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From YouTube: Committee on Legislative Oversight 2-21-2018
Description
The Legislative Oversight Committee of the Council of the City of Philadelphia held a Public Hearing on Wednesday, February 21, 2018 to hear testimony on the following items:
171118 An Ordinance amending Chapter 10-800 of The Philadelphia Code, entitled "Safety," by repealing certain provisions of Section 10-806 (relating to construction of reviewing stands) and amending other provisions of said Section, all under certain terms and conditions.
171119 An Ordinance amending Chapter 9-400 of The Philadelphia Code, entitled "Carriers," by repealing certain provisions relating to motor buses, all under certain terms and conditions.
171120 An Ordinance amending Chapter 9-700 of The Philadelphia Code, entitled "Amusement Businesses," by repealing Section 9-704 (relating to motion pictures), all under certain terms and conditions.
171121 An Ordinance amending Chapter 9-600 of The Philadelphia Code, entitled "Service and Other Businesses," by repealing certain provisions related to refuse collection, all under certain terms and conditions.
171122 An Ordinance amending Chapter 10-800 of The Philadelphia Code, entitled "Safety," by repealing certain provisions relating to excavations and obstructions, all under certain terms and conditions.
171123 An Ordinance amending Chapter 9-700 of The Philadelphia Code, entitled "Amusement Businesses," by repealing Section 9-708 (relating to compulsory vehicular amusement device insurance), all under certain terms and conditions.
171124 An Ordinance amending Chapter 9-600 of The Philadelphia Code, entitled "Services and Other Businesses," by repealing Section 9-630 (relating to sale of used cars), all under certain terms and conditions.
171126 An Ordinance amending Chapter 10-800 of The Philadelphia Code, entitled "Safety," by repealing certain provisions relating to police and fire radio broadcasts, all under certain terms and conditions.
171127 An Ordinance repealing Chapter 13-700 of The Philadelphia Code, entitled "Garbage Disposal Units," all under certain terms and conditions.
170942 Resolution authorizing the Standing Committee on Legislative Oversight to hold hearings to examine progress in implementation of Tax Reform Commission recommendations, the impact of implemented recommendations, and further opportunities for enhancing the competitiveness of Philadelphia's tax structure.
Committee on Legislative Oversight
Chair: Councilman Brian O’Neill (10th District)
Vice Chair: Councilman Kenyatta Johnson (2nd District)
A
This
is
the
public
hearing
of
the
City
Council
legislative
oversight
committee.
The
purpose
of
this
public
hearing
is
to
hear
testimony
on
bills.
Number
one,
seven
one,
one,
eight
one,
seven
one
one,
nine
one,
seven
one
one:
two:
zero
one,
seven
one
one,
two
one
one,
seven
one
one,
two,
two
one,
seven
one
one,
two,
three
one,
seven
one
one,
two,
four
one:
seven
one
one:
two,
six
one:
seven
one
one:
two:
seven
and
resolution:
one:
seven:
zero:
nine
four
I
am
council
making
out
a
Johnson
I
am
the
chairman
of
the
council's
legislative
oversight.
A
Committee
I
recognize
the
presence
of
a
quorum
with
the
following
committee,
members,
councilman,
Derrick,
green
Councilwoman,
Helen
Gill
and
Councilwoman
Blondell
Reynolds
Brown.
Today
we
have
several
bills
on
our
agenda
that
have
come
out
of
councils.
Revelatory
reform,
commission,
that's
chaired
by
Councilman,
Derek
green.
We
will
be
taking
testimony
from
the
administration
on
those
bills
before
moving
to
a
public
meeting
to
consider
action
on
those
bills.
Following
that,
following
that
we
will
be
moving
back
to
our
public
hearing
for
testimony
on
resolution.
A
B
Seven
one
one
one:
eight:
an
ordinance
amending
chapter
10800
of
the
philadelphia
code
entitled
safety
by
repealing
certain
provisions
of
section
10
806
relating
the
construction
of
reviewing,
stands
and
amending
other
provisions
of
said
section
all
under
certain
terms
and
conditions.
One
seven
one
one:
one:
nine
ordinance
amending
chapter:
nine
400
of
the
Philadelphia
Code
entitled
carriers
by
repealing
certain
provisions
related
relating
to
motor
buses,
all
under
certain
terms
and
conditions.
B
One
seven
one:
one:
two
Oh
an
ordinance
amending
chapter:
nine
700
of
the
Philadelphia
Code
entitled
amusement
buses
by
repealing
section
nine
704
relating
to
motion
pictures
all
under
certain
terms
and
conditions.
One
seven
one
one:
two
one:
an
ordinance
amending
chapter:
nine
600
of
the
Philadelphia
Code
entitled
service
and
other
business
by
repealing
certain
provisions
related
to
refuse
collection
all
under
certain
terms
and
conditions.
B
1,
7,
1,
1,
2
6,
an
ordinance
amending
chapter
10
800
of
the
Philadelphia
Code
entitled
safety
by
repealing
certain
provisions
relating
to
police
and
fire
radio
broadcasts
all
under
certain
terms
and
conditions.
1
7,
1,
1,
7
and
ordinance
repealing
chapters;
chapter
13,
700,
the
Philadelphia
Code
entitled
garbage
disposal
units
all
under
certain
terms
and
conditions.
A
C
C
To
talk
about
how
we
can
improve
and
hand
the
business
climbing
city
in
Philadelphia.
Since
this
initiative
has
started,
we
have
now
been
working
with
various
city
departments
to
propose
legislation
and
regulations
that
they've
seen
that's
been
antiquated
as
impacted
their
ability
to
move
forward
and
have
better
relationship
with
the
business
community.
C
Today's
legislation
is
one
aspect
of
that
in
our
conversations
with
L&I
Commissioner
Dave
Perry
he's
proposed
information
and
legislation
that
goes
along
to
that
degree
and
we're
using
this
as
a
model
to
talk
about
other
city
departments
on
how
they
can
propose
legislation
as
well
as
regulations
that
they
believe
should
be
removed
from
the
code
or
from
our
regulatory
framework
that
impacts
their
ability
to
do
their
job
and
also
work
with
small
businesses,
as
well
as
other
businesses
throughout
the
Greater
Philadelphia
community.
So
this
is
another
step
in
that
goal.
A
A
D
D
See
no
thank
you
good
afternoon.
Mr.
chairman
and
members
of
the
legislative
oversight
committee.
My
name
is
Jonathan
Schneider
and
I
serve
as
director
of
business
financial
resources
for
the
city
of
Philadelphia
Department
of
Commerce
I'm
here
to
testify
in
support
of
nine
bills,
which
repeal
code
provisions
that
have
been
deemed
archaic
or
no
longer
necessary.
D
Excuse
me:
repeal
of
police
and
fire
scanner
permit
bill
number
1,
7,
1,
1,
2,
7,
repeal
of
garbage
disposal
unit
ordinance.
The
special
committee
for
regulatory
reform
was
established
in
the
spring
of
2017
by
resolution.
1
7
1
set
1
7
0
1
7
9.
The
purpose
of
this
committee
is
to
identify
outdated
and
unneeded
provisions
in
the
Philadelphia
Code
and
in
administrative
regulations
and
recommend
revisions
that
will
make
it
easier
to
open
and
operate
businesses
in
Philadelphia.
D
The
committee's
process
includes
members
of
City
Council
and
their
staff,
Department
of
Commerce
leadership
and
members
of
the
business
community,
who
have
been
appointed
by
the
council
president,
through
dialogue
between
and
among
stakeholders.
The
special
committees
formulating
recommendations,
we'll
help
improve
and
modernize
Philadelphia's
business
environment
and
ensure
that
good
jobs
are
being
created
in
this
city.
This
past
December,
the
Special
Committee
identified
seven
outdated
provisions
which
were
repealed.
D
Thanks
to
the
cooperation
between
city
council,
private
employers
who
serve
on
the
committee
and
multiple
city
departments,
by
repealing
the
nine
archaic
and
outdated
code
provisions
that
we
are
discussing
today,
we
will
continue
to
streamline
the
code
itself,
making
it
more
current
and
accessible.
The
administration
supports
these
nine
bills.
Thank
you
for
the
opportunity
to
testify
today.
A
A
This
concludes
the
public
hearing.
One
bill
is
number
one;
seven,
one
one,
eight
one,
seven
one,
one,
nine
one,
seven
one,
two,
zero
one,
seven
one,
two
one,
one,
seven
one,
two,
two
one,
seven
one,
two,
three
one,
seven
one,
two,
four
one,
seven
one
one,
two
six
and
bill
number
one,
seven,
one
one:
two:
seven.
We
will
now
go
into
a
public
meeting
to
consider
the
action
to
be
taken
on
these
bills.
C
Greene
Thank
You
mr.
chair
I,
move
that
Bill's
numbered
one;
seven
one
one,
one,
eight
one,
seven
one
one,
one:
nine
seven
one
one,
two:
zero
one,
seven
one
one,
two
one
one,
seven
one
one,
two,
two
one,
seven
one
one,
two,
three
one,
seven
one
one,
two,
four
one,
seven
one
one:
two
six
and
one
seven
one
one:
two:
seven.
We
reported
from
this
committee
with
a
favorable
recommendation
and
the
rules
of
council
be
suspended
to
permit
first
reading
of
this
bill
at
our
next
session
of
these
bills.
A
Has
been
moved
and
properly
seconded
that
these
bills
be
reporter
from
the
committee
with
a
favorable
recommendation
and
further
move
that
the
rules
that
council
be
suspended
to
prevent
first
reading
of
these
bills
at
the
next
session
of
council.
All
those
in
favor
of
the
motion
will
signify
by
saying
hi
opposed
the
high's.
Have
it
and
the
motion
carries.
Those
bills
will
be
reported
from
this
committee
with
a
favor
recommendation,
what
they
request,
that
the
rules
of
council
be
suspended
to
permit
first
reading
at
the
next
camp
next
session
of
council.
A
E
E
B
Seven:
zero
nine
four:
two:
a
resolution
authorizing
the
Standing
Committee
on
legislative
oversight
to
hold
hearings
to
examine
progress
and
implementation
of
tax
reform.
Commission
recommendations,
the
impact
of
implemented
recommendations
and
further
opportunities
for
advancing
the
competitiveness
of
Philadelphia's
tax
structure.
A
Thanks
very
much
just
before
we
get
started
just
briefly.
First,
someone
acknowledged
councilman
councilman
Allen
down
for
being
here
today
as
well.
I'm
sure
we'll
provide
some
great
insight
to
this
discussion.
The
formation
of
this
resolution,
which
is
based
upon
my
brief
time,
certainly
as
a
council
member
of
my
former
life,
serving
as
a
state
rep
state
representative
and
working
with
members
of
the
business
community
as
it
relates
to
how
would
you
make
Fidel,
feel
a
more
business-friendly
a
competitive
City,
particularly
looking
at
our
tax
structure.
A
We
have
17
taxes
on
a
book
that
some
may
tell
you
have
a
significant
impact
on
why
individual
will
decide
to
do
business
or
not
to
do
business
on
this
side
of
City,
Line,
Avenue
and
so
as
I
decided
to
move
forward
as
the
councilman.
The
second
council
matter,
district
I
sit
on
the
board
of
PIR
DC,
which
is
the
foot
off
Industrial
Development
Corporation.
A
We
work
very
closely
with
Liberty
Property
Trust
and
the
development
that's
taking
place
done
at
the
Navy
Yard
I'm,
also
sitting
on
the
Philadelphia
International
Airport
advisory
board,
we're
overseeing
at
8.1
billion
dollar
expansion.
I'm
I
also
work
very
closely
as
the
chairman
of
the
public
utilities
on
committee
and
transportation,
public
to
public
utilities
and
transportation
community.
A
Here
in
the
city
of
Philadelphia
and
oftentimes,
we
get
good
marks
and
oftentimes
I
do
hear
that
we
should
be
receiving
bad
marks
based
upon
our
relationship
with
the
business
community
and
how
sometimes
the
things
that
we
proposed
could
be
very
regressive
and
having
a
significant
negative
impact
on
the
business
environment.
Here
in
this
is
Offutt
from
a
tax
standpoint,
and
so
we
decided
my
office
and
working
with
my
staff
to
put
together
this
herring.
A
Just
today,
I
provide
a
platform
for
those
in
the
business
community
to
come
and
express
their
opinion
on
our
tax
structure
here
and
see
their
foot
off,
and
hopefully
we
can
continue
to
create
a
dialogue,
some
concrete
ways
how
we
can
improve
the
business
environment
here
in
the
city
of
Philadelphia.
So
with
that
being
said,
I'm
opening
up
any
of
my
colleagues
would
like
to
make
a
comment:
ok,
I'm
not
can
a
clerk.
Please
call
the
first
panel.
A
F
Good
afternoon,
chairman
Johnson
and
members
of
the
committee
and
legislative
oversight,
again,
my
name
is
Harold
T,
Epps
and
I.
Am
the
director
of
Commerce
for
the
city
of
Philadelphia.
I
am
here
today
to
provide
testimony
regarding
resolution
number
one
7:09
42,
which
authorizes
hearings
to
examine
progress
in
implementation
of
tax
reform,
commission
recommendations,
the
impact
of
implemented
recommendations
and
further
opportunities
for
enhancing
the
competitiveness
of
Philadelphia's
tax
structure.
As
you
well
know,
these
are
topics
that
I
care
a
lot
about
and
are
central
to
my
role
as
Commerce
director.
F
Director
I
I
have
wanted
to
contribute
to
Philadelphia's
economic
growth,
which
is
why
I
was
honored
to
serve
as
co-chair
of
the
mayor's
Task
Force
on
tax
policy
and
economic
competiveness
in
2009.
The
purpose
of
this
task
force
was
to
examine
tax
structure
and
a
real
in
the
real
estate
market
and
provide
recommendations.
F
The
task
force
provided
numerous
recommendations
that
I
am
pleased
to
report
that
some
progress
has
been
made
on
these
I've
included
an
addendum
with
my
testimony
outlining
the
progress
on
each
of
the
recommendations
of
the
2009
task
force
and
wish
and
will
share
with
you
today
a
sampling
and
had
just
made
a
sampling
of
the
of
some
of
the
key
recommendations
in
progress
today.
Number
one
recommendation
was
to
reduce
the
wage
tax
to
2.7
percent
by
2025.
F
The
status
is
the
rates
are
now
three
point:
nine,
zero,
zero,
four
percent
for
residents
and
three
point:
four:
seven,
one
three
point:
four:
seven:
four
one
for
non-residents
and
on
behalf
of
the
administration,
we
are
committed
to
continue
these
reductions.
Recommendation
number
two
was
to
reduce
the
net
income
portion
of
birth.
From
six
point,
four:
five
percent
to
six
percent
by
2025,
the
2018
rate
is
six
point.
Three
percent
and
the
city
again
is
committed
to
continuing
reductions
of
bird
further.
F
Thirdly,
our
recommendation
was
to
adopt
a
single
sales
factor
apportionment
the
status
was
and
the
status
is
adopted
in
2017
next
recommendation
was
to
gradually
increase
tax
revenue
from
real
estate,
the
actual
value
initiative,
a
VI
implemented
in
2014
real
estate
tax
revenue
increased
from
fortune
3.4
million
dollars
in
2009
to
583
point
1
million
dollars
in
2017
real
estate
transfer,
Realty
transfer,
tax
revenue
double
from
115
point:
seven
million
dollars
in
2009
to
232
point
nine
million
dollars
in
2017.
And,
finally,
the
recommendation
was
to
improve
tax
tax
collection
and
compliance.
F
These
are
some
of
the
examples
to
speak
to
the
incremental
progress
that
the
city
has
made
to
improve
the
business
environment
and
I
should
add
that
these
policy
changes
have
been
accompanied
by
positive
economic
indicators.
Philadelphia's
population
grew
from
one
point:
four:
five
million
in
2009
to
1.5,
seven
million
in
2017,
unemployment
in
2009
was
10.1
percent,
and
now
it
is
at
5.7
percent
and
our
job
Roatan,
our
job
growth
rate
have
surpassed
the
national
average
for
the
for
two
consecutive
years.
F
Despite
these
father
trends,
our
poverty
rate
is
stubbornly
stuck
at
25.7%
affecting
nearly
400.
Thousands
of
our
residents
is
my
hope
that
the
increase
in
tax
revenue
resulting
from
these
policy
changes
a
1.3
billion
dollar
increase,
since
the
participation
in
the
task
force
and
I
will
provide
us
with
financial
resources
to
commit
to
education
and
workforce
development,
the
best
tools
we
have
attacking
this
urgent
issue.
It
is
also
important
that
we
capitalize
on
improve
revenue
streams
by
improving
the
health
of
our
children
fund.
F
A
healthy
general
forum
will
improve
our
bond
rating,
which
will
lower
the
city's
debt
service
all
the
time
as
a
city.
We
must
pick
up
the
pace
in
making
the
reforms
that
are
necessary
to
attract
and
retain
more
companies
like
and
no
day
goes
by.
That
I,
don't
mention
the
word
Amazon
so
like
Amazon
and
Apple,
far
below
yours
and
Comcast's,
just
to
name
a
few
and
we
as
we
make
the
government
more
attractive,
we
can
attract.
F
A
A
In
terms
of
importance
conversation
when
we
were
putting
together,
this
hearing
also
was
I'm
around
our
pitch
for
Amazon
and
I.
Remember
I
would
I
would
read
various
sources
online,
while
we
were
going
through
the
process
of
applying
foot
RFP
for
Amazon
I.
Think
now
I
think
we
did
an
excellent
job,
but
this
issue
around
the
city
of
Philadelphia
its
competitiveness,
competitiveness
around
high
tax
structure.
A
J
F
A
F
Refer
back
to
when
I
first
said
here
for
first
time
2009,
what
we
said
was
that
our
tax
structure
needed
to
continue
to
be
streamlined
and
improved,
and
what
what
I
would
say
a
decade
later
and
I
had
no
idea
at
that
point.
I'd
be
doing
this
job.
By
the
way
we
have
made
some
progress,
but
not
nearly
fast
enough.
One
of
my
favorite
lines
is
everything
about
Philadelphia
is
going
in
the
right
direction.
F
J
You,
mr.
chairman,
let
me
seize
the
moment
also
to
tip
my
hat
to
councilman
green
in
tackling
this
labor-intensive
task
to
take
a
laser
beam,
look
at
all
of
the
regulations
and
then
figure
out
how
we
can
streamline
in
a
way
that's
appropriate.
Do
you
agree
mr.
Epps,
with
Chairman
Kenyatta
Johnson's
perspective
that
our
Achilles
heel
maybe
could
be
our
city's
tax
structure
at
the
end
of
the
road
when
Amazon
makes
its
decision
based
on
the
submission?
J
F
Cannot
speculate
on
what
Amazon
will
when
I
tell
us
they've
been
very,
very
protective
about
what
they
tell
us
that
when
they
tell
us,
but
I
can
only
say
that
we're
not
sure
exactly
what
they
their
final
decision-making
criteria
will
be.
But
when
we
just
do
the
analysis
of
what
they
put
in
our
feet,
they
had
a
category
called
incentives.
They
had
a
category
called.
K
F
If
you
just
compare
us
against
the
other
remaining
17
million
19
that
remaining
municipalities,
he
just
did
a
scoring
and
rating.
That's
where
we
don't
fare
very
well.
We
don't,
but
we
don't
know
then
turn
around
and
say
we
don't
know
if
we're
that
would
be
in
the
seven
eight
nine
different
categories
that
they
were
prioritize.
I
can't
if
hate
prioritize,
location,
affordability,
talent,
we
will
rank
very
high.
