be like SF) . Two, new residents bring new money. Money that goes to the schools, to the roads, to everything. The backwards stupidity of some people to be so selfish makes me very annoyed. I want to call it 'Starving Artist Syndrome'. "The schools in my neighborhood need to stay bad so I can continue to afford my art studio and rent".

You hit the nail on the head about the 'National Narrative'. Helen Gym spends a lot of time retweeting Alexandria Ocasio-Cortez as if NYC's over abundance of professional jobs and wealth is somehow Philadelphia's problem when we don't have enough within the city to begin with.

I saw someone share this the other day and I laughed.



Half the super 'progressives' in Philadelphia are really just urbanized conservatives.

[newmarlig]

I want a cap on property taxes for seniors.

[Angus215]

Originally Posted by newmarlig

I want a cap on property taxes for seniors.

I'm pretty sure that would be illegal, but they could certainly put a cap on property tax increases for everyone. I would expect the opposite to happen, however, and for the city to plug the hole created by the loss of suburban wage taxes with higher property taxes. While jobs can pick up and move, buildings can't.

[KansastoSouthphilly]

Originally Posted by cpomp

Agree 100%. I see it everyday in a Philadelphia Policy FB group. A few people view this proposal as a corporate handout at the expense of the poor, I was like "What are you even talking about?!"

We need to end the extreme one-sided thinking, and realize that jobs and a competitive business environment are extremely important for the health of the city, now more than ever. I see some instances of the progressive agenda that make sense, but overall, it seems to be more of a hindrance than a benefit.


Unrelated to wage taxes, but somehow New Yorkers moving here became the focus of that discussion. Some proclaimed progressives think that the new luxury construction will house wealthy New Yorkers fleeing the city, I don't know how people conclude this, and I ask for receipts and the backtracking begins. Obviously there are wealthy people moving to Philadelphia (very important), but the majority of New Yorkers I know moving here are upper middle class looking for a better COL/QOL, yet they are met with resistance from these kooks. I guess if you make over a certain income you are considered an evil elite?.. I don't get it, and you can't reason with most of them...

These kooks also weren't impressed when I shared an article stating there are over 10,000 residential units under construction in the city. I don't see how that could be anything but excellent news!

Yeah I lurk in that group but never post. I am honestly scared to post because I worry many of the progressives would come after me professionally just for disagreeing with them. The page seems to be urbanists arguing with actual communists advocating for such extreme policies that aren't even worth discussing. They are so obsessed with the idea that developers are greedy (duh!) when the point should be that developers are rational and self interested; they engage in predictable behavior and policy can be made to make them do things we want like adding to the housing supply, removing blight etc. Their inability to weigh pros and cons is bizarre. The rhetoric they use is so hateful and nasty it often makes me sick to my stomach. They love caricatures and don't think of Developers, New Yorkers, or anybody that makes more than $70k per year as real people.