Tuesday, March 2, 2010

How To Solve the Current Fiscal Problem in Philadelphia Without New Taxes or Fees!

Here we go again...

It was nearly a year ago when I posted the first time about how to solve the fiscal situation in Philadelphia, but has seemingly always been the case, no one really listened.

The ideas were simple: Start enforcing the law, go after Tax Evaders, raise only one tax to help raise cash in the long term, close down maybe one library that most likely isn't needed that much... oh, and instituting a bike license. Actually, that last one gained some ground, but by the same guy who now wants to tax my soda and wanted to impose a fee on plastic bags. Ever notice that laws and taxes designed to make things "better" always limit what little freedoms we enjoy?

Oh, and I proposed legalizing same-sex marriage to help with the budget more times than I can count.

So, how do we fix it this time? What, exactly, is the "magic pill" this time?

1. STOP THE ABATEMENT PROGRAMS!

"Wait, isn't that why Philadelphia gained so many residents over the past few years and caused a rebirth in Northern Liberties in Fishtown?" Yes, it is. Now it needs to stop.

For those not familiar with what an abatement is, its basically the city of Philadelphia saying you don't need to pay taxes on the home you just bought. This abatement is supposed to go on for 10-years. Mind you, during the time we've had this program, despite more and more residents coming to town, tax revenue has gone down and now the city is going broke.

I think you can see where I'm going with this.

2. RAISE PROPERTY TAXES (On Out-of-Towners)

Well, here we go, another really fierce-sounding idea, but one that needs to happen. Why?

At the corner of Juniper and Chestnut, above the Valu-City store, is one of the most beautiful examples of architecture in Philadelphia. The facade of this building has deteriorated over the years thanks in large part to the owner who refuses to do any basic upkeep on the property over the store. Why? Because he is simply squatting on the property, waiting to sell it.

The owner lives in New York City.

When it comes to property owned by people who don't live in Philadelphia who let their property crumble either because they simply don't care enough to take care of it or because they refuse to keep it in a decent condition, we need to start doing something! I'm not saying Philadelphia should only for Philadelphian's, but I am saying that charging those who let their property decay a extra fee of 25% - 50% of their real estate taxes is what we need to do to either get them to fix up their property or sell it to someone who will.

3. REFORM THE WAY PROPERTY TAXES ARE DONE

When it comes to the issue of gentrification in Philadelphia, people constantly yell about property taxes going up. One problem; that hasn't really happened at all over the past 5+ years in most of the city.

For the most part, the only real part of Philadelphia over the past 10 years I've seen where people who had lived and done business for forever and a day was South Street, and literally ONLY that street, although the effects were felt on a few other places about 1/4th of a block surrounding it.

Philadelphia Forward does a better job of explaining it than I can in a short post, but basically the way taxes are done now, it should be about 8% of the value of a property, but in certain cases its as much as 34%, and its all done on rough estimates. Again, this is a gross over-simplification on my part, but that's a general idea of what we're looking at here.

Apply the same rate to everyone in Philadelphia (Which is basically what the current law is) and start making sure houses are assessed to their real value.

4. OK, ONE NEW TAX: BOTTLED WATER

OK, this one is more of a vanity idea for me, but hear me out: The plan now is to tax soda because the city of Philadelphia needs the money. But what about bottled water? Bottled Water, in essence, is actually one way the City of Philadelphia is losing money every year. How many people refuse to drink Philadelphia Tap Water and, instead, rather drink bottled water? Considering the fact tap water is "virtually free", and you have people electing to drink bottled water, doesn't it make more sense to tax that instead of soda?

5. LEGALIZE IT!

I'll say it: We need to legalize two things in this city, and that's Same-Sex Marriage and, yes, Marijuana. I want to state now that I'm not a big fan of the second one, but it really makes sense.

As I've stated time and time again, SAME-SEX MARRIAGE MAKES A TON OF CASH! Most states have passed laws allowing it, and the occasional city has legalized it anyway. And marijuana? Not a fan, but considering the fact it's easy to tax, would reduce crime, and generate revenue in various ways (more 24/7 convenience stores, anyone?), tourist dollars, and more people moving here because of the easy access.

And if you're morally opposed to that, remember: Jesus wasn't a big fan of gambling, but this Quaker-based state already approved that. ;)

6. STOP THAT IDIOTIC DROP PROGRAM!

Remember in 2007 when Joan L. Krajewski decided to retire for one full day? In return, she got nearly $300,000!

You would assume that with the city in such financial straights right now that the other people in City Council would, instead, save the tax payers money and not use the Deferred Retirement Option Plan (DROP) program and vote to have it removed.

You would be wrong.
Six city council members have opted into the program – and city officials say combined, they stand to collect more than $2 million when their terms end in two years.

Council president Anna Verna stands to collect the largest sum: $571,679. Marian Tasco will take home $467,566. Payouts for Frank DiCicco, Jack Kelly, Donna Reed Miller and Frank Rizzo range from $189,000 to $392,000.

Source- CBS 3
Notice any interesting names on that list?

Throw in the fact that the cities unions are STILL without a contract, largely because they can't get anything for their pensions, and that $2 Million that these 6 little piggies look even greedier.

So, there you have it! 6 ways to save the city a ton of money, and make a ton as well. I plan on these ideas being ignored, just like always, and wonder why no one listens to common sense.

4 comments:

Chris Somers said...

You have some great ideas in there, albeit some controversial, fiscally they make sense. I will say that the abatement still works in that when the property is sold, there is a whopping 4 percent transfer tax that is paid at settlement. And there are still taxes owed during the 10 years, the taxes are just frozen for that period based on what they were before instead of being raised. Speaking of real estate taxes, I would also say some neighborhoods the taxes are insanely low. In those areas, it would make sense to increase real estate taxes. The flip side to solve the budget crisis would be to look at the expense side of the income statement and make some cuts there in addition to looking for other revenue sources. Great stuff !

America Y'all said...

You do have some great points, but how can you be for bicycle registration and against the soda tax?

Mark Skull said...

Hey Jeremy,

Thanks for the compliments. :)

The main reason I'm up for the Bike Registration is because it actually isn't that bad at all and can actually work towards the favor of cyclists in the end. For example, your bike gets stolen, it can increase the chance of getting it back thanks to being able to prove registration.

Throw in the fact that police would be able to easily enforce cycling laws already in the books, and you have a decent situation. Now, DiCicco's method isn't great, but the threat of it in and of itself helped cut down on the number of accidents, crashes, and people on the sidewalk.

In the end, that was the point. The soda tax is more about getting your money than anything else.

America Y'all said...

Very valid ponts, and I am definitely a cyclist who advocates for following the laws of the road. Much like your thoughts on the soda tax I feel that it was pretty blatant that the proposal of bike registrations were also just a quick cash grab.