J
F
Put
Amazon
aside,
as
we
do
the
commerce
work
on
a
daily
basis
about
retaining
and
recruiting
businesses.
We
win
our
fair
share
when
we
out,
but
when
we
lose
often
it
is
because
of
our
tax
and
and
the
reputation
that
we
carry
about
not
being
very
business
friendly.
So
we
have
data
that
will
give
that
tells
us
from
others
that
businesses
I'm
not
the
career
because
of
the
tax
structure
and
all
because
of
our
reputation
of
being
non-business
friendly
shift.
J
Your
thinking
to
business
Carter's,
which
are
major
engines
for
neighborhoods
across
the
ten
council,
Matic
districts
of
the
menu
of
taxes,
which
ones
might
you
ID
as
most
onerous
for
those
small
businesses
on
business
corridors
whose
challenges
are
very
different
than
you
are
a
medium
to
large
sized
business?
And
that's
relative
depending
upon
who
you're
talking
to
and.
F
For
them,
I
would
say
it
does
not
start
with
tax.
It
starts
with
complexity.
It
starts
with
how
easy
it
is
to
get
your
business
open.
How
how
easy
it
is
to
get
alignment
across
our
different
departments
of
what
the
criteria
are
to
stay
open,
the
issues
of
enforcement
and
then,
when
it
comes
to
tax
I
would
speculate.
It's
probably
bird.
You.
J
F
Again,
it
starts
with
how
the
work
that
we've
been
doing
and
and
the
subcommittee's
that
we
form
already
tell
us
that
and
when
we
travel
the
world
any
benchmark
data.
We
are
a
complex
city
with
a
lot
of
regular
regulatory
requirements
to
get
open,
and
then
we
have
inconsistent
in
misaligned
enforcement
to
stay
open.
Last.
J
F
What
commerce
has
done
is
initiate
and
lead
the
assembly
of
the
forums
and
the
tables
and
a
task
force
to
get.
It
is
what
one
department
can't
do
it:
it's
Illinois
its
health,
its
revenue,
its
commerce.
We
all
have
to
be
on
the
same
page,
councilman,
green
CEO,
Wunderland
and
director
Epps.
We
need
this
cross-functional
task
force.
They
got
a
lot
of
subcommittees
that
and
recommendations
on
a
daily
weekly
basis
to
get
us
more
aligned,
more
simplified
and
more
competitive.
Okay.
J
F
J
F
Much
and
businesses
have
a
choice
to
make
that's
the
thing
we
always
have
to.
Can
you
Mitchell
sit
there
on
a
module?
I
can
be
on
this
side
of
the
city
line
and
I
got
a
three
point.
Seven
percent
raise
tax
on
this
side.
I
don't
have
one
over
here.
You
can
open
in
thirty
days
over
here.
It's
gonna.
Take
me
five
or
six
months
so
which
side
do
I
choose
to
go
to
the
one.
That's
gonna
get
me
a
business
faster,
okay,.
F
E
E
I
personally
see
taxes
as
one
aspect
of
it,
but
you
know
it
is
really
important,
as
you
know
in
our
city,
that
as
we
look
to
attract
jobs,
we
are
a
city
that
is,
you
know
the
largest
high
poverty
city
in
the
country,
that
we
want
to
make
sure
that
we
attract
businesses
and
jobs
without
exacerbating
poverty
or
rising
income
inequality.
At
the
same
time-
and
we
are
certainly
seeing
that
in
Philadelphia
right
now,
where
we
do
see
tremendous
growth
at
the
top
and
not
so
much
of
the
at
the
base
and
I.
E
That
makes
it
attractive
to
their
employees
to
not
only
work
here
but
to
attract
more
here
and
also
to
settle
down
and
feel
like
they
can
raise
a
family.
So
you
talked
a
little
bit
about
that,
but
I
was
wondering
if
you
could,
you
and
I
talked
about
that
rather
this
morning
and
I
think
you
alluded
to
it
that
workforce
development,
other
types
of
things,
investment
in
education
are
also
very
strong
indicators
of
what
makes
a
business
friendly
environment,
and
we
certainly
know
that
poverty
is.
They
dissuade
her
to
a
business
friendly
environment
income.
E
F
My
view
again,
having
lived
in
six
different
states,
some
good
some
bad
is
that
Philadelphia
after
40
years
of
decline
is
on
the
rise
as
it
relates
to
population
and
an
employment
to
critical
indicators,
and
the
poverty
number
is
not
following
suit.
My
belief,
my
perspective
on
that
is
because
we've
had
decades
of
under
investment
in
our
education
system
and
as
a
result,
we
now
have
a
high
costs
of
what
I'll
call.
This
is
the
mayor's
worth
the
misery
index.
F
F
That's
in
my
presentation-
and
all
of
you
have
seen
or
will
see
when
I
come
visit-
is
that
this
correlation
between
two
and
four-year
degree
attainment
rate
in
poverty
rate,
the
higher
your
degree,
attainment
rate,
the
lower
your
poverty
rate
and
that's
the
biggest
challenge
Philadelphia
faces
and
the
more
we
can
solve
that,
the
more
we
can
get
businesses
to
come
to
Philadelphia.
We
see
it
every
day
that
we
get
asked
as
much
about
talent
and
work
for
us
as
we
do
about
taxes.
F
Okay,
we
get
asset.
So
to
me
it's
the
tea
and
the
tea
is
to
talent
and
the
taxes,
but
we
should
not
let
two
years
of
positive
trend.
With
the
last
two
years.
We've
got
outpace
the
national
average
in
job
growth,
but
that's
still
not
an
indicator
for
us
to
get
lazy.
We
must
improve
the
tax
and
business
structure
and
while
we
are
syn
uptick
in
revenue,
we
must
invest
in
education
such
that
I'll.
A
So
you
just
touched
on
something:
I'm
gonna
just
make
a
brief
statement.
When
you
talk
about
the
rise
and
Talent,
and
then
you
see
a
correlation
of
priority
pointing
down
and
I
would
think
that
will
be.
We
will
be
forward
thinking
for
the
future,
because
we
asked
some
of
the
best
ads
and
mads
institutions
in
a
region.
A
They've,
not
the
eastern
seaboard,
and
so
hopefully
there'll
be
another
conversation
down
the
line
on
connecting
that
too,
because
I
mean
again
that's
the
tale
of
two
cities
and
you
got
pan,
you
got
the
sour
ya
temple
foot
off
university
and
at
the
same
time,
a
lot
of
these
institutions
are
within
areas
of
high
poverty.
To
be
quite
frank
with
you,
but
I
like
when
you're
talking
about
the
numbers
shows
the
higher
level
of
attainment
of
Education
to
lower
the
poverty
poverty
rate
coast.
Chairman
green.
C
C
It
makes
me
think
reflect
on
something
personal
as
we
get
more
seasoned,
as
my
father
would
say,
and
sometimes
as
we
as
adults,
we
look
at
ourselves
in
the
mirror.
We
think
we're
still
the
same
age
or
size.
We
were
or
were
an
undergrad
and
as
you
go
a
decade
two
decades,
three
decades
you
tend
to
add
additional
girth
to
your
weight,
and
but
it
didn't
happen
overnight.
C
It
happened
over
time
and
it's
when
you
look
at
this
issue
in
reference
to
taxes,
and
you
look
at
the
history
of
taxation
in
the
city
of
Philadelphia,
we
have
certain
taxes
that
were
implemented
and
continue
to
grow
over
time,
and
so,
as
a
result
and
because
of
the
revenue
needs,
we
have
as
a
city
on
the
challenges
that
are
current.
Where
we're
not,
we
can't
rely
on
the
federal
government
or
the
Commonwealth
for
assistance.
C
We
have
to
make
changes
and,
although
sometimes
we'll
make
those
changes
quickly,
like
some
people
who
want
to
take
a
Hydroxycut
or
some
other
type
of
quick
diet
pill
to
lose
weight.
That's
not
realistic,
because
what
happens
that
you
get
back
to
where
you
were
in
a
short
period
of
time.
So
I
say
that,
because
although
I
know
we're
making
improvements
on
taxation
and
we're
doing
some
things,
we
need
to
do
more.
I
think
some
of
the
other
challenges
that
we
don't
talk
as
much
is
the
hard
work.
C
So
when
I
know
some
years
ago,
lost
no
significant
amount
of
weight.
Part
of
that
was
because
I
get
up
early
in
the
morning
fortified
to
run
so
some
of
the
things
that
look
in
our
business
climate
is
that-
and
you
touched
on
us
a
little
bit
and
I
want
to
get
your
thoughts
on
what
we
as
a
city
can
do
and
when
I
say
city
I'm
talking
not
only
the
legislative
branch
but
also
executive
branch.
C
How
can
we
make
the
process
of
doing
business
in
a
city
easier,
is
and
I
think
it's
somewhat
human
nature.
If
you
tell
someone
that
to
get
to
this
location,
if
you
want
to
go
from
A
to
B,
but
you've
got
to
go,
make
a
left
here
then
make
it
right
and
then
go
three
miles
and
then
go
two
steps
go
over
bridge.
C
So
what
type
of
steps
can
we
take
as
a
city
to
really
drill
down
on
the
process
or
processes
of
starting
a
business
or
maintaining
a
business
in
the
city
of
fidelity?
Because
I
think
that's
the
thing
that
it's
that's
the
real
heavy
work
that
we
don't
do.
We
have
so
many
silos
in
city
of
Philadelphia
between
at
times?
Well,
this
is
a
revenue
issue
versus
this
is
a
commerce
issue
versus
a
Health
Department
issue
and
from
an
out
person,
that's
outside
of
city
government.
C
Looking
in
its
all
the
city-
and
you
know
we
I
look
at
the
city,
I
guess
because
I
started
my
career
as
a
banker
from
a
small
business
perspective,
I,
look
at
city
Fadel,
we
are
in
the
customer
attraction
and
retention
business.
We
need
to
retain
constituents
to
retain
businesses
and
we
need
to
attract
constituents
and
attract
businesses
and
I.
C
Think
one
of
the
things
that
I
would
like
to
see
us
going
for
is
having
a
real
strategic,
almost
like
a
strike
force
like
you,
have
in
any
type
of
health
issue
or
military
issue
that
can
really
really
get
to
the
crux
of.
Why
is
it
so
hard
for
a
business
to
get
started
mr.
de
Fidel
Fiat,
and
also
I
so
hard
for
a
business
to
maintain
itself
in
the
city
if
it
off
and
how
we
can
cut
down
some
of
those
processes?
C
So
I'm
curious
on
your
thoughts
and
then
you
know
the
answer
today,
because
not
a
it's,
not
a
a
quick
answer
but
I
think
that's
something
we
have
the
city
really
need
to
drill
down.
That's
a
massive
lead,
a
heavy
lift
and
we
continue
to
work
on
tax
policy,
but
the
heavy
lift
is
really.
How
do
we
make
it
us
more
business-friendly
gone
forward
so.
F
Because
of
our
circumstances
circumstance,
my
favorite
comment
would
be
this.
We've
got
to
recognize.
This
is
a
marathon,
not
a
sprint,
doesn't
matter
whether
it's
education,
talent
or
taxes,
we
got
to
look
at
this
as
a
decade
kind
of
initiative.
Tell
you
a
quick
story.
After
I
left
to
test
tax
laws,
I
served,
you
know
in
the
private
sector,
for
the
last
administration
or
the
continuous
improvement
task
force
two
years
we
quit,
because
we
saw
no
action.
They
saw
that
I'm.
Sorry.
C
F
No
action
right
so
the
challenge
that
we
doesn't
matter,
whether
we,
the
legislative
body
or
the
second
about
it.
We
must
realize
that
this
is
a
long-term
initiative.
We
must
stay
the
course,
and
so
I
happened
to
his
Commerce
director
co-chair
the
education
and
workforce
task
force
co-chair
the
with
you
and
CEO
Wonder
Lane,
the
tax
regulatory
task
force
and
I
can
guarantee
you
as
long
as
I'm.
Here
we
will
stick
with
it,
because
we
don't
have
the
ability
to
lose
20
pounds
overnight.
F
This
guy
right
here
to
my
left,
will
tell
you
that
I
often
say
we
need
to
move
faster
and
he
reminds
me
of
you've
got
still
got
a
balanced
budget,
so
we
can
only
even
move
at
the
pace
that
we
can
find
the
equation
I
mean.
But
let
me
just
answer
question
we
need
to
evaluate
mid
streamline,
we
need
to
eliminate
and
we
need
to
automate
and
the
work
that
we're
doing
together
will
provide
opportunities
for
all
of
those
to
take
cost
out
as
we
go.
C
C
Out
right
but
I
guess
when
I'm
really
just
want
to
drill
down
I
think
just
like
we
did
with
Amazon
and
when
we
did
the
hearings
in
that
I
held
in
the
community
hall
about
the
Amazon
initiative,
where
everyone
was
on
board
that
was
kind
of
a
moonshot.
An
approach.
I
think
in
this
perspective
is
kind
of
similar
that
we
need
to
identify
a
timeline
and
then
devote
resources.
Embarrass
departments
to
have
people
to
meet
on
a
regular
basis
to
really
get
to
the
crux
and
doesn't
have
to
be
another
Commission.
C
It
doesn't
have
to
be
another
initiative,
it's
more
of
just
delving
resources
and
those
who
have
the
expertise
in
the
background,
especially
at
middle
management
level.
They
can
say
these
are
the
issues
that
I
confront
with
every
day
and
how
do
we
kind
of
drill
down
that
stuff
and
I?
Think
that's
something
where
I
think
going
forward.
C
I
know
you're
doing
initiative
to
do
a
better
job
of
us
as
a
sitting
market
to
business
communities
about
why
Philadelphia's
open
for
business,
which
is
great
because
we
have
not
done
that
historically,
like
we
do
in
the
hospitality
perspective,
but
trying
to
really
identify
resource
to
really
focus
on
the
heavy
lift
I
think
is
something
as
important.
I
know.
We
have
a
challenging
budget
structure,
but
things
that
are
important.
We
find
ways
to
get
the
resources
so.
F
I
agree:
100%
of
the
only
thing
that
I
would
add
to
it
is
what
we've
learned
is
when
we
attempt
to
do
that
only
internally,
we
sometimes
miss
the
unintended
consequences.
So
that
is
why
the
roundtables,
the
consortiums
that
include
your
customer,
is
important.
So
when
you,
when
you
make
the
change
you
or
they
have
helped,
you
think,
through
the
consequences,
but,
more
importantly,
the
unintended
ones
that
come
out
of
the
change
that
you
make.
Sometimes
just
internally,
you
you
miss
the
bigger
picture
but
I
completely.
Everybody
affected
Thank.
L
Thank
You
mr.
chairman
I
was
just
looking
up
and
impliedly
Thank
You
Commissioner
Breslin
director
Epps.
You
guys
doing
a
good
job
by
the
way.
Oh
thank
you.
Thank
you,
I'm,
just
looking
up
our
bond
rating
just
so,
you
know,
I
think
that
Matz
did
last
year
gave
us
a
presentation
on
the
20
cities
across
the
country
similar
to
Philadelphia
and
where
we
stood
on
bond
rating
and
I
think
we're
at
3
or
4
towards
the
bottom
of
the
ratings
on
bond
rating.
L
So
we
were
not
that
great,
but
I
think
the
three
issues
that
he
focused
on
or
that
the
bond
rating
people
focus
on
number.
One,
of
course,
is
the
underfunding
of
our
pensions.
Number
two
is
reserves.
Cash
reserves
and
I.
Think
Rob
DuBose
done
a
pretty
good
job
in
the
last
six
months.
Building
up
those
reserves,
which
is
good
and
I,
think
three
is
delinquencies
and
I
know
you've
addressed
that
I
want
to
have
a
few
other
items.
K
L
What
I
see
is
roughly
we
have
a
real
estate
inventory
that
was
1.3
billion
of
value
last
year,
which
we
build
91
billion,
because
the
rest
is
nonprofit.
We
don't
bill
it
almost
a
third
and
that
produced
revenues
of
about
1.3
billion,
of
which
the
city
gets
45%.
The
school
system
gets
55%,
that's
what
your
numbers
came
from,
but
we
don't
get.
We
don't
bill
over
40,
45
billion
of
real
estate.
Keep
that
in
mind.
So
you
have
a
store.
All
the
city
of
Philadelphia.
L
Well,
one
out
of
three
customers
come
into
the
store
and
don't
really
pay
for
services
whose
calling
it
the
way
it
is
the
only
services
they
really
pay
for
our
wage
taxes.
There's
no
net
profits,
there's
no
taxes,
no
real
estate
taxes,
which
is
I,
love,
Ed's
and
meds
I'm.
Just
telling
you
the
way
it
is
so
that's
on
one
end
of
the
spectrum.
On
the
second
end
of
the
spectrum,
you
have
a
city
that
has
twenty
six
percent
or
twenty
five
point.
L
Seven
percent
of
our
population
in
poverty,
which
is
you
said,
is
a
big
strain
on
the
budget.
See
these
two
things
pulling
us,
and
one
of
the
problems
is
that
the
business
community
and
individuals
get
caught
in
the
middle
of
that
and
that's
why
the
tax
structure
probably
is
the
way
it
is,
and
the
only
way
to
really
get
out
of
that.
L
We
want
to
encourage
more
heads
and
meds,
but
we
need
to
take
people
out
of
poverty
number
one
and
bring
in
more
people
and
expand
the
base,
but
otherwise
we're
gonna
be
in
the
same
situation.
Having
said
that,
though,
there's
a
lot
of
positive
things
that
are
going
on
that
I
would
like
to
see
us
promote
more
than
we
are
now.
One
of
them
was
which
I
love
this
fact.
This
innovation
magazine
I,
mentioned
council
on
a
Thursday.
L
We
moved
as
a
city
to
number
three
in
the
country
up
five
notches
in
the
tech
startup
world
only
Boston
and
San
Francisco
or
ahead
of
us
we're
number
three.
That's
amazing,
amazing.
We
were
eight
a
year
ago,
when
a
number
three,
we
should
be
promoting
that
I
think
I've
been
told
that
we're
either
one
or
two
for
cancer
research
in
the
country.
Amazing,
we
need
to
promote
those
things.
You
know
a
lot
of
businesses
are
successful
because
they
promote
cities
got
to
do
the
same
thing.
We
have
to
promote
more.
L
L
And
the
city
did
a
great
job
and
then
the
Millennials
that
have
moved
here
in
the
last
ten
years,
a
hundred
thousand
of
them
we're
killing
it
with
that
I
think
the
last
twelve
months
you
have
the
highest
percentage
of
Millennials
move
here,
but
one
of
the
statistics
that
I
like
the
best
is
that
non-native
college
graduates,
I
think
was
12
to
14
years
ago,
meaning
parents
not
from
this
area.
24
percent,
who
went
to
college,
stayed
here
at
the
time
Boston
had
49%
killing
us.
We
wrote
articles
about
what
we
call
the
brain
drain.
L
M
L
Amazing,
so
I
mean
I,
don't
think
we're
promoting
these
things
and
but
I
think
we
need
to
promote
more
because
that
will
attract
more
business
and
I'm,
not
sure
it's
from
commerce
of
where
it
comes
more.
You
need
more
money
for
a
book,
that's
an
investment
that
we
should
make
on
this
on
the
issue
with
poverty.
You
know
this
took
a
long
time
for
us
to
get
to
this
level
and
a
agree
100%
with
what
you
say:
we're
not
gonna
get
out
of
it
overnight.
It's
gonna
be
a
long
haul,
I'm.
