On February 12, a hearing was held in Philadelphia City
Council chambers, starting at 10:00 AM, relating to
Philadelphia Controller Jonathan Saidel's tax reform
package. GroundSwell has been informed that
Pennsylvanians Joshua Vincent, Jake Himmelstein, Kenneth
Ford, and Richard Biddle attended the hearing. About 22
members of the Pennsylvania Fair Tax Coalition testified at
the Philadelphia hearings, including Alanna Hartzok, Joan
Sage and Uda Bartholomew.
In Jake Himmelstein's observation, little was
accomplished at the hearing since it was only attended by
the President of City Council, Anna Verna, and Councilman
at large Cohen, and the daily press coverage was spotty.
The major spoken opposition was from a new car dealer
association and parking lot operators who claimed that the
land value tax would be a great burden. However, the fact
that there were 54 people and organizations willing to
testify for tax reform was an encouraging sign.
Center for the Study of Economics President Joshua
Vincent has closely followed, and kept other Georgists
informed, about the developments on the proposed tax
reform, which includes Land Value Taxation. (See Nov.-Dec.
2001 GroundSwell.) "We have lots of silent opposition,"
Vincent emailed, "and we need to do what we can to help,
because the City Controller has taken a lot of heat for
this good idea."
A fax proposed to be sent to the Philadelphia Mayor,
Council, and other important officials had been prepared and emailed to Georgists by
Vincent, as follows. A convenient way was offered to have
the fax delivered through the web site www.hallwatch.org.
"Especially important to the future of Philadelphia
is the component of the program known as Land Value
Taxation (LVT).
"LVT is a way to fix the fatal flaw of the modern
property tax: When someone builds and makes the city a
better place to live their taxes sharply increase. If one
lets a building collapse or defies the market by keeping
land vacant, the tax bill remains low. That's not only
dumb, it's wrong. It rewards dysfunction and punishes
commitment to the community. End of story.
"LVT is different from the usual abatements and
exemptions. One does not have to be "connected", clever or
have a brace of legal staff to wade through the maze of
forms. LVT applies to all property owners across the
board. The most modest of homesteaders will see that
improving a building on her own dime and her own time will
no longer mean paying a penalty. LVT is a program that
will help that part of Philadelphia met with either neglect
or scorn; our hard-pressed working neighborhoods. They
have never had a program or privilege. This program is
their chance.
"If the land tax is adopted almost all homeowners will
see a tax decrease.
"Mr. Saidel's program is progressive and proactive.
Philadelphia collects more of its revenue from the wage tax
than any other source. We know that we have to reduce that
corrosive tax now: It drives people away, and it drives
business away. Yet, we need to support the programs and
services that so many Philadelphians depend on. The State
is NOT going to help us anytime soon. Therefore, the
innovative land tax is the logical course Philadelphia
should take.
"With LVT, Philadelphia has a way to collect the same
amount of revenue from the property tax and yet not punish
the homeowner and small business.
"PLEASE! Support a program that will provide real tax
relief to the vast majority of Philadelphians that don't
have a program to help them.
"PLEASE! Let Philadelphia have a chance to determine
its own fate.
"PLEASE! Give the citizens of Philadelphia a reason to
stay in the city we all love.
"Thank you."
Several letters to the Mayor and City Council on the
land value tax can be found on the web site
www.hallwatch.org. Letter writers whose names GroundSwell
readers will recognize are Kenneth R. Ford, Jacob B.
Himmelstein, Joshua R. Vincent, Lucia Cippoloni, Arthur
P. Yeatman, Uda B. Bartholomew, and S. Arthur Rybeck,
Jr., DDS. Also, S.G. posted a "Dear City Council &
Mayor Street" message with Ted Gwartney's entire
"Estimating Land Values" presentation given July, 1999 in Arden, Delaware. (See July-August, 2000
GroundSwell for shortened version.)
The Philadelphia Daily News on February 26 published an article
about Philadelphia's burdensome wage tax and included an interview
with Norristown accountant Jacob Himmelstein "who testified about tax reform
before the City Council on February 12."