Tax Reform Update -- 4,000 Faxes Say No To Budget Chaos, Yes To Tax Reform

While chaos surrounding the budget/tax reform debate consumes City Hall, the people continue their call for tax reform, firms continue to bypass Philadelphia, and the city awaits the fallout from political brinksmanship.

FAX FLOOD:  4,000 FOR PHILADELPHIA FORWARD

While the politicians squabble, the people continue to speak out loud and clear for tax reform.  Let's put this incredible outpouring of public voice in perspective:

  • HOW MUCH?  The fax deluge (4,000 faxes to the Mayor and 17 members of City Council) represents more than 72,000 messages to City Hall.
  • HOW LONG?  Stretched end to end, these faxes would run nearly the entire 10-mile length of the Broad Street Subway from Fern Rock to Pattison. 
  • HOW HIGH?  Stacked, up, the faxes would tower more than 24 feet tall -- that's taller than the walk-through heart at the Franklin Institute (including the Aorta). 
  • HOW HEAVY?  The pile would weigh more than a 300-pound Eagles offensive lineman. 
  • HOW ABOUT THAT!  No matter how you measure it, that is a huge display of public voice that once again raises the question, IF OUR ELECTED OFFICIALS ARE NOT LISTENING TO US, TO WHOM ARE THEY LISTENING? 

HIGH TAXES COST PHILADELPHIA ANOTHER MAJOR FIRM

As reported in this week's Philadelphia Business Journal, a major Maryland-based firm that is developing what it hopes will become the nation's first FDA-approved colon cancer vaccine decided not to come to Philadelphia because of the oppressive Wage Tax.  The article quotes the firm's top official saying of the decision to reject Philadelphia, "The problem is you get hit with that three-and-a-half percent [wage] tax nonsense."  The firm moved to the Princeton, NJ area.  (Click here to read the full article.)
 
COUNCIL PLANS (ANOTHER) FINAL VOTE ON BUDGET/TAX REFORM FOR JUNE 21ST
 
City Council will meet on Monday, June 21st at 10:00 am for their final scheduled session of the spring.  (The session had originally been scheduled for June 17, but was pushed back due to an advertising snafu.)  At this rescheduled session, City Council is expected to vote on final passage of the city budget and the tax reform bills that are in play. 
 
SO...WHAT HAPPENS NEXT?
 
It is not so clear what happens next. 
  • If the Mayor and Council can agree on a compromise, amended versions of the budget and tax reform bills could be passed and signed into law before July 1st. 
  • If City Council passes the budget and tax reform compromise package that was reported out of committee last week, the city would have a new budget along with significant tax reform, but the resulting plan for raising and spending money for the next five years would need to be adjusted to close gaps between revenues and expenses in the later years of the plan. 
  • If the Mayor vetos the tax bills (and the veto is sustained by the minority on City Council), he could make cuts in the budget unilaterally to make ends meet and then sign the budget into law.  INTERESTINGLY, DUE TO RELATIONSHIPS BETWEEN PENDING TAX BILLS AND CURRENT TAX LAWS, THE HOLE IN THE FIVE-YEAR PLAN TO BE FILLED BY THE MAYOR WOULD BE LARGER IF HE VETOS THE TAX REFORM BILLS.  DON'T LET ANYONE FOOL YOU...AT THIS POINT, VETOING THE TAX REFORM BILLS WOULD HAVE A GREATER IMPACT ON THE BUDGET THAN SIGNING THEM INTO LAW.  ANY VETO SHOULD BE SEEN FOR WHAT IT IS (A POWER PLAY) AND FOR WHAT IT IS NOT (AN ATTEMPT TO PROTECT THE BUDGET).  
  • If the Mayor vetos the budget, the city will be unable to pay its bills or pay employee salaries after July 1 until the stalemate ends with a new compromise budget. 

At this point, there are too many variables to make any predictions about what will occur or how any actions will affect tax reform or the future of the city.

WHO STANDS IN THE WAY OF TAX REFORM? 
MEET THE STUBBORN SIX
 
The following City Council members continue to stand against tax reform.  Let them know that you want them to cast votes for a budget that includes significant tax reform.  Call each one and make them understand that there will be consequences if they cast the vote that defeats tax reform. 
 
District 3 - The Honorable Jannie L. Blackwell - 215.686.3418

District 5 - The Honorable Darrell L. Clarke - 215.686.3442

District 7 - The Honorable Richard Mariano - 215.686.3448

District 8 - The Honorable Donna Reed Miller - 215.686.3424

At-large - The Honorable Juan F. Ramos - 215.686.3420

At-large - The Honorable Blondell Reynolds Brown - 215.686.3438 

 

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