L
Just
a
big
believer
in
making
sure
we
teach
financial
literacy
from
kindergarten
through
twelfth
grade
every
class
must
teach
financial
literacy
you're,
not
gonna,
break
that
cycle,
and
technology
K
through
12.
Dr.
heit
tells
me
91%
of
our
kids
in
public
school.
Have
one
parent,
one
parent
and
eighty-eight
percent
are
in
poverty
in
a
public
schools,
so
financial
literacy
in
tech
on
the
last
piece,
this
one
mentioned,
councilman
green,
your
dad
is
absolutely
right.
I
will
say
that
on
the
subject
of
girth,
okay,
I
wrestled
in
high
school
157
I.
F
I
may
respond
to
councilman
Dom
about
the
marketing
piece.
So
again,
a
ten-year
perspective
since
I
didn't
go
to
high
school
here.
I
guess
I'll
never
be
a
real
real,
real,
real
Philadelphia,
but
anyway
I
call
it
home
anyway.
This
whole
notion
of
the
Quaker
you
know
stated
environment
I
think
is
one
of
the
reasons
that
we
don't
have
a
history
of
promoting
ourselves.
Contrary
to
the
other
message,
live
called
Boston.
F
Let
me
think
how
many
of
themselves,
but
all
that
then
aside,
we
out
of
commerce,
are
leading
an
initiative,
know
the
continent,
the
Amazon
proposal
reinforced
our
need
to
get
even
more
aggressive
about
telling
our
story
and
marketing,
and
so
we
have
another
group
of
people
around
the
table.
All
the
externally
facing
people
led
by
my
chief
of
staff,
Silva
Gagne
Howard,
that
is
developing
the
strategy
to
elevate
the
branding
and
marketing
of
the
city
and
the
issues
around
tech.
F
J
F
J
F
J
F
J
F
J
F
J
A
C
You,
mr.
chair
and
I'm,
thank
you
counseling
down
for
your
comments.
I
definitely
agree
with
you
on
the
marketing
aspect,
as
I
was
saying
earlier,
something
that
I've
been
pushing
for
some
time.
I,
truly
believe
in
the
phrase
that
a
friend
of
mine
used
to
work
for
P&G
used
to
say
perception
is
reality,
and
so,
from
the
perspective
of
initiative
that
you're
working
on
from
a
marketing
perspective
in
this
upcoming
budget.
Are
there
any
dollars
associated
with
that
proposal
or
initiative
that
we're
talking
about
in
the
budget?
Coming
up?
We
have
proposed
some
yes,
okay,.
C
Because
I
think
that's
something,
because
if
we
go
look,
I
mean
look
at
and
I
had
this
conversation
with
them.
Merrill
Evans
before
I
even
got
sworn
in,
is
that
when
GP
TMC,
which
I
still
use
it
acronym
because
it
took
me
ten
years
to
be
able
to
say
it
properly,
which
is
now
visit
Philadelphia,
you
know
when
they
got
started
over
25
years
ago.
C
We
really
didn't
have
any
type
of
hospitality
perspective
in
a
city
of
fidella
and
if
you
look
at
our
room
rental
rates
to
be
able
to
have
a
Philadelphia
hospitality
improvement
levy
that
we
have
now
to
go.
After
these
large
initiatives
in
the
city
we
wouldn't
be
evil
beneath.
We
would
not
have
been
able
to
have
that,
but
for
organizations
like
GP
TMC
and
the
convention,
Visitors
Bureau
being
able
to
work
collectively
together
to
really
market
the
city
and
so
the
same
perspective
on
the
business
side.
C
I'm
glad
you're,
saying
that
we'll
have
some
dollars
in
the
budget
or
a
summer
proposal
to
go
forward
with
that,
because
that
perception
is
reality
and
as
all
these
Millennials,
they
see
the
city
of
Philadelphia
they
hear
about.
What's
gone
that
house
we
have
to
prime
the
pump
and
continue
that
perception
to
clearly
make
it
a
reality
going
forward
which
ultimately
will
impact
our
general
fund
in
poverty
using.
F
Northeast
Amtrak
quarter
as
your
efforts
point
Philadelphia
asset,
wise
and
cost
wise
has
a
great
advantage
over
DC,
New,
York
and
Boston.
We
must
seize
the
moment.
This
is
our
time
and
we
must
make
sure
we've
got
the
taxes
and
the
talent
and
the
business
environment
to
seize
it.
And
basically,
what
we're
here
today
to
say
is:
we
must
continue
the
journey.
This
is
a
marathon
not
a
sprint,
going
in
the
right
direction,
not
fast
enough
and
we
all
must
be
growing
together.
F
D
You
I'm
Jeff
Weinstein,
the
executive
director
of
the
economy,
League
of
Greater
Philadelphia
good
afternoon
by
the
way
for
the
record.
Our
bond
rating
is
a
plus
in
most
categories
right
now,
which
is
pretty
good,
but
not
great.
It's
an
investment
grade,
but
a
well
above
junk
good
afternoon,
chairman
Johnson
other
members
of
the
committee.
Thank
you
for
the
invitation
of
year
today,
as
I
said,
I'm
Jeff
horn,
seen
on
the
executive
director
of
the
economy,
League
of
Greater
Philadelphia,
for
those
of
you
are
unfamiliar
with
the
economy
League.
D
We
are
a
hundred
and
nine
year
old,
nonprofit
civic
leadership
organization
that
produces
impactful
research
and
insight,
convenes
cross-sector
leaders
and
serves
as
a
civic
incubator,
to
devise
shared
solutions
to
our
region's
talent
challenges
and
our
real
wheel,
wheel,
houses,
our
education
and
talent,
development,
business
growth
and
job
creation
and
infrastructure.
So
those
are
the
places
where
we've
developed
a
deep
bench
of
expertise.
A
couple
caveats
I've
been
at
the
account
economy
league
for
exactly
three
weeks.
D
The
economy
League
has
also
not
done
research
on
tax
policy
issues
for
a
few
years,
but
has
a
long
history
of
insight
into
tax
policy.
However,
as
you
know,
many
of
you
know:
I
ran
the
controller's
policy
unit
for
five
years.
So,
what's
much
of
what
I'm
gonna
say
today
comes
from
work
done
in
those
years
and
should
not
be
considered
the
official
position
of
the
economy.
League,
that's
a
disclaimer.
That
said,
our
organization
has
a
highly
skilled
team
of
analysts
who
are
at
this
council's
disposal.
D
So
my
purpose
today
is
to
raise
a
few
questions
that
can
be
further
pursued
as
I
like
to
say:
Philadelphia
has
four
core
challenges:
jobs,
jobs,
jobs
and
schools.
Obviously
interdependent.
The
real
question,
in
my
mind,
is
what
role
Tax
Policy
plays
in
addressing
those
challenges.
So
my
key
points
today
and
I'm
not
going
to
read
this
whole
whole
thing
number
one.
Tax
policy
is
not
the
primary
driver
of
economic
growth
or
business
locations
decisions,
as
you
can
see
in
the
slides
that
we
put
together
the
primary
reason
for
domestically
location.
D
Taxes
are
pretty
far
down
in
every
survey
of
corporations
within
the
region.
It's
likely
more
of
a
factor,
but
it's
not
the
primary
driver,
as
worker
preferences
shift
towards
a
more
amenity,
rich,
easily
accessible
workplaces.
Philadelphia
has
a
compelling
value
proposition
I,
that's
what
what
Harold
was
was
just
getting
at
that
at
least
parsley
offsets
the
it's
higher
tax
burden
compared
to
suburban
locations.
We've
seen
this
manifest
itself
with
with
Vanguard
and
Bentley's
opening
gateway
offices
in
the
city.
D
They
want
access
to
talent
and
talent
wants
to
be
in
places
like
Center,
City
and
University
City.
That's
why,
as
councilman
Dom
said,
you
know,
we've
led
the
nation
in
millennial
attraction
right
people
talent
wants
to
be
here.
It's
amazing
to
me
having
gone
to
college
in
the
Boston
area
and
graduate
school
here
that
now
we
are
outperforming
Boston
in
terms
of
college
student
retention
to
give
a
little
plug
to
my
organization.
In
the
past,
the
the
organization
that
became
campus
Philly
was
sort
of
incubated
in
the
economy.
D
League
second
point
I
want
to
make
is
that
the
tax
burden
for
Philadelphia
residents
is
relatively
high
compared
with
the
pier
metros
and
is
not
a
plus
and
talent
attraction
for
our
increasingly
knowledge-based
economy.
So
we
we
come
in
at
about
about
fourth
for
for
a
family
of
earning
a
hundred
thousand
dollars
a
year.
D
So
that's
an
important
point,
third
and
and
and
very
relevant
to
the
real
meat
of
what
I
want
to
say
is
that
for
low-income
philadelphians,
the
household
tax
burden
is
among
the
most
regressive
nationally.
So
you
look
at
our
third
slide.
A
family
earning
twenty
five
thousand
dollars
per
year.
Philadelphia
is
far
and
away
number
one
in
terms
of
tax
burden
which
keeps
people
in
poverty.
The
volatility
of
our
revenue
streams,
as
I
think
we
all
know
dependent
largely
on
wages,
business
profits
and
consumption
present
significant
future
risks
during
our
next
economic
slowdown.
D
I
was
at
an
event
this
morning
with
some
economists-
and
you
know,
people
see
growth
for
the
next
few
years,
but
everyone
knows
recession
has
got
to
happen
at
some
point
and
we
have
essentially
no
reserve
funds
and
a
looming
school
district
budget
crisis.
So
there
are
things
we
have
to
prepare,
for.
There
are
many
ideas
to
address
some
of
these
shortcomings.
Now,
but
again,
despite
our
well
known
tax
structure
issues,
the
city
is
adding
jobs
and
growing.
So
on
the
plus
side,
we've
seen
job
growth
in
the
past
decade
were
over
700,000
jobs.
D
The
first
time
since
the
80s
population
is
up.
School
performance
is
paavo
positively,
but
there
really
are
two
or
maybe
three
different
Philadelphia's,
on
the
one
hand,
is
the
growing
dynamic
or
from
the
Delaware
River
to
40th
Street
Girard
to
Tasker,
which
we
might
call
Boston
adelphia
and
hopefully,
one
day
Boston
will
be
calling
it
it's
it's
growing
pieces,
a
fill,
a
Boston
or
something
in
this
part
of
town
educational
attainment
is
high,
unemployment
is
very
low,
incomes
are
high
property
values
and
thus
wealth
and
that's
important
are
steadily
rising
in
some
life
is
good.
D
In
Boston
adelphia,
it's
Paris
at
half
the
cost
in
this
part
of
the
city,
especially
on
its
edges.
People
worry
about
gentrification
about
the
rising
cost
of
housing,
forcing
historic
residents
from
their
homes,
but
the
much
larger
part
of
our
population
lives
in
what
we
might
call
Detroit
adelphia,
where
job
growth
is
anemic.
Educational
attainment
is
low,
the
unemployment
rate
is
high,
labor
force
participation.
A
very
important
indicator
is
low,
particularly
for
those
with
barriers
to
entry
into
the
labor
market.
D
Already
wealth
but
I
digress
for
the
better
part
of
two
decades.
We
have
focused
on
macro
factors
like
tax
policy.
Some
have
argued
that,
but
for
the
wage,
tax
we'd
have
tens
of
thousands
of
additional
jobs.
Others
have
argued
that,
but
for
the
Burke
we'd
have
tens
of
thousands
of
additional
jobs.
Maybe,
but
despite
our
anomalous
and
uncompetitive
tax
structure,
Philadelphia's
growing
we've
cut
the
wage
tax
responsibly.
In
the
past
decade,
we've
almost
fixed
our
broken
property
tax
assessment
system
and
we
exempted
the
first
hundred
thousand
dollars
of
business
income
from
Burke.
D
In
my
view,
before
we
go
further
with
so-called
tax
reform,
we
ought
to
do
a
deep
dive
into
the
impact
of
these
changes.
So
to
put
my
cards
on
the
table,
I'm,
not
one
who
believes
that
tax
Paul
as
a
panacea.
I
personally
think
that
micro
strategies
to
work
for
strategies
like
the
one,
the
city
unveiled
last
week,
which
the
economy
league
played
a
role
or
the
one
announced
by
university
city
district
in
University,
City,
Science,
Center
last
week,
or
growth
strategies
designed
to
leverage
the
purchasing
power
of
our
EDS
and
meds
institutions.
D
To
speak
to
the
Chairman's
point
about
our
Ed's
and
meds
institutions.
Being
these
islands
of
prosperity
and
seas
of
poverty
and
to
Councilman
Dom's
point
about
the
EDS
and
meds
institutions,
you
know
not
paying
certain
types
of
taxes,
Harold,
Epps
and
I
have
designed
this
thing
called
the
anchor
procurement
initiative
to
get
these
institutions
to
localize
more
of
their
procurement
dollars
to
create
jobs
for
people
in
the
neighborhoods
and
the
economy.
D
League
is
now
taking
that
project
over
looking
officially
launched
and
in
the
very
near
future,
with
support
from
these
institutions,
and
these
are,
in
my
mind,
better
targeted
to
address
the
very
real
structural
inequities
in
our
economy
than
tax
policy
changes.
That
said,
there
has
been
a
healthy
debate
over
the
past
decade,
about
which
components
of
our
tax
structure
are
holding
back
faster
growth.
Would
we
indeed
have
tens
of
thousands
of
new
jobs
if
you'd
only
load
the
wage
tax
faster?
More
dramatically?
Would
business
growth
have
been
more
robust?
D
Would
we
have
retained
more
startups
if
we'd
aggressively
lowered
one
component
or
another
Bert?
These
questions
have
surely
provide
fodder
for
a
cottage
industry
of
econometrics
modelers
for
quite
some
time.
I'd
say
this
for
the
record:
absolute
tax
rates
matter
much
less
than
relative
ones
relative
to
contiguous
jurisdictions
in
our
Metro
relative
to
peer
cities.
By
these
measures,
Philadelphia's
tax
structure
has
gotten
more
competitive,
partly
because
the
metros
raise
taxes,
we've
lowered
them,
so
our
tax
mix
has
three
fundamental
problems:
it's
heavily
dependent
on
volatile
revenue,
streams,
its
anomalous
and
uncompetitive,
both
regionally
and
nationally.
D
D
However,
the
tax
gap
is
shrinking
and
it's
regressive,
that
is,
its
burdens,
fall
on
entities
regardless
of
their
ability
to
pay,
partly
a
Pennsylvanian
problem
since
we're
a
flat
tax
state,
but
partly
due
to
the
types
of
taxes
rely
on.
Thus,
while
our
economy
is
built
on
a
pretty
stable
base
at
the
moment,
Ed's
meds
and
beds
in
Merrill,
this
is
a
favorite
phrase.
Our
tax
structure
is
not.
D
Some
of
my
peers
are
great
hospitals
and
universities
are
going
to
attract
top
talent
in
the
4%
wage
tax
levied
on
these
highly
paid
individuals
is
more
than
offset
by
the
great
value
proposition
that
is
contemporary
Philadelphia
Penn
competes
with
talent
for
Princeton,
Harvard
and
Columbia
all
in
places
where
the
our
overall
tax
burden
and
cost
of
living
is
much
higher.
So
to
say,
Bert
is
a
drag
on
growth.
I,
don't
think
anyone
doubts
that
more
specifically
I
think
the
evidence
suggests
the
net
income
side
of
Bert
is
the
core
problem.
D
One
specs
of
Penn
or
Jefferson
or
Drexel
post
doctoral
faculty,
decide
to
commercialize
their
research.
They
have
strong
financial
incentives
to
move
the
company
across
city
line
as
soon
as
it
gets
profitable.
In
a
subject
to
are
highly
anomalous
and
steep
6.4
percent
corporate
income,
tax
I
have
personal
stories.
I
could
tell
about
that.
You
know,
and
we've
created
all
these
fixes
to
try
and
avoid
that
we've
created
our
own
little
Cayman
Islands
Keystone
Opportunity
Zones,
which
are
useful,
but
there
are
there,
are
symptom
of
a
prop
of
a
problem
so.
D
Again,
we
have
no
no
rainy
day
fund.
We
have
a
looming
School
District
crisis,
so
we
need
to
be
responsible
with
how
we
deal
with
our
tax
issues.
You
know
some
have
argued
that
really
incremental
change
isn't
going
to
it
isn't
going
to
really
make
the
difference
that
may
be
so,
but
major
change
is
also
going
to
put
us
in
a
hole.
That's
too
deep
for
us
to
dig
out
of
any
time
quickly.
So
we
could
talk
about
fixes,
but
I
would
say
that
this
the
city
is
growing,
is
adding
jobs.
D
Workforce
strategy,
anchor
procurement,
stuff
business
development
programs
like
those
at
the
Enterprise
Center
and
many
others
in
this
city,
the
business
attraction
strategies
pursued
by
the
smart
folks
at
commerce
in
CI,
DC
I,
think
you
know
we're
moving
in
the
right
direction.
We
all
need
to
row
in
the
right
direction
and
I
echo
what
Harold
said
that
this
Amazon
bid
led
by
sylveon
and
Nevins,
and
a
lot
of
other
really
smart
people
has
made
the
city
kind
of
realize
that,
at
all
that,
everyone
has
to
run
in
the
right
direction.
D
I
I
I
What
I'd
like
to
do
is
stress
three
things
generally
about
tax
policy
and
and
then
apply
those
principles
if
I
could
to
the
Philadelphia
setting
and
give
you
perhaps
a
sense
of
where
we
stand
against
the
backdrop
of
economic
performance
is
about
as
evaluated
by
economists.
More
generally,
I'll
begin
by
saying
what
I
think
we
all
know
is
that
the
city
of
Philadelphia
nationally
and
both
regionally
is
one
of
the
highest
tax
locations
in
the
area
so
competitively.
I
This
is
a
big
issue
for
us,
but
I'm
also
very
sensitive
to
the
comments
that
have
been
made
earlier
about
the
fact
that
not
only
do
we
need
to
think
about
our
revenue
side,
but
we
need
to
think
about
our
service
side
and
it's
a
bet.
It
will
be
a
balancing
act
that
will
have
to
have
to
play
I.
Take
the
heart,
councilman
greens
comment
about
wanting
to
be
attractive
to
customers
and
in
some
ways
what
the
economists
will
do
with
tax
policy
is
is
to
turn
it
in
the
price
of
coming
into
the
city.
I
Think
of
it
as
an
entry
fee,
if
you
will
for
coming
into
the
city
and
what
you'd
like
to
do,
is
have
low
costs
and
high
quality
services
in
the
and
the
side
of
the
equation.
That
I'm
going
to
talk
about
will
be
the
cost
side,
the
tax
side,
so
principle
number
one
which
I
think
is
the
obvious
one
is
there.
Alas,
no
perfect
tax
every
tax
is
going
to
have
a
consequence,
whether
it's
a
tax
on
property
attacks
on
jobs,
a
tax
on
sales.
I
It
will
have
implications
for
how
individuals,
businesses
and
families
make
their
decisions,
and
so
the
question
is
how
how
much
did
these
decisions
change?
Ultimately,
in
response
to
the
tax,
households
and
consumers,
we're
going
to
be
interested
in
what
happens
as
we
tax
them?
What
happens
to
their
consumption,
particularly
their
housing
consumption?
When
we
look
at
the
property
tax
and
their
work
decisions,
so
these
will
be
the
focus
for
taxes
on
families.
When
you
tack,
businesses
there'll,
be
two
big
implications.
