Report details why Philly's a stupid place to start a business

[Dave]

I'm sure people who care even a little have known most of this stuff for years. I guess the question is whether this kind of publicity will get this sort of thing on the voting agenda of the average Philadelphian.

SBN contends that the job-creation numbers bear that out. Philadelphia ranked 10th among the 11 largest U.S. counties in jobs it had to offer last year: 42 jobs per 100 people, compared with 147 for New York and 116 for Dallas.

The report outlines a number of city deficiencies cited by business owners, including onerous and antiquated policies and practices on licensing, permitting, and inspections; burdensome taxes; insufficient small-business financing; and poor communication between government and the small-business community.

It even slams the requirement for a cashier's check in a number of city departments where business owners must do business.

Diane Mastrull: Pointing out the obstacles - Philly.com

[ACretin]

Nice article. Last in job growth, but likely first in highest taxes. An older study had us as #1 or #2 in highest taxes, and #49 or #50 in lowest job growth - almost a perfect inverse correlation. Bottom line: any student taking a business entrepreneurship class, or pursuing any type of startup, WOULD HAVE TO BE A MORON TO PICK PHILADELPHIA FOR A LOCATION, based on the much better tax scenario even just over the county line in Bucks, let alone in other more tax favorable states like New Hampshire or Montana. And phase-ins or outs of taxes don't work; people just wait till it's in or out all the way. We need to act now and decisively to restore growth to Philly, and get rid of our poverty-pimp tax-raising idiots in city council and the mayors office. They haven't done anything but raise taxes further (both retail and real estate taxes), and cut city services. Nothing has changed. Nothing will change at the job growth level either. It's a shame we've wasted another 4 years on non-existant growth, and are set to waste yet another 4 years. But it doesn't have to be this way. With a few simple changes to the tax code, this could be a boom town and a much happier, safer place.

[Sharkfood]

The article did not shed much light on what exact practices are unfriendly.

We know the business tax structure is unique, but that's old news.

Permitting could be consolidated in one place.

What else is there?

[Dave]

The article did not shed much light on what exact practices are unfriendly.

We know the business tax structure is unique, but that's old news.

Permitting could be consolidated in one place.

What else is there?

Definitely taxing bloggers and people with one rental property as if they were a business. The article also details some of the hoops you have to jump through to hang a sign.

That's a good point, though. Would be interesting if some of us could read the report and point stuff out here. Here's a link to get a copy of the report:

http://www.sbnphiladelphia.org/susta...ad_report_form

[Hospitalitygirl]

Definitely taxing bloggers and people with one rental property as if they were a business. The article also details some of the hoops you have to jump through to hang a sign.

That's a good point, though. Would be interesting if some of us could read the report and point stuff out here. Here's a link to get a copy of the report:

Taking Care of Business - Resources - SBN Philadelphia: Sustainable Business Network: Green Companies, Green Products, Green Jobs

You really can't have all permitting in one place. And people don't understand but in restaurants in particular there is a requirement by the Health Department that doors to kitchens open in one direction and by L&I in the opposite direction.

The people at the intake counters could be more helpful, but the reality is that most only know, if we're lucky, their particular aspect of work. When you reach mid-level Health Department and L&I people, they're generally *extremely* knowledgeable and helpful.

Some of this, from my own experience in mapping the process, comes from people not informing themselves before they start, as fully as possible. There is information available, and should be part of business planning, but not everyone avails themselves of it.

I am in the process of downloading the report and will look at it and make comments later.

[thoth]

A part of this I rarely hear about is how much money the city loses by the sheer number of people who just dodge ridiculous taxes instead of working with a broken system.

The "blogger tax" label was useful to describe the stupidity of charging low to no revenue start-ups, but beyond that, the city basically failed to collect any of that money. People talk about big corps leaving the city, but there's millions in revenue lost to little guys just ignore the city's jumbled tax code. Same with L&I and zoning. Why legally pull permits when it's expensive/huge hassle if you can just dodge it.

[Dave]

A part of this I rarely hear about is how much money the city loses by the sheer number of people who just dodge ridiculous taxes instead of working with a broken system.

The "blogger tax" label was useful to describe the stupidity of charging low to no revenue start-ups, but beyond that, the city basically failed to collect any of that money. People talk about big corps leaving the city, but there's millions in revenue lost to little guys just ignore the city's jumbled tax code. Same with L&I and zoning. Why legally pull permits when it's expensive/huge hassle if you can just dodge it.

Couldn't agree more. When I went to get my BPT license for my one rental property, I was told by one of the employees, after I wondered why it wasn't possible to do this online rather than taking time off from work and waiting in two separate lines, that she "wouldn't have done this if she were me."

[Garret]

Couldn't agree more. When I went to get my BPT license for my one rental property, I was told by one of the employees, after I wondered why it wasn't possible to do this online rather than taking time off from work and waiting in two separate lines, that she "wouldn't have done this if she were me."

I had the same experience years back when I realized my (suburban) employer had not been taking city wage taxes out of my paycheck. The lady on the phone seemed to think I was insane for wanting to rectify it.

[billy ross]

Couldn't agree more. When I went to get my BPT license for my one rental property, I was told by one of the employees, after I wondered why it wasn't possible to do this online rather than taking time off from work and waiting in two separate lines, that she "wouldn't have done this if she were me."

Rental licenses used to be extremely optional. Now you'd be a fool to not have them. Not only do they protect your zoning and use registration, but they protect you from PGW's goons. The left hand is talking to the right hand now, and you've got to watch yourself.