Tax reform is like government reform: we don't do it just for the sake of doing it. We do it as a means to an end: to grow our city and improve life for everyone.

So the guiding principle of tax reform must be to invest in long-term growth strategies that provide opportunities for all Philadelphians to raise their standard of living. This is the only way to reduce poverty, expand our tax base, and minimize individual, property, and business wage taxes.

The 10-year residential tax abatement has helped promote market-rate residential construction. But this residential growth has been unevenly distributed and has created a lack of tax fairness, as existing residents of booming communities face skyrocketing property tax bills. The 10-year abatement should be phased out as a blanket benefit and converted to a targeted incentive for the kind of development we want: mixed-income, green and sustainable, mixed-use, and so on.

We also must examine our business taxes. It would be satisfying simply to cut business taxes across the board, with no thought of the impact on city services – many of which are already stretched to the breaking point. We cannot, however, ignore the consequences of cutting taxes. I believe we should focus on phasing out unfair, irrational taxes like the Gross Receipts Tax. This tax is burdensome for small and medium-sized business and gives the impression that Philadelphia is a dysfunctional, irrational city that is hostile to business. I believe that the unfairness of the Gross Receipts Tax, rather than the actual tax rate, is a major driver of Philadelphia’s poor business climate. New York and other cities have shown that a well-managed city with a well-regarded government can draw businesses in, even though the tax burden is not as low as in some of the surrounding suburban areas. Until economic growth allows us to cut taxes more drastically, Philadelphia must focus on tax reform that makes life easier and more dependable for business.