I
I
do
agree
with
the
comment
made
by
my
colleague
earlier
about
the
fact
that
in
comparing
cities
against
Chicago
versus
Philadelphia
of
Baltimore
versus
Philadelphia,
taxes
won't
be
on
the
top
of
the
list.
What
firms
are
going
to
be
looking
at
is
access
to
quality
of
labor?
Can
I
move
my
goods
and
services
quickly?
I
What's
the
highway
and
D
de
Amazon
stress
on
the
transit
network,
I
think
will
be
the
main
things,
but
once
the
decision
is
to
move
into
a
region
and
by
region,
I
would
move
us
and
think
about
this
from
a
firm
point
of
view,
as
the
East
Coast
corridor,
we're
competing
against
Washington,
d.c,
Baltimore,
New,
York
City
and,
to
some
degree
Boston,
particularly
on
the
meds
and
Ed's.
For
so
a
region
is
not
just
for
a
resident
point
of
view.
I
Clearly
will
be
the
the
five
County
in
New
Jersey
regions,
but
from
the
point
of
view
of
firms,
I
think
we
want
to
think
of
the
East
Coast
corridor
as
really
our
competitive,
our
competitive
alternatives,
and
there
are
actually
we
rank
pretty
poorly
in
terms
of
our
tax
rates
compared
to
others.
So
the
question
is:
how
can
we
adjust
this
tax
system?
Clearly,
we
don't
want
to
drive
it
down
on
business,
drive
it
to
zero,
because
the
consequences
for
services
are
going
to
be
significant.
We
were
trying
to
balance
the
costs
and
the
benefits.
I
So
what
I'd
like
to
do
is
give
you
a
sense,
at
least
of
what
economists
have
said
about
the
relative
costs
of
using
different
taxes
and
the
top
of
the
list
in
terms
of
the
one
that
an
economist
would
feel
is
the
most
damaging
to
the
performance
of
the
business
side
of
the
equation
will
be
the
non-resident
wage
tax.
What
this
tax
does
effectively
is
gets
shifted
back
onto
onto
labor
and
the
cost
of
labor
for
businesses.
I
I
If
you
look
at
a
map
and
ask
the
question
what
suburbs
have
a
an
income
tax
they're
not
next
to
Philadelphia,
because
obviously
that
gives
them
a
competitive
advantage
not
to
have
that
tax,
and
so
you
know,
if
you
have
an
offset
I
pay,
the
Philadelphia
non-resident
tax.
Well,
I'd
get
a
1%
relief
if
my
suburban
community
had
a
1%
income
tax,
so
they're
not
going
to
do
that.
I
So
what
you
do
is
you
really
do
see
the
incentive
effects
of
the
non-resident
tax
here
pretty
directly
and
it's
ultimately
borne
by
the
labor
costs
of
the
firm,
and
so
what
that
does?
Of
course,
if
labor
is
60,
70
percent
of
the
cost
of
the
business
and
particularly
service
businesses,
then
you're
really
going
to
drive
up
your
cost.
That's
going
to
reduce
your
profits
and
it's
going
to
make
the
location
in
the
city
much
less
attractive.
I
So
my
work
on
the
impact
of
the
wage
tax
and
in
particularly
the
non-resident
wage
tax,
suggest
it's
been
one
of
the
main
drivers
over
the
years
for
the
loss
of
our
jobs.
Happily,
we've
been
lowering
it
and
that's
been
I.
Think
an
important
source
of
at
least
our
ability
to
compete
and,
in
some
sense,
also
increase
our
job
performance
recently.
So
the
worst
of
the
list
is
the
non-resident
wage
tax.
I
If
you
wanted
to
put
a
price
tag
on
that,
and
I
won't
bore
you
with
the
details,
it
would
be
for
every
dollar
you
raise,
you
basically
lose
36
cents
in
profits,
jobs
and
and
an
economic
activity
within
the
city.
So
if
you
thought
of
the
price
you're
going
to
be
paying
a
dollar
36
for
a
dollar
of
revenue,
with
that
particular
tax,
next
in
the
lists,
are
going
to
be
property
taxes
on
new
construction.
This
is
a
very
elastic
decision.
I
Do
I,
put
in
my
household
or
do
I,
bring
my
construction
activities
into
the
city
or
go
to
the
suburbs,
and
there
the
wage
to
earth
I'm.
Sorry,
the
property
tax
will
have
a
fairly
fairly
strong
effect,
and
so,
if
I
were
gonna,
put
a
marginal
price
on
that
it
would
be
on
the
order
of
a
dollar
20
to
a
dollar
25
cents
for
raising
a
dollar
of
revenue.
Next
in
the
list
is
the
gross
receipts
tax.
I
It
is
particularly
damaging
for
new
firms,
because
it's
a
tax
on
revenues
or
cashflow,
not
a
tax
on
profits,
and
so
you've
got
a
startup
company.
That's
trying
to
put
it
together
has
good
cash
flow,
but
no
profits
just
yet
they're
still
gonna
pay
this
tax.
So
one
of
the
drivers
of
and
one
of
the
big
advantages
for
new
firms
in
the
city
of
Philadelphia
is
the
gross
receipts.
I
Tax
and
I
estimate
the
the
marginal
cost
of
that
is
around
20
cents
on
the
dollar,
so
I
cost
I
if
I
raise
$1
I've
cost
cents,
the
economy,
a
dollar
20
cents.
In
that
regard,
we
move
into
the
better
taxes
that
the
retail
sales
tax
is
not
that
bad,
it's
around
7
cents
on
the
dollar
and
the
tax
that
in
indeed,
was
the
foundation
for
the
recommen
nations
that
mr.
Epps
mentioned
with
regard
to
the
tax
Commission's
recommendations
to
to
raise
the
property
and
lower
the
wage.
I
So
that's
not
going
to
have
a
big
effect.
I
do
want
to
emphasize
this
point,
though,
that
residents
are
gonna
pay.
It
turns
out
the
costs
are
about
a
dollar
five
cents.
So
they're
gonna
pay
a
dollar
five,
but
you
better
give
them
back
a
dollar
five
or
better
in
benefits.
Otherwise
they
will
relocate.
So
that's
the
benefit
cost
comparisons
that
families
are
going
to
be
doing
and
that'll
get
to
the
points
that
we've
been
talking
about
about
the
quality
of
schools
and
quality
of
services.
I
So
all
of
this
in
the
mix,
I
think,
is
important.
I
think
where
I
come
down
is
I
want
to
move
towards
those
taxes
that
have
low
costs
per
dollar
raised,
and
that,
for
me,
would
be
moving
away
from
the
non-resident
tax
and
the
taxes
on
new
property
and
towards
things
and
the
gross
receipts
and
towards
a
resident
attacks
on
existing
property,
not
always
possible
to
make
these
distinctions,
but
on
existing
property
and
on
resident
taxes.
I
That
would
be
my
move
in
the
mix
when
I
teach
this
stuff
to
students,
they
typically,
you
know,
I
give
them
that
all
the
numbers
and,
of
course
they
they
sort
of
dutifully
write
them
down
and
then
forget
them
and
I
want
them
to
leave
the
class
with
remembering
something
that
maybe
will
stick
with
them.
And
for
me
the
message
is
resident
taxes
for
resident
services,
business
taxes
for
business
services
and
what
that
approximates
is
a
benefit
principle.
So,
if
I'm,
a
resident
and
I
pay,
a
tax
I
want
to
see
benefits
as
compensation.
I
If
I'm
a
business
I
want
to
pay
a
tax
and
see
benefits
as
compensation,
and
so
I
want
to
link
my
taxes
as
closely
as
possible.
My
resident
taxes
to
quality
of
education,
my
business
taxes
to
the
provision
of
business
services,
that
kind
of
tying
I
think
is
going
to
really
help
us
in
a
competitive
environment,
I'm.
Quite
supportive
of
this
proposal.
I
That's
now
before
the
state
legislature,
the
the
levy,
Sweeney
proposal
on
being
able
to
separate
the
resident
and
and
commercial
tact
property
taxes,
I
think
it'll,
give
us
another
degree
of
freedom
and
being
able
to
design
a
competitive,
competitive
tax
structure.
I'll
make
just
one
very
fast,
quick,
ending
comment:
fairness
is
important
and
I.
You
know
I
think
the
the
assessment
initiative,
the
AVI
initiative,
was
a
big
step
in
the
right
direction.
I
think
we
want
to
have
broad-based
taxes
rather
than
targeting
particular
things
and
and
uniform
tax
rates.
I
I
think
it's
very
difficult
for
a
city
to
have
aggressive
progressive
taxes,
as
New
York
City
is
finding
out
at
this
moment.
Progressive
taxes
by
cities
is
is
really
not
an
economically
feasible
strategy,
but
uniform
rates,
I
think
is
certainly
feasible
and
my
recommendations,
I
think,
would
be
from
a
from
a
competitive
point
of
view.
With
respect
to
business,
is
the
non-resident
gross
receipts
and
towards
property
taxation
and
leave
it
and
with
the
splitting,
leave
it
to
you
to
make
this
difficult
balancing
act
that
will
involve
both
jobs
and
efficiency,
but
also
fairness
as
well.
A
I
A
D
I
K
Marc
steer
I'm
the
director
of
the
Pennsylvania
Budget
and
Policy
Center,
councilman
Johnson
and
members
of
the
committee.
Thank
you
for
inviting
me
to
testify
today,
there's
much
to
be
said,
both
positive
and
negative,
about
the
tax
reform,
commission
and
its
recommendations
and
their
implementation,
but
I
want
to
focus
on
the
central
thrust
of
those
recommendations,
which
was
a
proposal
to
make
Philadelphia
stack
structure
normal,
that
is,
to
make
a
radical
change
in
its
historical
tax
system.
K
In
rich,
relatively
more
revenue
comes
from
wage
and
business
taxes
and
revenue
relatively
less
from
property
taxes
in
other
large
cities.
The
Commission
argued
for
substantial
cuts
of
what
was
then
called
the
gross
receipts
tax
and
the
way
shacks
and
held
that
economic
job
and
wage
growth
generated
by
those
cuts
would
lead
to
higher
property
values
and
a
property
tax
rates
were
not
reduced.
Higher
property
revenue
tax
revenues
with
the
result
of
City
revenues
ISM,
as
the
sum
would
be
higher,
the
Commission,
came
into
an
existence
at
a
moment.
K
First,
we
pointed
to
an
enormous
body
of
empirical
that
casts
doubt
on
the
impact
of
relatively
small
variations
in
tax
policy
on
the
decisions
of
businesses
to
locate
in
one
jurisdiction
or
another.
This
conclusion
may
seem
counterintuitive,
as
just
everyone
seems
to
know
that
taxes
are
really
important
in
the
decisions
of
business
people,
yet
that
intuitive
conclusion
forgets
some
key
features
of
economic
life
that
once
one
stops
and
thinks
about.
It
should
also
seem
intuitive
taxes
are
a
cost
of
doing
business.
K
Businesses
pay
some
taxes,
no
matter
where
they
locate,
but
for
most
businesses
taxes
are
a
much
smaller
cost
of
doing
business
than
labor
costs
and
for
manufacturers,
the
cost
of
raw
materials
and
energy.
The
best
research
we
have
suggests
that
all
state
and
local
taxes
together
account
for
only
1.9
percent
of
total
business
costs.
That's
not
nothing,
but
it's
not
an
overwhelming
factor.
K
Second,
we
point
out
15
years
ago
that
the
econometrics
studies,
most
often
cited
in
support
of
cutting
wage
and
business
taxes,
were
flawed,
Stephen
hurt
Sandberg,
then,
and
now
the
executive
director
of
the
Keystone
Research
Center
wrote
in
220
2002.
The
flaw
is
that
in
seeking
to
explain
what
drives
changes
in
the
tax
base,
a
consultant,
others
do
not
consider
any
other
factors
besides
tax
changes
that
might
be
expected
to
impact
the
tax
base.
K
If
this
excluded
factors
are
correlated
with
changes
in
taxes,
including
the
excluding
them
from
the
model,
can
result
in
tax
changes
appearing
to
have
a
bigger
impact
than
they
actually
do.
There's
really
no
reason
to
doubt
that
many
of
these
factors
affected
Philadelphia's
economic
growth.
During
the
time
the
wage
and
business
chances
were
increasing,
some
of
the
most
Philadelphia
specific,
including
Philadelphia's,
greater
independence
on
manufacturing
jobs
relative
to
other
cities.
K
The
racial
strife
in
our
city,
the
historically
high
rate
of
crime
and
Philadelphia
compared
to
other
cities
other,
were
general
and
affected
urban
areas
to
one
degree
another,
including
redlining,
in
black
neighborhoods
white
flight
from
cities,
the
decline
of
federal
investment
in
cities
and
the
rise
of
investment
in
suburbs.
All
these
factors,
and
no
doubt
others
helped
to
create
a
cultural
mood
in
America
that
held
up
suburban
life,
Azamat
ideal
that
ideal
itself
became
a
further
barrier
to
economic
growth
in
cities
like
Philadelphia
in
the
60s
and
70s
and
80s
in
recent
years.
K
However,
that
ideal
has
become
overcome
by
another
cultural
shift,
especially
among
Millennials
and
retiring
baby
boomers
councilman
Dom
pointed
to
some
of
the
evidence.
A
few
minutes
ago.
The
arts,
culture,
restaurants
and
streetscapes
of
our
cities
have
taken
on
a
whole
new
appeal
and
all
the
attractions
of
urban
life
had
multiplied
as
the
population
of
our
urban
areas,
including
Center,
City
and
nearby
neighborhoods,
take
off
now
there's
an
underlying
economic
basis
to
this
new
trend
in
the
growing
fields
of
healthcare,
education
and
technology.
K
Personal
interaction
is
extremely
important
and
that's
made
cities
economically
more
attractive
and
that,
in
turn,
has
created
a
whole
new
cultural
mood
about
cities
that
Philadelphia
has
been
growing
much
faster
in
recent
years,
despite
relatively
small
changes
in
taxes
suggest
that
the
road
taxes
play
has
always
been
overestimated
and
that
these
cultural
factors
and
and
mature
took
material.
Economic
factors
based
on
technology
have
been
far
more
important
to
these
two
points
we
made
15
years
ago.
I
want
to
add
three
more
quickly
today.
K
One
is
that
there's
some
reason
to
believe
that
the
proponents
of
making
Philadelphia's
tax
structure
more
normal
may
have
had
a
totally
backwards
to
the
extent
the
taxes
play,
a
role
in
stimulating
or
stifling
job
growth,
Philadelphia's,
relatively
low
property
values,
property
tax
and
housing
costs
may
be
an
advantage,
not
a
disadvantage.
This
is
true
for
two
reasons.
First,
property
taxes
are
likely
to
be
as
great
or
greater
burden
on
economic
development
than
business
taxes
or
wage
taxes.
After
all,
a
new
businesses
may,
as
mr.
K
Angier
point
I'll,
not
pay
profit
shots,
they
do
create
the
gross
receipts
tax,
but
they
also
pay
property
taxes,
whether
they're,
profitable
or
not.
This
claim
is
supported
by
a
fasting
report.
Last
year
by
Michael
mazzaroth
and
Michael
Leachman
of
the
Center
for
Budget
and
Policy
Priorities
retreats
to
conclusions
about
the
source
of
new
jobs.
K
The
vast
majority
of
jobs
are
created
by
businesses
that
start
startup
or
are
already
present
in
a
state
or
locality
not
by
the
relocation
or
branching
to
a
stable
Calla
tea
by
out-of-state
firms
and
during
periods
of
healthy
economic
growth,
growth
startups
and
young.
Fast-Growing
companies
are
responsible
for
most
jobs.
What
we
need
to
do
is
make
Philadelphia
an
attractive
place
for
startups
and
new
businesses
and
whirring
much
less
about
our.
Whether
people
want
to
move
into
the
city
a
rather
than
existing
businesses.
K
One
rule
move
into
the
city
and
property
tax
rates
are
very
important
in
those
decisions,
because,
again
those
are
taxes.
The
businesses
pay,
whether
making
profits
or
not.
Now
you
do
low
property
values
and
taxes
contribute
directly
to
job
growth.
They
also
account
for
one
of
the
other,
widely
recognized
factors
that
makes
Philadelphia
an
attractive
place
to
live,
especially
for
Millennials
who
have
we've
heard,
have
been
coming
here
in
large
numbers
and
staying
here,
and
that's
the
lower
cost
of
housing
than
in
New
York,
Boston
and
Washington
DC.
K
It
may
be
that
Philadelphia's
unique
tax
structure,
which
many
of
blamed
for
the
decline
in
manufacturing
other
jobs
turned
out
to
make
our
city
well-suited
for
taking
advantage
of
the
cultural
and
economic
shift
back
to
the
cities.
It
would
be
a
terrible
ironing
of
history
after
this
moment
a
continued
effort
to
cut
wage
and
business
taxes
and
raise
property
tax
revenues
undermined
rather
than
stimulated
economic
growth
in
the
city.
K
Another
point
I
want
to
make
that's
new,
is
that
any
consideration
of
tax
policy
should
pay
more
attention
to
distributional
effects
than
the
tax
reform.
Commission
did
the
shift
from
wage
and
business
taxes
to
property.
Taxes
was
sometimes
pointed
out
by
some
people
to
have
a
negative
distributional
effect
them
in
that
would
harm
low
income
families
more
than
high-income
families.
I,
don't
know
that
anyone's
ever
really
studied
this
in
detail,
but
as
we
rethink
the
TAT
reforms,
commission's
recommendations,
I
think
it's
something
that
needs
to
be
considered.
K
This
whole
idea
of
shifting
our
taxes
to
make
Philadelphia
Main
look
more
normal
may
actually
hurt,
although
akin
residents
in
a
very
unfortunate
way.
Finally,
I
want
to
make
a
last
point
to
which
I
cannot
do
justice
today,
which,
but
simply
that
we
have
a
lot
of
alternatives
to
economic
growth
strategy
and
job
creation
strategy
that
weren't
on
the
table.
15
years
ago,
councilman
greens,
been
you
know,
very
aggressive
and
pointed
out
to
the
compressor
complexity
of
starting
a
business
year
and
addressing
those
that's
an
important
strategy.
K
The
procurement
strategy,
Jeff
Weinstein
talked
about
is
really
important.
I
think
count.
Mayor,
Kenney
and
council
has
been
recognizing,
probably
the
most
important,
long-term
growth
strategy
for
the
city,
which
is
to
invest
in
pre-k
and
K
to
12
education,
while
the
research
that
attributes
variations
in
economic
growth
to
small
changes
in
taxes
is
not
that
strong.
The
research
that
points
at
the
close
connection
between
levels
of
public
investment
and
education
and
economic
growth
in
fact,
is
very
strong.
K
Another
economic
development
strategy
we
ought
to
be
considering
and
adopting
here
to
a
greater
extent,
is
investing
more
in
our
lagging
commercial
corridors.
This
strategy,
which
New
York
used
to
great
effect,
recognizes
there's
a
lot
of
buying
power
even
in
low-income
communities,
but
many
of
our
commercial
quarters
are
still
suffering
from
disinvestment
that
took
place
decades
ago.
K
A
higher
density
development
would
have
a
number
of
beneficial
effects
in
the
city.
It
would
keep
housing
costs
from
spiraling,
even
as
property,
values
and
property
taxes
continue
to
increase.
If
combined
with
inclusionary
zoning
policies
that
condition
higher
density
development
on
the
bridging
of
affordable
housing,
it
would
address
the
gentrification
problems
we
see
in
many
neighborhoods.
