Business association addresses onerous Philadelphia taxes
Midlantic Business Association task force head outlines agenda
PHILADELPHIA – May 18, 2005 – On Monday, Midlantic Business Alliance (MBA) announced an initiative to assist its Philadelphia-based business members laboring under the current tax structure in Philadelphia. One option being reviewed is relocation.
MBA Board Member Stephen Markowitz was selected on Monday to chair the task force in this matter. He elaborated on the initiative.
“First we need to find an accommodation with the city to resolve the tax issues, but any window for such an accommodation is rapidly closing. I am not sure, barring positive action by City Council that there exists any other mechanism for solving the problem of an untenable tax structure in Philadelphia.”
“Philadelphia Forward, has to focus on the problem from within the city limits. Another organization, Select Greater Philadelphia, however, certainly needs to explore all avenues for developing the region as a whole, offsetting the drain on energy and resources created by the current tax situation.”
“If the city cannot be a partner in developing a strategy to ameliorate the tax burden, we must focus on developing the region from the perimeter inward. Philadelphia is the hub but there are alternatives for strengthening the region by giving businesses incentives to generate jobs in the suburbs. The success of such companies can also impact the city. Philadelphia needs to decide if it will enrich the business environment or continue to weaken it.”
MBA will begin soliciting proposals and demographics from all metro county economic development offices as well as their counterparts in larger suburban cities. Several counties in New Jersey will also be invited to participate, specifically Camden, Burlington and Gloucester Counties.
On the matter of the possibility that this relocation initiative is another accelerator for the decline of the city, Markowitz responded that the decline is well underway and any effort to buttress the entire region can only make the city stronger in the long run. Citing Fortune Magazine’s recent report rating Philadelphia 60 out of 150 metro regions in terms of business environment, Markowitz reported on a local official who told him that, “at least we’re not last.” Markowitz offered that as an example of the disconnect of bureaucrats from the struggles of businesses in the City. He wondered if we really want “Philadelphia, the City that Loves You Back,” replaced with, “Philadelphia, at least we’re not last.”
Midlantic Business Alliance, a Pennsylvania non-profit membership organization, provides advocacy, networking opportunities, free business counseling, education and more to its small business members.
Markowitz is Chief Executive Officer of TAI, Inc., a regional association manager and administrator. The company provides services and guidance to more than 16,000 businesses through 13 different business organizations.
For more information, contactGayle Haeffner at (610) 604-4994; by e-mail ghaeffner@mbainc.org.
