Thursday, September 23, 2004

Pittsburgh Commuter Tax: Bad Idea

One one hand, the Mayor puts forth a "phony" budget. One the other, City Council President, Gene Ricciardi, has asked the Mayor to cut to the chase and push now for the "commuter tax."

The commuter earned income tax is a wrongheaded strategy that is unlikely to bring about the desired results. First, this is a tax paid mostly by city residents. Next, the tax can't fetch money for the city from those who live elsewhere if they have to pay elsewhere. In all, 28,609 commuters from twelve communities would pay no commuter tax.

Moreover, a many home rule communities (with 19,231 commuters) can raise their home rates and lower property taxes so as to nullify any gains to Pittsburgh.

See the report has the details. Thanks Jake.

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