K
This
is
a
long,
a
long
subject,
as
the
professor
of
mine
used
to
say
and
I
can't
go
into
a
detail
here,
but
we
will
be
putting
our
paper
in
the
next
month
or
two
that
addresses
this
strategy
of
using
high
density
development
and
building
Philadelphia
as
a
way
to
generate
more
jobs
and
Mark
and
I'ma
growth.
Thank
you.
A
You
know
you
totally
remove
the
people
who
always
live
in
a
particularly
neighborhood,
because
they
can't
pay
the
property
taxes,
but
I
did
hear
you
curve
and
say
if
the
revenue
from
the
zoning
up
development
project
could
be
put
back
into
the
actual
community
to
kind
of
help
stabilize
the
neighborhood.
You
have
a
mixture
of
individuals
who
always
in
the
neighborhood
with
new
residents
and
also
maintain
the
actual
I,
might
call
it
enable
a
culture
up
the
neighborhood
to
kind
of
keep
the
diversity
there.
A
I
think
what
benefit
everyone,
but
I
would
love
to
have
that
continued
conversations.
That's
kind
of
like
the
the
crux
of
my
existence,
with
your
changing
district,
which
I
welcome,
but
nevertheless
is
one
of
those
key
areas
that
we
try
to
find
ways
in
terms
of
inclusionary
housing
in
different
ways.
Around
public
policy
there
are
people
stay
inside
their
home,
but
also
welcomed
the
new
development
that
comes
along
with
it
good.
K
Curtis
sure
yeah
I
think
you
know
I've
gentrification
issue.
That's
long
concerned
me
and
I've
walked
neighborhoods
and
talked
to
folks
and
gender
frying
neighborhoods
and
people
always
said
I,
don't
mind.
New
people
coming
in
I
just
want
to
be
able
to
take
advantage
of
the
new
development
and
I
think
allowing
some
up
zoning
increased
density,
but
directing
those
revenues
back
to
lap,
2,
community
amenities
and
maybe
even
some
kind
of
homestead
provisions
to
taxes
lower
and
for
the
people
who've
been
living.
Those
communities
could
could
be
a
win-win
for
everyone
are.
J
To
thank
you
all
for
your
very
informative
testimony
and
let
you
know
how
much
I
respect
your
knowledge
around
this
issue.
Dr.
Ayman
you've
been
a
real
think-tank
for
Council
for
many
many
years
around
the
issue
of
taxes
and
know
that
I
appreciate
that
as
well.
My
office
has
leaned
on
you
in
the
past
for
the
few
tax
measures
we
put
forth.
I
What
one
could
do
with
a
proposal
like
that
is
think
of
a
land
tax,
because
the
high
density
comes
in
the
value
of
the
property
goes
up
tax,
the
incremental
increase
in
property.
It
won't
affect
the
final
development,
but
it
will
be
resources
available
for
the
community
and
the
neighborhood.
If
that's
where
you
choose
to
spend
them.
I
The
on
the
business
side,
I'm
a
big
fan
of
user
fees,
big
fan
of
user
fees,
so
a
firm
locates
and
the
firm
is
using
trash
charged
them
for
the
trash
pickup
service,
a
firm
locates
and
the
firm
needs
say
extra
police
services
charge
them
for
the
extra
police
services,
in
other
words,
tries
carefully
as
you
can
to
charge
the
business
for
the
specific
services
that
the
business
is
using.
Clearly
we
do
that
with
water
and
and
such
the
tough
ones
are
the
the
employees
of
the
business
use
the
city
roads
and
drive
in.
I
I
There
is
the
issue
and
the
controversy
about
the
billion
dollar
subsidy
to
Amazon,
not
favor
of
that,
but
tax
abatement
strategies
on
particular
attractive
business
opportunities
is
certainly
something
that
I
don't
personally
have
objection
to
tax
abatement
strategies
for
each
and
every
property.
I
think
is
sort
of
nutty
and
very
confusing,
but
I
think
certainly
targeted
tax
strategies
for
for
projects
that
look
really
attractive
and.
J
I
Would
stress
this
projects
that
have
widespread
benefits?
What
economists
call
a
glamor
Asian
benefits?
So
if
the
project
is
attractive
but
then
help
stimulate
businesses
around
you,
that's
a
real
plus,
and
that
you
know
the
neighborhood
procurement
procure
Philadelphia
kind
of
strategy,
I
think
is
very
attractive
as
well.
Wow.
J
D
E
Very
much
first
of
all,
professor
Monsanto
pleasure,
to
see
you
I
was
a
student
in
one
of
your
classes
back
at
ten
back
in
the
day
for
a
while.
So
it's
always
great
to
see
you
and
you
know,
appreciate
the
wisdom
that
you
brought
in.
I
I'm
also
you
know,
struck
because
struck
by
some
of
your
testimony.
I
think
that
the
Councilwoman
alluded.
It
alluded
to
it
as
well,
by
the
idea
that
business
and
residential
life
are
somehow
separated
and
I.
E
Think
that
you
know
you,
you
get
a
little
bit
to
the
complexity
of
that
when
you
talk
about
like
well
what
if
we
were
to
eliminate
the
non-resident
wage
tax
structure,
that
would
then
push
us
towards
a
user
fee.
But
then,
when
you
start
to
think
about
the
ways
in
which
businesses
actually
use
our
city,
including
transit,
they
certainly
rely
on
our
school
system
to
educate
their
future
employees
and
labor.
E
They
will
more
than
likely
hang
out
at
a
park
for
lunch
and
utilize
that
that
crime
matters
Public
Safety
and
the
use
of
a
fire
department
and
our
city
services.
It
becomes
almost
impossible
to
really
flesh
out
the
idea
that
somehow
residents
and
business
life
is
separated,
so
I'm
I'm
wondering
you
know
about
teasing
that
out
at
some
point
we
have
some
great
people
in
this
room
in
particular,
who
are
business
leaders
who
are
devoted
to
the
quality
of
residential
life
in
the
city
of
Philadelphia
and
I
think
that
they
recognized
how?
E
E
So
you
know
like
I,
do
want
I
value
this
conversation
so
much
and
I
think
it's
very
complex,
but
I
do
hope
that
there
is
an
attentiveness
about
how
business
life
and
residential
quality
of
life
should
not
necessarily
be
separated.
It's
hard
to
do
that
with
taxes,
but
I
think
we're
trying
to
draw
some
sort
of
a
we're
wanting
to
draw
some
line
better.
But
yeah
did
you
want
to
speak
to
that
just.
I
Just
really
quickly,
I
absolutely
agree
with
one
clarifying
comment
and
then
I
really
do
agree
with
your
comment
about
the
fact
that
the
non-resident
is
enjoying
the
police
officers
from
8:00
to
6:00
in
the
in
during
the
day
and
and
the
the
non-resident
worker
is
getting
services
and
the
question
is
shouldn't:
they
not
pay
for
them,
and
the
answer
is
yes,
they
should
pay
for
them
and
then
the
question
is:
how
do
you
get
them
to
pay
for
it?
You're
not
gonna
have
a
little
fee.
Are
you
going
out
to
the
park?
I
Give
me
a
dollar
you're,
not
gonna.
Do
that
I
think
the
real
issue
you're,
never
gonna
nail
down
the
exact
number.
So
my
literally,
if
you
came
to
me
and
said,
give
me
a
non-resident
way.
We
don't
want
it
to
be
zero.
I
do
not
want
the
non-resident
wage
tax
to
be
zero.
You
say
to
me,
give
me
a
number
I
gotta
make
policy,
that's
your
job.
I'd
say
one
percent
okay,
and
so
what
does
that
mean?
A
person
who's?
I
Making
a
hundred
thousand
dollars
contributes
a
thousand
dollars
a
year
towards
city
services,
which
has
police
officers,
maintenance
of
parks,
picking
up
the
trash,
etc,
etc.
It's
the
three
extra
three
thousand
dollars
that
becomes
a
deterrent
in
some
sense,
for
the
firm
being
here
and
so
I.
You
know
a
1
percent.
If
you
ask
me
to
pick
a
target,
I
would
say:
one
percent
is
probably
not
going
to
have
any
real
consequences
for
firm
location
and
would
contribute
to
the
kind
of
user
fee.
E
I
No,
absolutely
no
absolutely
I,
think
yeah
I
think
you
know
my
proposals
are:
if
I
could,
if
I
could
do
it,
I
would
say:
keep
the
budget
fixed
and
then
alter
the
mix
of
taxes
in
a
way
that
lowers
the
cost
of
every
dollar
that
you
raise
so
move
away
from
the
36
cents
tax
and
move
towards
those
taxes
that
are
closer
to
a
dime.
Yes,.
E
My
home,
yeah
and
I
think
that
you
know
negotiating.
That
line
is
some
of
the
things
that
are.
There
are
multiple
proposals
that
are
out
there,
we're
certainly
exploring
it
I
do
think.
The
uniformity
clause
in
Pennsylvania
does
have
an
issue
for
us.
It's
why
you
see
so
many
different
tracts
structures.
You
know
no
one
loves
the
UN
no
tax,
but
frankly
we
need
a
school
business
tax,
and
that
is
exactly
what
that
thing.
E
Is
it's
a
tax
on
business
recognizing
that
businesses
earn
more
money
on
than
a
resident
and
that
money
goes
100%
into
our
public
schools.
So
it's
important
for
us
to
like
recognize
that
I
think
Jeff
said
this
really
well.
Mr.
Hornstein
said
this
really
well
that
we
have
both
a
city
and
a
state
issue
and
I
think
some
proposals
are
out
there
trying
to
address
some
of
that.
I
did
want
to
ask
a
little
bit
about
you,
know:
evolution
of
taxes,
so
we
currently
have
a
federal
administration
that
is
in
love
with
you
know.
E
The
idea
of
the
trickle-down
theory
of
you
know
30
40
years
and
firmly
believes
that
a
massive
tax
cut
that
is
has
gone
through
at
one
and
a
half
trillion
dollars
will
result
in
massive
benefits.
To
folks.
Like
me,
who
has
three
kids,
you
know
trying
to
put
two
of
them
through
college
and
you
know
I'll
see
how
this
affects
me
over
the
next.
You
know
10
years
of
my
life,
but
you
know.
Similarly,
we
have
a
tax
of
8
program
in
Philadelphia,
that
is
two
decades
old.
E
Our
city
has
evolved
and
changed
and
grown
I
think
there
is
nothing
ever
wrong
with
any
type
of
specific
proposal
or
any
idea
like
I,
don't
want
to
disparage
any
of
those,
but
I
do
think,
there's
a
issue
when
we
get
wedded
and
stuck
in
ideas
that
were
built
for
cities
decades
ago
cities
evolve.
Taxation
involves
community
ball,
people's
ideas
of
what
they
want
out
of
life
evolve
and
I'm
wondering
if
you
could
offer
some
solutions
or
some
perspectives
on
how
you
might
improve
or
alter
or
expand
on
the
city's
current
tax
abatement
program.
I.
I
As
you
implied
and
I
was
here
when,
when
the
whole
system
went
into
effect,
there
were
properties
that
were
half
built
sitting
in
the
city
and
nobody
finding
the
wherewithal
to
go
ahead
with
them.
I
think
of
the
Rittenhouse
hotel
on
Rittenhouse
Square,
which
was
a
huge
black
eye
for
the
city.
Bateman's
made
that
possible
made
finishing
that
project
possible.
It
was
a
targeted
strategy
for
a
targeted
problem
and
that's
the
way
I
would
hope
we
would
use
abatements.
You
know
not,
as
it's
not
everybody
walk
in.
Tell
me
a
story.
I
E
I
That's
my
yeah,
that's
my
understanding,
but
I
defer
to
your
expertise
on
the
policy
I.
It
seems
to
me
that
the
right
thing
to
do
generally
is
treat
everybody
as
an
equal
player,
uniform
tax
rates
for
all
players.
Unless
you
can
give
me
a
compelling
reason,
yeah
from
an
economic
point
of
view,
either
fairness
or
otherwise,
homestead
exemptions,
fairness
or
economic
development
strategies,
a
particularly
unique
opportunity
to
attract
a
firm.
I
But
those
are
I
would
argue.
Rare
events,
not
common
events
in
a
tax
structure
that
I
would
prefer.
So
I
would
like
to
see
great
uniformity,
I'm
happy
to
have
with
the
levy
Sweeney
proposal
differential
rates
for
business
and
for
residential
property.
I
think
that's
useful,
but
basically
keep
things
as
even
and
as
flat
a
rate
structure
as
possible,
but.
E
I
Exactly
I,
and
do
you
want
it?
You
don't
want
to
negotiate
with
everybody.
I
mean
that
is
impossible,
so
when
deed
negotiate
when
when
the
opportunity
looks
particularly
unique
and
special
and
rare
yeah
I
have
no
problem
with
negotiating
with
big
players.
But
you
back
to
my
comment
earlier
for
counsel.
Murano
Brown
is
that
you
better
show
me
something
bigger
than
the
dollars
I'm
going
to
give
you
you're
gonna,
show
me
a
glamour.
Asian
a
benefit,
a
neighborhood
gain
that
in
the
aggregate
exceeds
the
dollar.
I
I
gave
you
you
better,
get
me
back
a
dollar
20,
30
40
cents
in
jobs
and
that
in
home
value
improvement
in
neighborhood
improvements
as
a
return
for
that
and
that
do
I
know
that
for
everybody,
I
don't
but
do
I
know
that
for
specific
targeted
projects,
well
I'll
get
down
and
do
the
work
and
try
and
figure
it
out.
Thank.
E
A
O
Yeah
good
afternoon,
my
name
is
Jerry
Sweeney
I'm,
president
and
CEO
of
Brandywine,
Realty,
Trust
and
I.
Thank
the
committee
for
giving
me
an
opportunity
to
testify.
Today.
Brandywine
is
a
publicly
held
real
estate
company,
with
over
two
billion
dollars
invested
in
Philadelphia
and
over
three
billion
dollars
invested
in
the
Commonwealth.
We
were
also
the
largest
donor
of
commercial
property
in
Philadelphia,
controlling
over
50%
of
the
truck
class.
O
Brandywine
is
also
a
member
of
the
historically
unique
collection
of
organizations
known
as
the
Philadelphia
Growth
coalition,
which
is
a
group
of
Labor
business
and
civic
organizations
organized
around
one
unifying
goal,
and
that
is
simply
to
grow
jobs
in
Philadelphia.
The
city
has
made
great
progress
in
recent
years.
Our
job
growth
has
turned
positive.
We're
experienced
some
population
growth
and
beginning
to
lay
the
foundations
to
deal
with
issues
such
as
inclusive
growth,
affordable
housing
and
workforce
diversity
to
be
truly
effective.
O
However,
we
must
seize
on
the
moment,
build
on
our
emerging
momentum
and
display
the
courage
to
attack
the
problem
and
not
just
the
symptoms.
Our
problem
is
our
tax
structure,
not
to
disagree,
but
I
do
very
much
with
a
couple
of
former
presenters.
We
need
to
begin
to
shift
our
tax
structure,
as
advocated
by
the
2003
and
2009
tax
reform,
Commission's
to
taxing
real
estate
and
not
business
and
employees.
O
In
the
last
four
decades,
and
some
of
my
slides
indicate
these
numbers
graphically
in
the
for
decades,
Philadelphia's
lost,
232
thousand
jobs
or
28%
of
our
job
base.
Philadelphia
has
still
not
recovered
to
1990
job
levels,
not
recovered
to
1990
job
levels
and
still
lags
our
peer
cities,
an
annual
growth
while
we
grow
1.3
percent
average
over
the
last
six
years,
and
we
celebrate
that
because
that
was
a
departure
from
where
we've
been
the
average
of
the
top
25
cities
was
2.8
percent.
O
The
implications
of
this
decline
are
real
they're
stark,
our
unemployment
rate
continues
to
exceed
the
national
average.
Philadelphia
has
the
highest
poverty
rate
among
major
cities
and
when
the
worst
rates
for
deep
poverty
in
the
country,
our
declining
job
base,
also
means
that
40%
40%
of
city
residents
commute
outside
of
the
city
to
find
work
a
rate
more
than
twice
the
reverse
commute
in
New
York
City
from
the
job
growth
coalition
of
brandywine's
perspective.
The
city's
major
public
policy
objective
should
be
to
make
Philadelphia
a
top
5
job
grower
in
the
country.
O
Every
tax
and
every
public
policy
decision
should
be
evaluated
strictly
through
that
lens
I'm
on
the
front
line
on
the
soldier
in
marketing
Philadelphia
every
single
day,
and
there
is
no
question,
no
question
that
our
tax
structure
is
a
gating
issue
to
us
growing
jobs.
When
a
company
is
looking
to
relocate
into
this
city,
they
see
a
city
that
has
a
wage
tax
that
is
four
times
the
regional
average
and
the
highest
wage
tax
among
the
50
largest
US
cities.
O
Businesses
are
also
deterred
when
they
see
a
tax
structure
that
adds
through
you
and
Bert,
a
tax
premium
of
20
to
30
percent
to
do
business
in
the
city.
They
also
see
a
city
with
property
tax
rates
and
assessed
values
per
pupil
well
below
this
regional
and
the
state
average.
In
a
recent
survey
that
Brandywine
conducted
in
the
region,
we
found
that
the
additional
tax
burden
for
a
company
to
locating
to
Philadelphia
could
be
up
to
$25.00
per
square
foot.
O
Brandywine
is
also
one
of
the
largest
owners
of
parking
garages
in
the
city,
the
viability,
the
performance
of
those
garages
and
Lots
are
severely
hampered
by
filled
life
having
one
of
the
highest
parking
rates
in
the
country.
At
this
juncture,
with
over
22%
parking
tax
has
become
almost
neck
anomic
to
build
standalone
parking
garages.
So
as
part
of
any
tax
reform
effort,
we
should
be
reducing
that
tax.
Back
to
the
15%
level.
The
city
has
set
a
bold
goal
of
taking
control
of
our
schools
that
was
courageous
and
necessary.
O
Imagine
the
additional
jobs
you
could
create
if
we
simply
grew
at
the
average
of
the
top
25
cities
in
the
country.
If
we
grow
at
the
national
average
for
10
years,
who
would
generate
over
90,000
jobs
for
the
city?
Imagine
the
multiplier
effect
of
those
jobs.
Imagine
the
labor
force
diversity
that
would
be
able
to
create
and
sustain
imagine
the
increase
in
home
values
that
would
come
from
that,
along
with
the
increased
tax
revenues
from
real
estate
taxes.
Imagine
the
strength
of
our
educational
and
talent
pool
it
all
has
to
start
with
jobs.
O
The
best
way
to
make
the
city
competitive
is
to
generate
jobs
and
stop
over
taxing
employers
and
employees.
Every
economic
study
I
have
seen
indicates
that
the
wage
and
business
taxes
are
the
single
largest
issues
in
creating
for
job
growth.
Momentum
for
the
city.
Those
predictions
are
clearly
outlined
in
the
work
of
previous
tax
reform
commissions
and
stand
as
a
clear
beacon
today.
O
So
fundamentally,
brandy1
in
our
coalition
believe
that
the
city
should
shift
the
tax
burden
away
from
taxing
businesses
and
employees,
and
we
must
get
on
a
dis
event,
plan
discipline
paths
to
show
a
messaging
to
the
community
that
we
are
willing
to
reduce
wage
and
business
taxes
and
that
the
city,
administration
and
City
Council
have
the
courage
to
do
that.
Thank
you
very
much.
Thank.
P
Good
afternoon
I'm
David
Thornburg
president
CEO
of
the
community
of
70
apologize
from
our
voice
by
male
head
cold
working
today.
