Monday, July 09, 2007

A Philly Pity Party

I have to comment on one more item from yesterday’s Inquirer.

I don’t have too many “rules of thumb” when doing this, but I suppose one is to consider everyday letter writers, opinion columnists and non-journo types as “civilians” at this site and thus leave them alone unless they take direct aim at an issue or political candidate for which I have advocated. But I’m going to break that rule for a minute.

I’ll provide just a bit of background; the Inquirer just loves to run letters and Op-Ed pieces about how screwed up Philadelphia is because it isn’t more business friendly, reflected in part by its odious city wage tax – as noted here, the resident rate is about 4.26 percent and the non-resident rate is 3.75 percent. And by the way, I am no fan of it either, having paid it for years along with my wife before circumstances changed.

With all of this in mind, here is a letter to the editor from Mary Barr Mann that the Inquirer published yesterday…

Yo, the one thing I really need you to do is . . .

. . . bring me back to Philadelphia. I know this sounds rather self-serving, what with all the pressing crises of the city - including poverty, crime, and education. But I represent the vast Philadelphia diaspora - the many former inhabitants who long for Philadelphia, who spend hours a week on Philly.com and phillyblog and read the Business Journal and City Paper on line. We miss our neighborhoods, our families and our soft pretzels. We want to come back, but something is missing: jobs.

Almost seven years ago, I married a man who lives and works in North Jersey. His technology-based firm is thriving in the New York area, with many clients ranging in geographic location from Garden City, Long Island, to Parsippany, N.J. How many clients do they have in the Philadelphia area? One. In Blue Bell.

Philadelphia needs to significantly lower its wage and business taxes and aggressively work to attract and grow new businesses. Some might argue that there is growth on the Route 202 corridor and in other suburbs, but without a vibrant economic engine at the center, the Philadelphia region is lagging behind metro areas like New York and Boston. Jobs will bring new residents, new income and new life to the city - both at its center and in the neighborhoods.
So why does all of this sound fake somehow?

Well, am I to assume that Ms. Barr Mann would return to this area from North Jersey on a somewhat regular basis to enjoy the benefits of “a vibrant economic engine” (if that isn’t Chamber of Commerce boilerplate, I don’t know what is) if the city created new jobs? Am I to assume that she misses living in Philadelphia while she is currently residing in North Jersey with her husband (a formidable commute from one place to the other, by the way, mass transit or no) and tax cuts would somehow create a job in nearby Blue Bell for her old man?

Well, for her information, the city wage tax already was cut to its current amounts from 4.54 percent for residents and 3.96 percent for non-residents (as noted here – I don’t remember exactly what we had to pay, but I can guarantee you that it was more than that). And Michael Nutter, the presumptive next mayor, is an ardent opponent of the wage tax, so you can expect further cuts once he takes office.

Also, if you read the post from lawmummy here, you’ll find he (?) makes an excellent point. People who leave Philadelphia do so to find better schools elsewhere and lower insurance, to say nothing of crime. Overwhelmingly, they don’t do it for the wage tax. Also, the wage tax pays for city services like police, fire and garbage collection. In many parts of the country, while they don't have a wage tax, those services are paid out of other (and sometimes higher) property taxes, convenience and sin taxes, licenses and fees. Get ready for that eventuality in Philadelphia without the wage tax.

Think about all of this while you’re eating your hot pretzel, Ms. Barr Mann.

2 comments:

Mary Mann said...

Dear Doomsayer:
It's rather late to respond but I just found your post through a Google search.

I did not mean to trash Philadelphia or imply that it is irreparably screwed up (and I don't think my letter did that -- it just pointed to policy changes that could aid in the continued improvement of Philadelphia).

Any, yes, my situation is real (not fake). My story is real. I worked for the Center City District for three years and I am a big proponent of Philadelphia. Due to the good work mainly of the CCD and Paul Levy (and with the help of the continued lowering of the wage tax), office jobs are finally growing in Center City. But the truth is that Philadelphia has lagged behind other major cities in job growth. The CCD identified 2.5%, I belive, as the tipping point where wage tax reduction would lead to real gains in business recruitment and retention. Long story short, I know of what I speak. I have spent time studying it. I work in economic development.

I did not leave Philadelphia for better schools. My son attends a public school in Maplewood that is majority African-American and where half the students qualify for free lunches because they live below the poverty level. I did not leave because of crime. I live in a town that borders Newark, NJ and I work in Newark, NJ and drive through the scene of the 1967 riots to and from work each day. I believe in cities and I'm not interested in living somewhere safe and vanilla. I believe in the future of Philadelphia and I'd like to see real, progressive policy decisions that insure its continued improvement and ultimate success. Continued tax reform is a part of that.

By the way, my husband is looking at a long-range plan to work for an engineering/manufacturing firm in Delaware County. That should get us back to Philadelphia. But we can't afford the cut in income just yet. Times are tough.

Not fake. Very real. Chew on that.
Yours,
Mary Mann

doomsy said...

Implying that your situation was fake was not appropriate, and I apologize for that. However, I've read conflicting information on lowering of the wage tax and generation of job growth - let's just say my experience is different from yours.

Also, past Philadelphia administrations did not have the benefit of gaming revenue to help offset tax rates throughout the state, including Philadelphia.