Philadelphia Mayor Proposes Soft Drink Tax and Trash Collection Fees

Philadelphia, like most urban centers, has had a cash flow problem the past couple years. After 18 months of fiscal decline and two massive rounds of cuts, the city managed to slash $2.4 billion from Philadelphia's five-year budget plan since 2008. But the City still faces a $125 to $150 million deficit in 2011, which is anticipated to increase to $500 to $700 million, exacerbated by lower tax revenues and unexpected snow removal costs this year.

The mayor tried to fix things at first by closing libraries, pools, recreation centers and some firehouses, and not paying for police presence and clean up after annual ethnic parades and events. A loud outcry saved the libraries, but layoffs did take place in the fire department, and some city pools are closed. Planned tax reductions were delayed and an additional one percent sales tax was approved, raising Philadelphia's sales tax to 8%, while New Jersey and the surrounding counties are only 6%. He also deferred payments into the pension plan.

He now proposes a trash collection fee that could cost residents between $200-$300 a year, and taxing sugary soft drinks at TWO CENTS AN OUNCE!

Let's first address this sugary soft drink tax, which doesn't, by the way, affect diet drinks. Now, does the Mayor think people are stupid? Does he think people, like me, who can SEE the Montgomery County border are going to buy soda in Philly (and I only buy "real" soda when I have company) when they can go over the border and get it cheaper!? And once people start driving to Bucks or Montco or New Jersey for their soda, they're just going to say, the heck with it, I might as well do ALL my shopping here, and then the city loses the tax revenue on an entire shopping order. People already go to Jersey for their gas, to Delaware for their cigarettes, and Maryland for their booze. How much trouble to head to Abington, Bensalem or Chester for their supermarket needs? As for the "health" benefits of this tax -- give me a break! Not happening! People who swill soda will continue to swill soda, they'll just buy it someplace else.

As for that trash fee, not bad enough we pay the highest sales tax in the five-county area, our property taxes all soared the past year, and the business taxes drive small business out of the city regularly. Now he wants to insult us by imposing a trash collection fee?

Here's a thought: how about attaching some of the bank accounts of those 2,000 city employees who owe over $5 million in property taxes, and the owners of 100,000 commercial and slum lord properties who owe approximately $425 million in property taxes! And this does not include unpaid 2009 property taxes. The city has, to its credit, attached the paychecks of those city employees in arrears if they don't voluntarily start a payment plan, but those people make over the limit to qualify for the installment plan on their property taxes. My husband and I are both on social security and we don't qualify, but these deadbeats are being given a break! Collecting this $430 million dollars in uncollected property taxes would go a long way towards closing the budget gap, and the Mummers, firemen, and recreation centers wouldn't have to go begging.

Then there is the DROP Program. Designed to help the city better manage for retirements and vacancies, city workers set a retirement date four years in advance, their pension benefit is frozen and pension payments start accruing in an interest-bearing account. They then receive those payments in a lump sum when they retire, and also start collecting their annual pension. The problem is, elected officials like the Mayor and city council have joined this program, retire for one day, collect their lump sum, and then go back to work and continue collecting a salary! Eliminating elected officials from this program could save the City a bundle. Better yet, eliminating the entire program would save those interest payments that accrue over four years.

So, before the Mayor decides to hit the people least able to afford a trash tax or an extra $2.88 for a 12-pack of soda, perhaps he should try hitting up the people with some money first, collecting delinquent property taxes and stop letting elected officials and city workers rape our treasury!

Sources: Philly.com: Nutter Preparing a Challenging Budget; Phila. Govt. Workers Fail to Pay Property Taxes; Tax Delinquents Listed by Amount; Council to Revisit Elected Officials in Drop