It's
my
pleasure
to
be
with
you
here
today
and
I
appreciate
your
your
focus
on
this
important
set
of
issues.
If
it's
okay,
I
think
you
have
my
written
testimony
and
I'd
like
to
just
offer
a
couple
of
summary
points
and
you
can
absorb
the
restitch
at
your
leisure.
This
issue
of
the
city's
tax
structure
has
been
of
great
concern
to
me
over
the
last
thirty
years.
P
In
my
civic
leadership
roles
here
in
in
Philadelphia,
I
was
privileged
to
serve
as
the
executive
director
of
the
economy.
League
of
Greater
Philadelphia
for
12
years
I
ran
a
unit
of
the
entrepreneurial
Center
at
Wharton
for
about
seven
years
and
I
know
councilman
Johnson,
you
know,
I
was
running
the
fellows
in
student
government
for
seven
years
and
in
those
roles,
I
had
the
opportunity
to
launch
some
I
think
high-impact
initiatives
that
have
benefited
the
city
and
its
residents.
I
was
a
founder
of
the
Enterprise
Center
out
in
West.
P
P
I
shudder
to
think
it
was
that
long
ago,
but
I
was
convinced
by
the
work
that
Professor
Inman
and
the
folks
at
eConsult
did
with
us
when
I
always
hit
the
economy
league
that
centered
on
the
wage
tax,
in
particular
as
the
culprit
for
much
of
our
sluggish
job
growth
and
economic
growth
over
the
years,
and
one
way
to
think
about
that
question
was
raised.
You
know
how
are
we
different
from
other
cities,
Boston
or
Chicago
or
what-have-you?
P
Lots
of
cities
have
had
the
challenges
that
we
have
had,
whether
that's
a
racial
divide,
tough
schools,
redlining,
etc,
etc,
but
I
think
the
the
difference
in
job
growth
and
economic
prosperity
that
Gerry
Sweeney
just
mentioned,
to
my
mind,
really
has
to
come
back
to
something
that
is
very
distinctive,
and
that
is
our
tax
structure,
particularly
our
over-reliance
on
the
wage
tax.
I
was
saying
to
bob
minimun
earlier.
I
think
I
remember
this.
I
know
this
question
came
up
that
last.
P
This
question
is
particularly
relevant
right
now.
We've
talked
a
little
about
this
whole
amazon
thing.
I'll
talk
more
about
that
later,
but
also
referencing,
something
that
Gerry
mentioned
in
seemingly
in
a
short
period
of
time.
You
folks
are
going
to
have
in
front
of
you
some
tough
questions
about
how
we
raise
money
for
the
schools
and
you're
gonna
have
to
try
to
follow
the
guidelines
that
Professor
Inman
gave
you,
which
is
to
say
you
know.
Where
can
we
raise
the
most
money
with
the
least
distortion
on
our
communities
and
our
in
our
residents
and
I?
P
So
they
had
each
of
the
I.
Don't
know
hundred
cities,
largest
cities,
kind
of
showing
their
distribution
of
income
and
I
was
I,
was
floored
by
what
the
numbers
showed
about
how
little
wealth
there
was
in
Philadelphia
at
the
upper
end
of
the
spectrum
and
I'll
just
throw
you
a
couple
of
numbers
in
San
Francisco
in
2015,
forty
percent
of
households
make
more
than
$100,000
a
year
and
16.4%
make
more
than
$200,000
a
year.
P
Well,
we
know
housing
costs
and
so
forth,
and
so
on,
but
still
forty
percent
in
stark
contrast
in
Philadelphia
in
2015,
just
twelve
percent
of
households
made
more
than
a
hundred
thousand
dollars
a
year
and
only
two
point.
Four
percent
of
households
made
more
than
two
hundred
thousand
dollars
a
year.
P
So
Philadelphia
is
not
only
a
poor
City,
but
it's
not
a
wealthy
City
one
other
number
that
I
would
throw
out,
which
is
along
the
same
lines.
You
know
in
in
taxing
to
pay
for
schools,
it's
a
function
of
the
value
of
the
property,
the
assessment
and
then
the
tax
rate
Polly
via
the
Senator
City.
District
has
pointed
out
that,
in
that
the
tax
base
per
pupil
in
Lower,
Merion,
School
District
right
across
City
Avenue
is
hugely
larger
than
the
City
field
office.
P
In
fact,
the
city
Philadelphia's
tax
base
per
pupil
is
only
fifteen
percent
of
what
it
is
in
Lower
Merion,
meaning
that
it's
much
easier
to
raise
more
money
at
less
pain
to
citizens
and
businesses
in
Lower
Merion
than
it
is
in
Philadelphia.
So
again,
I.
Look
at
these.
These
trend
lines
over
time
and
I
am
convinced
that
that's
a
damaging
effect
of
our
tax
structure.
A
quick
comment
about
Millennials
we've
been
talking
about
Millennials
I
have
two
kids
in
that
zone.
P
Contrary
to
what
we
see
in
the
press,
sometimes
our
population
increase
is
not
a
function
of
hordes
of
Millennials
moving
into
Philadelphia.
It's
simply
a
function
of
more
people
being
born
than
dying
and
international
immigration,
so
the
short
term
population
growth
over
the
last
three
or
four
years-
that's
where
it
comes
from
and
I
would
say,
given
our
current
administration
and
their
attitude
towards
immigration,
I
would
not
bet
that
that
flow
of
international
immigrants
is
going
to
continue.
P
The
second
thing
is
that
you
know
we
have
to
look
at
this
millennial
bulge
in
population
as
an
opportunity,
but
a
relatively
short-lived
one.
Unless
we
get
some
things
right,
my
kids
are
in
their
mid-20s
God
willing
in
ten
years,
they'll
be
in
their
mid-30s
and,
as
we
all
know,
in
your
mid-30s,
you
have
a
different
set
of
choices
and
life
decisions
to
make
jobs,
careers,
family,
mortgage
what-have-you,
and
so
in.
Looking
in
that
court,
we
ought
to
be
asking
ourselves
well.
P
What
is
it
that
those
folks
will
pay
attention
to
that
would
cement
their
attachment
to
Philadelphia
and
in
fact
the
the
Pew
folks
here
in
town
asked
that
question
and
number
one
on
their
lists.
You
probably
think
it
was
schools,
but
number
one
on
their
list
was
job
opportunities
so
again
to
the
to
the
extent
and
I
believe,
there's
a
there's,
a
great
connection
between
our
tax
structure
and
job
opportunities
that
will
affect
the
willingness,
the
eagerness
ability
of
our
of
this
younger
cohort
to
sink
roots
over
the
long
term.
P
Here
in
Philadelphia,
just
a
quick
note
about
the
so
called
levy,
Sweeney
proposal
that
is
in
front
of
the
legislature
now,
on
its
second
pass,
we
did
sign
on
at
the
committee
of
72
the
job
growth
coalition,
because
we
believe
I
believe
this
is
the
most
the
most
practical
and
the
most
and
the
highest
impact
move
that
we
could
make
to
ensure
the
future
competitiveness
of
our
cities.
As
you
all
know,
I
mean
the
points
been
come
up
here.
P
The
the
problem
with
even
rearranging
taxes
is
that
we
we
have
to
figure
out
some
way
to
pay
for
it,
because
next
thing
you
know
we're
talking
about
fire
houses
or
rec,
centers
or
libraries
and
so
forth
and
I
think
artfully
the
the
constitutional
change
that
the
proposal
suggests
in
in
increasing
commercial
property
taxes.
As
a
way
to
buy
down
a
dramatic
increase
in
the
wage
tax
accomplishes
that
and
in
fact,
I
think
the
proposal
would
actually
be
revenue
positive
to
the
city
over
a
few
years.
P
I
know
that
is
technically
not
you
know
in
your
purview
right
now
as
City
Council,
but
it
is
coming
up
for
another
round
votes
in
the
legislature.
I
think
as
early
as
this
March
and
I
would
just
urge
you
individually
collectively.
I
know,
there's
some
difference
of
opinion
on
this
issue,
but
to
support
it
because
I
do
think
this
is,
as
I've
been
tracking
this
issue
for
20
or
25
years.
I
think
this
is
the
single
best
opportunity
we
have
to
accomplish
something
really
important
for
our
future
to
final.
Actually,
one
final
thought.
P
I've
always
had
trouble
with
with
targeted
tax
incentives,
whether
an
abatement
Saur
other
kinds
of
sentence,
because
they
often
don't
answer
the
question
that
people
raise,
which
is,
you
know,
I'm
a
long
time
resident
I've
got
a
house
that
I
paid
for
a
long
time
ago
or
I've
been
working
here
and
that
incentive
doesn't
do
anything
for
me.
You
know
what
about
what
about
me.
P
I've
been
hanging
in
there
all
along,
and
it
seems
to
me
if,
if
we
can
accomplish
something
akin
to
the
levy,
sweet
Sweeney
proposal
is
short-term
and
present
a
different
tax
environment
to
all
philadelphians
I.
Think
we'll
simultaneously
make
this
an
attractive
proposition
the
amazon
and
take
care
of
that
problem.
They
will.
It
would
be
a
signal
that
that
that
Philadelphia
as
a
future
economic
prosperity
is
for
all
of
us
and
that
we're
not
just
cutting
a
special
deal,
a
one-time
offer
from
the
folks
from
Seattle.
A
A
H
Thank
you
for
having
this
hearing
and
inviting
us
to
participate.
My
name
is
Robert,
sir.
It's
key
and
I
serve
as
the
president
of
the
Philadelphia
Parking
Association.
We
represent
15
local
private
parking
operators
and
owners
of
parking
facilities
throughout
Philadelphia.
Together
we
employ
2,500
people,
most
of
them
thought
off
your
residence
and
pay
roughly
150
million
dollars
in
nine
forms
of
taxes
and
fees
a
year
to
the
city
we,
along
with
other
concerned
businesses,
see
a
looming
crisis
in
infrastructure
that
will
impact
every
industry
in
the
city.
H
This
crisis
is
brought
up
about
by
burdensome
and
excessive
taxation,
specifically
aimed
at
the
parking
industry.
A
complete
transportation
infrastructure
is
what
makes
a
city
work.
All
businesses
and
residents
count
on
an
adequate
transportation
infrastructure
to
commute
to
and
from
work
support
the
shops
in
their
local
stores,
as
well
as
reach.
The
incredible
array
of
cultural
and
entertainment
venues.
H
Philadelphia
has
to
offer
roads,
train
tracks,
sidewalks,
subway
tunnels
and
parking
facilities
are
all
necessary
elements
of
our
transportation
infrastructure,
but
none
of
that
infrastructure
is
free.
All
of
the
transportation
infrastructure
is
publicly
funded
or
subsidized,
except
for
private
parking
facilities.
H
H
Building
new
above-ground
spaces
in
Philly
now
ranges
from
45,000
to
75
thousand
dollars
per
space
and
below
ground
ranges
from
75,000
to
125,000
dollars.
A
space
rebuilding
deteriorated
parking
spaces
inside
old
garages
costs
even
more
yet
without
parking,
many
employees
can't
get
to
their
jobs.
Patients
can't
get
to
their
doctor's
appointments
and
visitors
can't
get
to
their
hotels,
favorite
shopping
museums,
conventions
and
restaurants.
H
The
current
state
of
the
parking
industry
is
dire.
Taxes
have
risen
so
high
that
parking
is
no
longer
a
viable
business
and
parking
supply
is
dwindling
at
a
dramatic
pace.
In
fact,
parts
of
town
are
already
seeing
shortages.
Many
of
our
city's
economic
development
groups
are
currently
performing
studies
to
evaluate
the
impact
of
this
dis,
dismal
condition
and
Mike
Harris's
joined
us
today
and
his
he
represents
the
South
Street
Improvement
District,
and
he
sees
a
crisis
he's
lost
about
20%
of
his
inventory,
maybe
more
than
any
part
of
Center
City.
H
The
tax
situation
combines
with
the
costs
to
build
and
repair
existing
supply
means
that
developers
are
deciding
to
not
build
or
provide
new
parking
spaces
or
even
replace
current
spaces,
even
though
they
are
building
new
parking
demand
with
their
developments,
because
some
developments
won't
work
without
the
availability
of
parking.
Some
people
will
decide
to
take
their
businesses,
their
business
outside
of
Philadelphia
Philadelphia's
public
transportation,
while
indeed
a
great
asset
for
our
city.
With
a
majority
of
our
people
using
that
that
transportation
doesn't
work
for
everyone,
public
transportation
doesn't
work
for
everyone.
H
Philadelphia
has
raised
taxes
that
impact
the
parking
industry
ten
times
in
the
last
11
years,
which
is
more
than
any
other
industry
in
the
city.
Before
those
increases,
the
parking
industry
was
already
the
highest
taxed
industry.
We
understand
now
that
the
city
is
again
considering
higher
real
estate
taxes
to
fund
our
public
schools.
We
are
in
favor
of
every
business
and
resident
paying
their
fair
share
of
taxes.
H
However,
when
a
business
is
forced
to
pay
forty
to
fifty
seven
percent
of
every
dollar
they
charge,
no
business
can
survive
under
those
under
that
kind
of
taxation
or
be
expected
to
satisfy
the
city's
growing
demands.
We
believe
there
are
many
reasonable
methods
to
increase
city
revenues
from
other
sources
to
alleviate
the
small
portion
of
the
parking
industry's
taxes
that
we
seek
to
reduce.
In
fact,
he
consult
has
validated
eight
specific
revenue
sources.
That
combined
would
more
than
generate
the
dollars
needed
to
recoup
this
revenue.
H
Specifically,
we
are
seeking
to
roll
back
a
rollback
of
the
Philadelphia
Parking
tax
to
fifteen
percent
from
its
current
twenty
two
and
a
half
percent,
and
a
reduction
of
the
UN
owe
tax
to
reflect
the
city's
own
study
depicting
our
overall
occupancy.
If
the
city
implemented
these
tax
reform
measures,
we
believe
the
current
owners
of
parking
facilities
would
be
able
to
properly
maintain
existing
facilities
and
develop
developers
would
again
begin
adding
new
parking
to
their
new
developments.
H
H
On
the
other
hand,
if
the
city
continues
on
its
current
course
with
this
policy
within
a
very
few
years,
the
lack
of
parking
and
the
imminent,
crushing
crushing
Lehigh
parking
rates
will
impact
the
very
tax
base
that
the
city
depends
on
by
the
way.
Since
you
know,
I
think
we've
been
in
front
of
you
many
times
and
you're.
We
have
shared
some
of
these.
Some
of
these
reports
to
you.
This
is
an
exhibit
of
1700
parking
spaces
in
just
six
facilities
that
are
being
eliminated.
H
J
Seize
this
moment
to
thank
you
for
your
leadership,
particularly
around
the
project
in
schoolyards,
that
there
is
a
general
sentiment
I'm
sure
I
can
speak
for
a
number
of
members
who
believe
that
you
authentically
you
you
you
talk
about
inclusion,
diversity
and
equity
and
then
you've
demonstrated
it
in
a
Mack
way
and
that
should
never
ever
go
unnoticed
or
unrecognized.
If
you
could
simply
take
that
formula
and
put
it
in
the
bottle
and
share
it
with
the
industry,
we
many
of
the
discussions
we
have,
we
would
not
have
to
mr.
Thornberg.
J
J
P
J
P
But
what's
striking
to
me,
I
mean
I
moved
here
32
years
ago,
33
years
ago
and
33
years
ago
we
said
this
is
an
affordable
City
and
it's
still
affordable
City.
But
that
tells
me
that
I
think
we
haven't
been
growing
mm-hmm
because
you
know
when
I
bought.
My
first
house
in
Germantown
in
1987
I
would
have
loved
nothing
more.
You
know
I
paid
ninety
one
thousand
dollars
for
that.
I
would
love
nothing
more
than
to
have
that.
You
know
skyrocketing
value
and
it
never
really
did
I
say
no.
So.
P
All
cities
are
different
and
you're
trying
to
strike
a
balance
between
I,
mean
I,
think
San
Francisco
is
runaway
unaffordable
and
it
has
huge
income
inequality,
problems,
I
I,
don't
know
that
I
could
say
that
that
any
city
particularly
has
it
right,
but
you're,
balancing
growth
and
the
increase
in
property
values
increase
in
wages,
increase
in
employment,
growth,
with
a
sense
of
stability
and
and
community
I.
Guess:
okay,.
J
H
Think
it's
a
business
tax
I
mean
it's
I
think
we
think
that
parking
rates
have
gone
up,
maybe
$10
higher.
You
know
on
the
max
rates
than
they
should
be,
and
that's
a
consequence
of
so
many
parking
facilities
going
away
developers
not
putting
any
we're
developers
of
real
estate.
I
mean
you
have
you
have
probably
the
three
you
know
biggest
developers
of
parking.
H
H
J
H
A
very
good
question,
because
I'll
tell
you
building
too
much
parking
is
a
mistake.
Also,
Washington
DC
has
a
policy
where
you
know
every
building
that
you
build.
You
have
to
build
parking
inside
that
building
and
that
really
they
over
built
parking,
there's
too
much
parking
in
Washington
DC
and
they
have
a
different
type
of
a
problem.
I
think
did
which
but
I
think
I.
Think
you
want
to
get
it
right.
You
want
the
business
to
be
viable.
H
Know
with
the
South
Street
is
a
really
interesting
kind
of
scary,
exalt,
City
and
and
South
Street
South
Street
has,
you
know,
maybe
had
like
1500
off
street
parking
spaces.
There
are
already
lost
about
200,
they
could
lose
another
2
or
400.
Okay,
once
they're
gone
and
the
developers
do
something
else
with
those
things
and
they
decide
not
to
add
any
parking
back.
That's
it.
This
no
one's
gonna
come
in
and
tear
down
fifth,
a
block
full
of
townhouses
to
build
a
parking
structure
or
something
this
is.
H
This
is
really
time-sensitive
now
and-
and
you
know,
the
the
city's
own
study
has
shown
a
reduction
of
the
number
of
spaces
and
it's
it
seems
to
be
accelerating
and
developers
are
making
decisions
every
day
and
you
want
them
to
build
this
infrastructure
for
the
city.
It's
for
free.
The
city
is
the
beneficiary
of
developers
putting
it
in
it's
something.
H
Instead
of
having
to
build
train
tracks,
you
don't
have
to
build
train
tracks,
we're
building
the
train
tracks
underneath
these
developments,
but
we're
deciding
not
to
do
that
because
the
U,
for
whatever
reason
the
taxes
are
too
high
when
the
industry
and
it's
not
a
viable
business
anymore-
and
this
is
gonna.
This
is
already
having
a
consequence
and
it's
it
could
get
really
bad
because
you
know
New,
York
and
San
Francisco
have
rates
açaí,
seventy
five
eighty
dollars
for
parking-
and
we
are
not
those
cities
and
and
I.
Don't.
H
I
fear
that
people
are
not
gonna
drive
into
the
city,
they're
already
they're,
already
changing
their
plans,
they're,
not
driving
into
the
city
as
much
our
volumes
have
dropped.
Okay,
a
lot
of
it
has
to
do
with
technology,
with
uber
and
and
other
things
that
are
happening,
but
we
see
volumes
dropping
and
we
don't
want
to
price.
We
don't
want
to
push
people
out
of
our
city,
so
one
of
my
competitors
said
something
interesting.
H
You
said
if
you're
in
the
retail
business
there
they're
considering
congestion
pricing
in
Manhattan,
because
uber
has
40,000
drivers
on
the
road
every
day
you
can't
get
from
one
side
of
the
city
to
the
other,
so
they're
gonna
put
a
$10
charge
on
everybody
driving
into
this
city,
so
one
of
my
competitors
that
their
numbers
are
off
in
New
York,
because
no
one's
driving
into
the
city
because
of
the
congestion-
and
he
said
well,
what
does
a
retailer
do
when
their
business
is
dropping
off?
You
want
to
raise
the
prices
right.
H
No,
you
want
to
lower
the
prices.
They're
gonna
they're
gonna
raise
prices
on
on
on
people
driving
into
the
city,
and
that
is
going
to
dissuade
more
people
from
coming
into
the
city.
It's
we
think
that
it's
there's
out
of
it's
out
of
balance
right
now,
and
there
are
ways
that
there's
things
that
are
too
low
enough,
that
they
can
that
the
city
can
raise
raise
money
from
other
sources
which
we
have
supplied
you
with
and
will
supply
you
again.
H
If
you
need
them
that
eConsult
has
has
done
work
for
us
to
to
validate
that
we
can.
We
can
do
that
I.
Think
the
city
can
do
this
and
put
the
thing
more
into
balance
and
encourage.
You
know
some
develop.
We're
not
gonna
have
a
gold
rush
of
marketing
development.
It's
too
expensive
to
build
them.
Believe
me,
but
you
you
want
targeted
development
and
supply
to
come
back
in
whatever
it's
gonna
happen
with
autonomous
vehicles
and
in
the
future.
We
believe
that
there
will
be
a
need
for
the
parking
industry
in
some
fashion.
H
C
O
C
Okay,
in
the
same
quick
question
in
reference
to
parking,
has
there
been
any
conversation
with
any
of
our
hospitality
or
other
organizations,
because
they
would
also
be
impacted
by
the
lack
of
parking
spaces.
I
know
from
my
own
perspective,
I've
seen
reduced
parking
places
that
use
the
park,
but
getting
many
some
the
hospitality
they
visited
up.
You
can
imagine
Business
Bureau,
because
that's
all
they
will
also
be
impacted
when
you
may
have
less
parking.
Yes,
people
use
uber
and
lyft,
but
not
everyone.
The.
H
That's
a
very
good
topic:
the
Philadelphia
Chamber
of
Commerce,
the
African
American
Chamber
of
Commerce,
have
been
very,
very
supportive
of
this
issue
and
they
have
convened
multiple
meetings
with
the
convention.
The
convention
bureau,
the
hotel
Association,
the
Restaurant
Association,
the
office
people
missing
some
other
we've
met
with
probably
15
different
associations.
They
are
very
concerned,
then,
if
we
get
to
the
bill,
point
I
think
that
I
think,
hopefully
I
think
the
chamber
is
going
to
have
some
testimony
on
this
specifically
and
they
can
answer
some
more
questions.
H
The
hotel
rates
are
35
to
50
dollars
already
in
Philadelphia,
which
is
high,
I
mean
that's
really
amazing
that
that
that
it's
that
high
and
I
think
it
dissuades
people
you
know
from
coming
in
to
the
city,
I
mean
that
you
know
they
make
you
make
a
decision
to
come
in
for
a
staycation
or
not,
and
you
calculate
all
of
your
costs,
so
they
are
concerned.
The
Convention
Center
specifically
is
concerned
about
their
infrastructure.
H
I'll
speak
for
my
you
know
for
for
the
Spears.
They
they
have
a
lot
of
parking
facilities
along
Vine
Street.
They
want
to
develop
all
of
that
space.
I
know
they
do
if
they
develop
those
500
spaces
and
don't
put
any
parking
back
into
whatever's
developed
there.
The
Convention
Center
could
have
some
shortages
of
parking.
You
know
this
is
this.
Is
a
you
have
to
look
at
the
city
again,
there's
a
long
term
investment.
H
E
Councilman
Jim
I
just
wanted
to
be
quick
here
and
so
mr.
Sweeny,
it's
a
pleasure
to
see
you
I'm,
also
relatively
new
to
council
and
just
trying
to
understand
a
little
bit
about.
You
know
what
what
the
considerations
are
around
the
wage
reduction.
So
it's
my
understanding
that
the
current
five-year
plan
has
wage
reductions,
built-in
reductions
in
the
in
the
wage
tax
built
in
to
the
tune
of
about
two
hundred
forty
million
dollars
over
five
years.
So
that
is
by
far
our
biggest
investment.
E
We're
not
putting
that
much
money
into
schools,
we're
not
putting
that
much
money
into
transit
and
other
types
of
things,
but
we
are
putting
it
into
the
reduction
of
the
wage
tax
and
I'm
wondering
if
you
can
give
some
perspective
about.
What's
still
I
mean,
obviously
we
I
understand
the
absolute
numbers
about
the
relativity
and
how
it
relates.
E
But
what
is
like
not
working
in
terms
of
what
that
path
is,
and
then
how
do
we
try
to
think
through
what
how
to
talk
through
some
of
those
things,
because
that
is
a
significant
burden
to
shift
on
to
our
Philadelphia
residents?
Well,
I!
Think
and
I'm
not
sure
that
they
will
be
mutually
exclusive
right.
O
Now
yeah
look
I,
think
the
the
decision
a
company
makes
when
they're
looking
at
coming
into
the
city
is
multifaceted,
but
a
lot
of
is
driven
by
economics
and
by
political
messaging.
The
for
a
company
relocated
into
the
city
of
Philadelphia
Sencha
Lee
need
to
give
all
of
their
employees
of
pay,
raise
to
compensate
them
for
the
wage
tax.
They
need
to
compensate
them
for
commuting
taxes.
That's
exactly
the
algorithm
we
went
through
and
move
to
our
hundred
employees
downtown.
O
It
doesn't
cost
anything
to
park
in
the
in
the
suburbs.
It
costs
money
to
park
in
the
city
and
it
you
need
to
pay
the
cost
of
public
transportation.
So
employers
look
at
that.
They
also
look
at
the
the
really
almost
incomprehensible
burden
that
employers
need
to
pay
to
be
in
this
city.
You
have
a
use
in
occupancy
tax
that
ratchets
up
with
real
estate
tax
assessments.
So
now
we
have
real
estate.
We
have
you,
stocks,
move
taxes,
almost
three
dollars
a
square
foot.
You
have
real
estate
taxes
a
little
bit
north
of
that.
O
Then
you
add
on
to
that
the
various
components,
the
B
IRT-
that
can
be
extraordinarily
expensive
as
well.
Now
we
found
by
doing
a
lot
of
the
work
that
we
worked
with
Center
City
District
on
econ
Sol,
public
financial
management
lie.
The
foundational
work
done
by
the
tax
reform
commissions
was
that
the
biggest
gating
issue
tends
to
be
the
wage
tax,
because
that
affects
not
just
the
employer,
but
the
employer
and
the
employees
and
I
think
that
really
is
an
issue
or
our
plan.
O
That's
out
in
Harrisburg,
would
reduce
the
wage
tax
below
three
percent
over
ten
years,
which
we
view
gets
it
into
the
range
of
reasonableness
compared
to
suburban
counties.
And
that's
when
I
alluded
to
my
testimony
when
you
take
a
look
at
all
the
suburban
counties
on
both
sides
of
the
Delaware
River,
the
sum
the
tax
burden
to
be
in
some
municipalities
is
as
low
as
less
than
a
dollar
or
square
foot.
There
is
no
no
municipality,
even
remotely
approaches.
O
E
E
Like
if
you
want
to
live
in
Phoenix
I
guess
people
are
gonna,
get
a
Phoenix,
but
but
in
part
it's
I,
guess
you
know
our
our
current
strategy
of
the
240
million
dollar
reduction
in
the
wage
tax
will
bring
us
to
our
lowest
point
by
2022
I.
Don't
know
where
we're
going
like
I'd
be
I'll
have
to
talk
to
our
finance
department
about.
E
If
we
continue
on
that
trajectory
where
we
would
be
in
2028,
but
in
2022
will
be
below
3.7
percent,
we
will
have
forfeited
240
million
dollars,
but
we
will
have
given
that
as
basically
a
you
know
as
an
important
commitment
and
I'm
just
wondering
whether
you
feel
like
there
is
is
that
I
mean
you
know,
aside
from
the
recession
that
we
were
in,
where
we
had
to
freeze
the
wage
tax
reductions,
we
have
never
not
reduced
taxes.
So
is
you
know
it's
your
belief
that
we're
not
going
to
continue
with
that
or
we're?
E
O
Not
sure
what
the
recollection
is
with
my
recollection
is
that
almost
every
year
taxes
do
go
up
for
businesses
in
the
city
of
Philadelphia,
whether
it's
an
occupancy
tax
or
one
of
the
other
business
tax
components.
The
wage
tax
incremental
reduction
is
woefully
inadequate
to
change
the
minds
of
businesses
looking
to
relocate
here.
240
million
dollars
is
certainly
a
step
towards
positive
messaging.
It
does
not
convey
the
confidence.
O
Businesses
need
to
relocate
their
businesses
here,
because
it,
the
city,
has
a
tendency
when
it
faces
a
budget
crisis
to
tax
ace
ever
dwindling
supply
of
employers,
and
then
employees
employers
are
easier
to
tax
by
the
city
than
employees,
because
the
businesses
don't
vote,
but
the
reality
is
the
multiplier
effect
on
a
job
is
significant,
so
I
think
the
the
lens
through
which
the
city
evaluates
tax
policies.
What
do
we
need
to
do
to
generate
job
growth
period?
Now?
School
systems
need
to
be
funded.
O
So
the
point
of
my
testimony
today
is
to
make
sure
when
you
go
through
those
deliberations,
you
start
to
look
at
broadening
that
cost
with
the
benefit
it
will
create
and
it
resides
that
benefit
with
the
residents
of
the
city
of
Philadelphia,
the
residential
property
owners,
not
just
the
business
or
the
commercial
property
owners,
and
that
is
what
we
need
to
focus
on
as
we
go
through
this
budget
session.
We
can't
come
out
of
this
budget
session,
with
school
funding
being
borne
by
the
backs
of
businesses
or
employees.
Yes,.
E
No
I,
you
know
I've
been
a
big
proponent,
that
any
kind
of
major
lift
around
taxation
or
any
kind
of
funding
of
institutions,
in
particular
whether
it's
New
York
grappling
with
its
own
transit
system
or
here
in
Philadelphia,
where
we're
trying
to
support
our
public
schools
that
it
has
to
be
shared
across
multiple
entities
and
it's
not
a
one
industry
type
of
thing
and
I
think
we
will
show
that
as
we
may
afford.
But
it's
important
for
us
to
have
this
kind
of
dialogue.
E
But
you
know
again
like
this
is
a
city
that
has
a
lot
of
needs
and
we're
trying
to
make
sure
that
the
needs
of
business
are
tied
in
with
our
residential
life
and
I.
Think
you
know
that
more
than
almost
anybody
else
as
a
somebody,
who's
really
invested
more
in
Philadelphia
than
anybody
else.
I
really
appreciate
that
some
things.
O
Know
that
thank
you
and
look.
It's
an
important
topic
and
I
appreciate
the
chance
to
speak
today.
Look
I,
think
of
the
statistics
that
we've
talked
about
today,
the
one
that
frightens
me
the
most
and
should
frighten
each
of
you
and
I
know.
It
certainly
frightens.
A
number
of
members
of
the
Pennsylvania
delegation
is
the
number
of
people
who
live
in
this
city
who
work
outside
the
city,
because
we've
had
a
good
run
with
young
people
and
older
people
moving
into
the
city.
O
The
reality
is
at
some
point
they
want
to
live
closer
to
where
they
work.
So
we
have
almost
40
percent
of
the
people
who
live
in
this
city.
Work
outside
city,
that's
a
harbinger
of
a
economic
downturn.
We
need
to
make
sure
that
the
where
those
people
work
is
in
the
city
of
Philadelphia,
so
the
whole
region
can
grow
so
that
that
that's
one
of
the
things
we
should
really
focus
on
in
terms
of
what
do
we
need
to
do
to
make
those
businesses
move
their
jobs
inside
the
city
limits.
A
A
So
I
wish
Bob
Edmund
was
still
here
as
well
as
my
colleague
Councilwoman
Helen
Jim,
because
she
had
opportunity
to
ask
questions
of
her
former
professor
and
she
was
very
proud
to
have
a
chance
to
engage
in
a
Q&A
with
him
and
I
have
the
great
opportunity
to
have
my
former
professor
mr.
Steve
Mullen
from
my
public
finance
class
at
University
of
Pennsylvania
Thurston
of
Government,
and
so
when
I
heard,
Jeff
Hornstein
talking
about
user
fees
and
Tim
Barnes
had
me
think
about
my
days
and
sitting
in
a
class
with
mr.
Steve
Mullen.
A
G
Good
afternoon
my
name
is
Drew
Vandenberg
I'm,
a
managing
director
in
the
Philadelphia
office
of
Grant
Thornton
I
serve
in
the
capacity
as
the
co-chair
of
the
Greater
Philadelphia
Chamber
of
Commerce
state
local
tax
committee,
along
with
Stu
Weintraub,
who
was
unable
to
join
us
today.
The
reason
I'm
here
is
Stewart
and
I
were
appointees
to
the
15-member
Tax
Reform
Commission.
They
began
its
work
back
in
2003.
There's
been
a
lot
of
discussion,
ready
of
the
2003
and
2009
commissions.
G
This
will
be
a
little
bit
of
a
history
lesson,
not
sure
everybody
needs
that
but
wanted
to
sort
of
level
set
where
we've
been
on
these
issues
already
it's
hard
to
believe
it's
been
15
years
and
wanted
to
go
back
to
some
of
the
recommendations
that
the
the
chamber
that
the
Commission
put
together
and
where
we've
come
to,
so
that
the
Commission
was
charged
with
recommending
methods
to
reduce
taxes
of
residents,
workers
and
businesses.
The
final
report
twenty-eight
very
specific
recommendations
for
changes
to
the
tax
structure.
G
It
was
part
of
a
ten-year
plan
and
it
was
really
a
fundamental
proposed
reform
to
the
city's
tax
system
to
increase
the
competitiveness.
So
very
much
what
we're
talking
about
here
again
today,
15
years
later,
the
five
hundred
page
report,
which
I
still
carry
around
with
me,
it's
it's
getting
a
little
faded.
It
outlined
the
recommendations
as
well
as
how
to
pay
for
we
were
charged
with
keeping
this
revenue
neutral,
which
is
you're.
Looking
at
now
is
quite
a
challenge
when
you're
talking
about
reforming
taxes
without
cutting
services,
so
that
was
our
charge.
G
G
The
intention
was
to
enact
all
of
this
as
a
comprehensive
tax
reform
strategy.
That
was
the
you
know
the
the
optimistic
view.
We
know
that
in
reality
it
would
be
difficult
to
adopt
28
recommendations
with
very
large
impacts
on
the
the
city's
economy.
All
at
once,
since
we
had
the
Commission
report
back
in
2003
a
number
of
the
legislature,
a
number
of
the
recommendations
have
seen
legislative
action.
I
would
characterize
them
more
in
the
administrative.
G
In
fairness
area
quite
a
bit
on
the
property
tax
side
and
I-
don't
want
to
go
through
these
specifically,
but
a
lot
of
good
things
were
done.
A
lot
of
other
recommendations
were
taken
to
heart
that
included
not
reducing
taxes,
so
the
Commission
actually
recommended
not
reducing
things
like
the
realty
transfer
tax.
The
property
are
the
parking
tax
other
things,
so
you
know
just
to
put
it
in
context.
G
The
budget
based
taxing
recommendations
and
implementing
the
land
value
tax
were
not
implemented
and
part
of
those
have
to
do
with
the
part
of
the
levy
Sweeny
plan
to
to
make
changes
the
Pennsylvania
Constitution
to
allow
for
the
varying
levels
of
Taxation.
So
there
is
still
hope
that
some
of
those
recommendations
will
come
to
fruition.
G
I
guess
I'll
switch
to
the
taxes
that
are
most
often
cited
and
when
we're
talking
about
competitiveness
in
Philadelphia,
it's
been
said
already
that
the
wage
tax
in
the
the
business
income
and
receipts
tax
or
the
PPT
as
it
was
15
years
ago,
when
we
were
on
the
Tax
Commission,
we
recommended
accelerating
wage
tax
reductions.
The
acceleration
hasn't
been
implemented.
G
Some
of
the
the
the
small
reductions,
if
excuse
me,
have
continued,
but
the
acceleration
that
was
recommended
did
not
take
place
and,
and
by
far
the
most
sweeping
recommendation
of
the
commission
was
related
to
the
BIR
T,
including
enacting
single
sales
factor
apportionment,
which
was
enacted
by
extending
the
net
operating
loss
carryover
beyond
the
three
years,
which
was
not
implemented
and
and
the
big
one
was
incrementally
reducing
the
tax
rate
down
to
zero
over
a
ten
year
period.
So
it
had
this
been
implemented
by
2015.
G
There
would
be
no
more
BIR
T
and-
and
we
would
not
be
talking
about
that
here
now
so
of
these
recommendations,
the
single
sales
factor
was
viewed
as
being
very
positive
to
encourage
investment
in
Philadelphia
and
changed
the
way
that
the
tax
was
calculated.
The
net
operating
loss
carryover
still
remains
at
three
years.
It's
it's
by
far
the
shortest
carryover
period
in
the
country
and
just
to
give
you
a
sense,
this
impacts
companies
that
are
cyclical
in
nature
that
make
money.
You
know
in
some
periods
and
lose
money
and
others,
but
more
specifically,
to
industries.
G
G
Pennsylvania
has
a
20-year
net
operating
loss,
carryover
period,
the
federal
was
20
and
as
part
of
tax
reform,
subject
to
some
other
limitations.
There's
now
an
unlimited
carryover,
so
I
think
the
trend
has
been
to
go
longer
in
the
carryover
period
to
allow
companies
that
make
these
investments
and
incur
losses
to
be
able
to
recoup
them
in
to
encourage
industries
to
to
come
to
Pennsylvania
during
the
growth
phase
and
to
stay
and
not
be
scared
away
by
the
fact
that
they
won't
be
able
to
offset
their
income
and
losses.
So
that's
one.
G
That's
still
out
there
that
hasn't
been
hasn't,
been
implemented,
and
then
the
last
one
you
know,
there's
not
a
whole
lot
to
say
about
that
other
than
you
know
that
the
recommendation
would
have
fully
phased
out
the
bir
T
and
again
reminding
you
that
that
we
put
together
the
report
with
all
the
analysis,
with
the
belief
that
this
was
going
to
be
revenue
neutral,
that
there
would
be
job
growth,
that
there
would
be
changes
and
other
taxes
like
the
property
taxes.
That
would
you
know,
would
cover
some
of
the
costs
of
this.
G
So
that's
something
I
think
again
that
the
council
needs
to
take
a
look
at
as
we
go
forward.
So
I'll.
Just
summarize
by
saying
that,
when
we're
looking
at
business
tax
competitiveness
that
there
there's
two
ways
to
look
at
it,
there's
globally
competitive,
which
I
think
Philadelphia
has
been
much
more
attuned
to
lately
because
of
Amazon
and
just
realizing
that
we
are
a
player
and
they
in
the
in
the
global
economic
market.
G
And
when
we're
doing
that,
you
know
we
have
to
deal
with
the
fact
that
there's
federal
taxes
that
there's
a
very
high,
almost
10%
pennsylvania,
corporate
tax
rate,
so
there's
quite
a
foundation
of
taxes
before
a
company
drills
down
to
a
specific
location
like
philadelphia
and
putting
a
6.3
percent
bir
tea.
On
top
of
that,
you
know
it's
tax
on,
and
it
is
quite
at
quite
an
incremental
burden.
G
So
that's
one
way
to
look
at
and
the
other
is,
you
know,
there's
quite
a
bit
of
local
economic
competitiveness
and
it
was
discussed
on
the
last
panel.
The
cost
of
operating
the
suburbs
first
is
operating
in
the
city,
there's
nothing
remotely
similar
to
the
bir
t
in
the
suburbs.
There's
a
business
privilege
tax.
That
is
only
on
grocery
seats.
We
have
to
keep
in
mind
that
the
bir
t
now
not
only
taxes
grocery
seats,
but
also
net
income.
G
So
you
know
that
the
playing
field
is
not
at
all
level
when
we
get
to
a
you
know
to
the
local
economy
and
the
local
competitiveness.
So
I'll
summarize
by
saying
that
the
the
Tax
Commission
demonstrated
in
2003
that
these
are
the
key
points.
This
is
a
city
we
tax
where
others
do
not
tax
the
taxes
are
too
high
and
the
taxes
are
unfairly
imposed.
That's
a
quote
from
our
report.
The
Commission
found
that
the
Philadelphia
compounds
the
problem
of
high
overall
tax
burden
by
relying
too
heavily
on
wage
and
business
taxes.
G
These
are
the
ones
most
likely
to
drive
residents,
businesses
and
jobs
in
the
city,
and
you
know
these
taxes
have
have
damaged
the
Philadelphia
economy
over
the
past
three
decades,
reducing
tax
revenue
and
the
ability
of
the
city,
as
well
as
the
school
district
to
finance
citizen
services
and
and
most
of
these
recommendations.
Most
of
these
concepts
were
again
reinforced
by
mr.
Epps
in
his
2009
mayor's
tax
taskforce
on
tax
policy
and
economic
competitiveness.
So
I,
thank
you
for
your
interest
in
these
matters
and
would
be
happy
to
respond
to
questions.
Thank.
A
Q
Thank
you
good
afternoon,
councilman,
green
and
and
councilman
green
and
Kenyatta
Johnson.
Here
I
am
Stephen
Mullin
president
of
consult
solutions
here
in
Philadelphia,
I
was
Philadelphia's
finance,
director
and
commerce
director
in
the
late
20th
century,
and
before
that
budget,
director,
st.
Louis
Missouri
in
those
positions,
I
saw
firsthand
the
need
for
municipal
revenues
and
the
varying
impacts
different
ways
of
generating
those
revenues
could
have
on
the
strength
and
growth
of
a
city's
economy,
and
hence
their
tax
bases.
Q
I
was
involved
in
developing
and
implementing
the
Rendell
administration's
initial
tax
rate
reduction
program
and
I
have
studied,
taught
or
practice
municipal
finance
and
tax
policy
for
nearly
four
decades.
An
econ
sole
solution
has
been
directly
and
indirectly
involved
with
various
tax
reform
efforts.
Q
Given
the
expert
testimony
that
you've
already
heard,
I
would
like
to
briefly
highlight
two
basic
issues
here:
first
and
I
think
very
much
in
consistent
with
earlier
earlier,
experts
I
consider
the
city's
ADI
effort,
fixing
our
property
tax
assessment
and
revenue
system
to
be
an
act
of
heroic
fiscal
proportions.
I
believe
that
no
real
of
that
no
real,
efficient
tax
structure
changes
could
have
been
implemented
until
the
property
tax
system
properly
reflects
real
market
values
of
all
categories
of
property.
Q
Second,
I
learned
a
long
time
ago
that
each
dollar
of
revenue
raised
should
be
raised
in
a
way
to
minimize
the
negative
effects
on
the
local
economy,
and
hence
the
various
tax
bases
that
you
hear.
Bob
Inman
and
several
other
experts
here
testify
and
call
that
more
efficient
taxation
and
least
least
distortionary
taxation.
I
think
the
easiest
practical
way
to
meet
that
requirement
is
to
fashion
and
tax
a
tax.
That
applies
a
low
rate
and
I
should
have
put
in
very
low
rate
to
the
largest
and
widest
and
growing
possible
base.
Q
Nothing
in
my
three
decades
of
experience
in
local
government
finance
has
come
even
close
to
changing
my
mind
on
that.
In
that
vein,
I
would
very
much
agree
with
the
efforts
to
lower
direct
business
taxes
and
rely
more
on
the
local
property
tax
for
both
municipal
and
school
district
revenues,
but
not
all
business
taxes
are
created
equal.
It
is
my
belief
that
we
reduce
rates
on
the
wrong
tax
in
the
business
world.
Q
The
gross
receipts
tax
instead,
the
real
harm
to
our
local
economy
and
hence
employment
demand
is
our
own
corporate
income
tax
conveniently
named
the
net
income
portion
of
the
bir
t
and
forever
confused,
even
by
tax
experts
with
the
net
profits
tax.
Now
that
the
federal
federal
corporate
tax
rate
has
been
reduced
from
thirty
five
percent
to
twenty
one
percent,
our
six
and
a
half
percent
corporate
tax
add-on
is
even
more
of
a
disadvantage
than
it
was
before.
Q
This
has
been
partially
addressed
by
the
shift
of
sales,
all
sales
factors
in
calculating
the
base,
but
this
is
really.
This
is
still
really
a
bad
local
tax
I
continue
to
recommend
that
every
available
dollar
for
tax
reform
be
used
to
lower
the
net
income
tax
rate
as
quickly
as
possible.
Shifting
away
from
this
tax
and
to
property
tax
is
a
central
component
of
the
levy.
Sweeny
tax
reform
proposal,
which
you
heard
about
earlier.
Q
In
conclusion,
even
with
these
positive
steps,
I
still
consider
Philadelphia's
tax
structure
to
be
unnecessarily
inefficient,
in
that
it
has
a
greater
negative
impact
on
the
city's
economic
growth
than
it
needs
to
be
to
generate
any
given
level
of
revenues
deemed
necessary.
This
relative
disadvantage
is
well
understood
by
businesses
and
business,
but
business
advisors
and
still
significantly
harms
our
economic
and
fiscal,
fiscal
condition,
independent
of
the
very
positive
demographic
and
economic
changes
we
are
witnessing.
Q
C
R
Afternoon,
chairman
Johnson
members
of
the
legislative
oversight
committee,
my
name
is
Darrell
Davis
I'm,
the
manager
of
local
government
and
civic
affairs
at
the
chamber
of
commerce
for
Greater
Philadelphia.
Thank
you
for
the
opportunity
to
testify
on
this
matter.
The
Chamber's
missions
to
attract
retain
and
grow
jobs
for
the
city
and
region.
We
follow
the
principles
of
economic
competitiveness
to
guide
our
public
policy.
We
believe
that
government
must
be
conscious
of
the
overall
cost
of
doing
business
as
a
release
to
taxes,
fees,
insurance
and
regulatory
expenses.
R
In
order
to
provide
a
competitive
business
environment,
our
region
should
strive
to
provide
efficient
services
with
the
lowest
possible
tax
rates.
Taxes
should
be
broad-based
and
not
target
a
particular
industry
segment
and
need
to
be
shared
equitably
between
businesses
and
citizens.
In
2003,
the
Tax
Reform
Commission
provided
the
city
with
the
10-year
plan
to
reform
the
tax
system
by
offering
targeted
recommendations
to
increase
the
city's
overall
competitive
edge.
Key
recommendations
included
accelerated
wage
tax
reductions,
reforming
the
business
privilege
tax
currently
now
known
as
the
bert,
and
amending
real
estate
taxes
all
without
reducing
necessary
services.
R
The
city
provides-
and
you
know,
drew
a
moment
ago
referenced.
You
know
the
status
updates
with
those
taxes
for
tax
reform
recommendations.
The
chamber
has
worked
with
past
administrations
and
city
councils
to
enact
a
number
of
the
tax
reform
commission
measures.
However,
we
believe
that
more
must
be
done
to
improve
the
tax
structure
and
overall
competitiveness.
Currently,
currently,
we
are
working
with
City
Council
in
the
mayor
on
a
number
of
local
tax
reform
issues,
and
we
believe
that
any
policies
related
to
tax
reform
locally
should
be
taken
with
action
by
the
mayor
and
council.
R
First,
rather
than
other
measures
as
we
strive
towards
local
tax
reform,
we
will
work.
You
know
with
officials
as
it
relates
to
real
estate
taxes
relative
to
the
suburbs
and
other
cities.
Philadelphia's
real
estate
taxes
are
low
and
as
a
matter
of
public
policy
and
recommended
by
a
number
of
folks
that
testified
today,
real
estate
taxes
could
be
increased
politically.
R
This
may
be
difficult
to
enact
because
the
impact
on
residential
property
owners,
particularly
low-income
residential
homeowners,
but
in
order
to
help
implement
this
agenda,
the
chamber
would
support
adding
more
exemptions
and
waivers
to
protect
residential
property
owners.
Like
the
homestead
exemption,
the
chamber
will
not
support.
You
know
significant
and
disproportionate
local
tax
increases
on
employers
to
address
shortfalls,
and
we
believe
that
property
tax
is
the
way
to
go
wage
and
business
taxes,
as
we've
heard
earlier
from
many
folks.
R
That
testified
remain
uncompetitive
when
compared
to
other
cities
and
suburbs
Philadelphia's
wage
taxes,
almost
four
times
to
regional
median
and
is
continuing
to
be
a
barrier
of
economic
growth
as
a
matter
of
public
tax
policy.
This
this
rate
could
be
reduced
a
lot
faster
than
currently
set
forth
within
the
five-year
plan.
We
believe
that
mayor
and
city
council
should
use
possible
increases
in
real
estate
taxes
to
fund.
You
know
the
accelerated
reduction
in
wage
and
business
taxes
as
it
relates
to
the
UN,
owe
tax
and
also
a
myriad
of
other
taxes,
especially
the
parking
tax.
R
The
mayor
and
city
council
should
not
raise
the
UN,
owe
tax
and
really
focus
on
lowering
the
parking
tax
rate
from
20
two
and
a
half
percent
to
15
percent.
There's
a
link
between
rising
commercial
property
values
in
the
amount
of
human
actions
use
and
occupancy
do
pretendin
and
2012
City
Council
voted
to
raise
the
UN
no
tax
on
businesses
in
Philadelphia
by
19
percent,
which
equates
to
about
a
20
million
dollar
increase.
We
strongly
believe
that
another
increase
is
economically
counterproductive
and
will
encourage
businesses
that
can
move
to
do
so.
R
A
A
Someone
I
asked
the
three
of
you
to
do
something
funny
out
of.
If
you
don't
mind,
I,
probably
all
owe
you
a
favor
in
the
future
I'm
still
going
through
your
testimony.
We
could,
if
you
summarized
it
to
the
best
of
your
ability,
only
because
I
have
to
have
a
tower.
I
have
to
pick
up,
so
you
know
until
universal
pre-k
kick
in
I'm
on
the
hook
as.
L
L
Mullet
have
a
good
one.
Sir
hi,
my
name
is
Chris
Sarah
I'm,
the
CEO
of
arc
web
technologies.
Thank
you
very
much
for
your
valuable
time.
It's
an
honor
to
be
here
today.
My
name
is
Chris
Sierra.
I
Lou
built
Vista
neighborhood
with
my
family
and
I'm.
The
CEO
of
our
core
technologies
located
in
Old
City,
is
the
short
version.
I
was
a
small
business
Person
of
the
Year
for
the
chamber
of
commerce
of
2016.
That
same
year,
my
company
was
in
the
Inc
500
fastest.
L
Sorry
that
same
year,
my
company
was
in
the
Inc
500
fastest
growing
companies
in
the
country
and
number
24
fastest
growing
in
our
industry.
I
was
able
to
bootstrap
my
company,
and
that
means
I
didn't
receive
any
outside
capital
from
investors.
My
family
or
anybody
else.
I
spent
a
lot
of
time
thinking
about
business
formation
and
how
kids
in
Philadelphia
can
walk
a
similar
path
as
me
to
become
more
independent,
I
want
to
point
out
that
business
formation
and
business
attraction
are
two
completely
different
goals
and
I
personally
believe
business
formation
doesn't
get
enough
attention.
L
How
do
we
create
an
environment
where
companies
like
Amazon
are
more
likely
to
form
here?
How
do
we
create
an
environment?
If
we
had
that
environment,
then
what
would
stop?
What
would
stop
ten
companies
from
growing
to
be
the
size
of
Amazon?
It
seems
to
me
that
fostering
the
environment
for
startups
to
thrive
is
going
to
be
much
more
scalable
for
us
than
figuring
out
how
to
solve
a
single
company's
scalability
problems
as
much
as
I
love.
Philly
delivers,
as
our
external
marketing
campaign
I'd
love
to
see,
grow.
10
Amazon's
become
our
internal
marketing
campaign.
L
We
need
to
make
it
easier
for
companies
to
survive
in
Philadelphia
in
their
first
few
years
of
business.
We
have
an
extremely
counterproductive
policy
where
businesses
must
pay
taxes
almost
a
full
year
in
advance,
or
else
face.
Significant
penalties,
I've
affectionately
been
calling
this
the
second
year
slap.
L
Most
people
only
discover
this
policy
when
they
pay
their
first
year
of
taxes.
So
imagine
when
you
pay
your
taxes,
this
April,
that
you
have
to
pay
the
rest
of
2018
in
advance.
How
are
you
supposed
to
pay
your
taxes
on
salary
when
your
employer
hasn't
even
paid
you?
Yet
it's
not
possible
unless
you're,
already
rich
or
you're
lucky
enough
to
borrow
money.
Somehow
every
business
in
Philadelphia
is
basically
loaning.
The
city
money
to
operate
and
business
owners
and
shareholders
are
affected,
but
also
the
kid
that
rents,
a
kiosk
at
a
shopping.
L
L
If
you
look
at
the
top
20,
only
three
of
them
or
for-profit
companies
and
I
would
say
that
it
just
shows
a
systemic
problem
throughout
the
city
and
it's
against
to
some
degree.
For-Profit
companies
in
this
town
and
I
would
argue
that
this
unfair
tax
policy
is
one
of
the
reasons
councilman
dumb
earlier,
even
pointed
out
the
real
estate
problem
with
nonprofits
and
how
much
real
estate
they
actually
own
relative
to
how
much
tax
they
pay,
which
is
approximately
a
third
I'm.
L
Certainly
not
the
first
person
to
raise
the
issue,
and
it
was
mentioned
in
recommendation
and
taunt
21
by
the
tax
reform
commission
in
2003.
I,
was
delighted
recently
to
discover
that
councilman
taubenberger
nice
to
meet.
You
recently
proposed
bill
number
one:
eight,
zero,
zero,
seven,
seven
to
specifically
address
this
issue
for
new
companies
that
are
being
formed
and
I'll
just
say.
Business
attraction
is
important
for
our
city
and
I'd
like
to
see
even
more
attention
on
business
formation
so
that
we
can
grow
ten
Amazon's.
A
N
My
name
is
John
Kosir
I
am
the
founder
and
CEO
of
a
venture
capital
fund
called
South
box,
30
million
dollar
fund
co-located
between
here
in
Philly
and
New
York
I'm
gonna
summarize
my
points
because
I
think
many
of
them
have
been
made
better
and
more
eloquently
earlier
today,
but
the
the
the
main
thing
that
I
think
about
as
an
investor
is
how
to
create
enabling
environments
for
startups
to
grow
and
I
think
the
city
should
start
to
think
about
its
ecosystem.
In
the
same
way,
there's
a
study
that
came
out
of
San
Francisco.
N
It
was
not
necessarily
limited
to
San
Francisco,
but
it
looked
at
the
the
rate
of
job
creation
by
the
tech
sector
in
the
Greater
economy
and
it
found
that
for
every
tech,
job
or
startup
job
created,
4.3
non
start-up
non
tech
jobs
were
created
in
the
ecosystem,
so
that's
pretty
significant
driver
of
growth.
Additionally,
the
another
study
by
the
US
Chamber
of
Commerce
found
that
50
percent
of
new
jobs
created
in
the
country
are
coming
from
startups
of
some
type.
N
So
it's
critical
to
think
about
the
opportunity
to
to
support
companies
in
their
infancy
and
I.
Think
the
only
asks
that
I
have
that
would
be
different
from
most
of
the
remarks
made
earlier
today
is
to
create
a
distinction.
We
talked
about
targeting
regions,
geographic
regions.
We
talked
about
targeting
big
corporate
companies,
I
think
the
city
should
think
about
ways
of
targeting
the
drivers
of
growth
at
the
small
in
those
companies
to
Chris's
point
that
can
become
the
amazons
of
tomorrow.
N
Those
companies
likely
have
no
revenue
and
if
they
do
have
revenue,
they
probably
aren't
profitable
yet
and
I
think
it
decouples
the
the
definition
from
anything
that's
time
based
or
region
base,
it's
really
all
about
the
capital.
The
second
thing
that
I
think
would
be
encouraging
to
investors
is
to
look
at
deferral
on
stock
options
for
foreign
investors.
It
it
attracts
capital
from
outside
the
region
to
Philly,
which
is
something
we
desperately
need
to
do.
Thank
you.
Thank
you
very
much.
M
Honorable
chairman
Johnson,
my
name
is
another
Sima
Xin
hoye.
I
am
the
founding
president
CEO
of
the
asian
american
chamber
of
commerce.
You
have
a
written
testimony
with
you.
I
will
not
go
through
it,
but
I'd
like
to
make
a
couple
of
points.
If
you
mean
most
of
our
members
are
basically
in
the
suburban
counties.
M
One
of
the
reason
is
it's
easy
to
do.
Business
in
suburban
counties,
the
tax
laws
and
the
commuting
and
the
whole
works,
and
second
thing
is:
there's
a
perception
that
the
city
is
not
a
business
friendly
city
and
the
prediction
you
know
they
cannot
predict
down
the
road
what
taxes
they
have
to
pay
if
they
move
into
the
city.
So
something
you
need
to
consider.
Another
point
I
need
to
make
is:
basically
we
have
a
lot
of
immigration
populations
coming
into
this
city.
They
are
here
to
stay.
M
There
are
business,
they're,
opening
up
businesses
and
we
need
to
provide
some
tax.
Maybe
taxes
when
you
do
the
tax
reforms,
consider
a
start-up
help
and
also
help
to
grow
the
business
because
they
come
from
different
culture
and
the
different
tax
in
their
minds,
so
something
educational
process
that
needs
to
be
done
because
they
need
employment,
and
you
know
the
businesses
will
give
them
unemployment,
and
this
is
something
you
will.
We
request
you
to
consider
that.
Thank
you.
No.
A
Thank
you
very
much,
and
I
want
to
take
a
moment
sincerely
thank
all
three
of
you
for
your
testimony,
but
to
the
two
gentlemen
and
our
business,
and
we
really
thank
you
for
taking
time
I'm
running
a
day-to-day
business,
to
give
us
an
insight
as
being
small
business
developers
who
are
taking
your
business
to
the
next
level
and
when
you
talk
about
making
sure
we
don't
stuff
out
to
small
businesses
before
they
even
get
a
chance
to
develop.
That's
refreshing
they're
here,
because
it
also
gives
us
a
chance.
A
We
hear
from
Comcast
we're
here
from
the
brandy
wines
of
the
world.
We
hear
from
the
Liberty
Property
Trust
corporations
of
the
world,
but
gain
from
you
specifically
on
how
we
should
target
and
help
businesses
get
to
the
next
level.
It's
also
refreshing,
so
I'll
follow
up
with
my
colleague
count
welcome
Tom
Berg.