Taxing our way to prosperity ....here comes the business tax
Original post made by Chris on Mar 10, 2007
Nevermind that, as the linked piece shows, there is a fairness issue since businesses already pay a majority of the taxes in town. The real issue is that Palo Alto, which already has a reputation of being an expensive and unfriendly place to operate, is adding one more reason for businesses to stay away.
This tax might give the Council a year or so reprieve from the fiscal hanging that's coming to them, but in the long run it can only make the problem worse.
There's plenty of commercial vacancy in the south bay and peninsula real estate market right now. If you were a company looking to expand or relocate, how much more likely is it that you'd choose Palo Alto, which if Bern Beecham has his way, will be the only local city with this kind of levy?
If our companies start putting their employees in Sunnyvale or Mountain View, they'll not only take the illusory $50 per head Beecham covets, they'll take their property, sales and utility tax revenues with them - actually costing the city revenue.
Then we'll see more posts on this forum asking why Mountain View has a surplus, while Palo Alto struggles. (See here:Web Link)
Oh well, at least Beecham can claim he's doing something about the jobs/housing imbalance.
on Mar 10, 2007 at 8:58 pm
Chris, spreading more fear, uncertainty and doubt again? You've got to stop crashing Palo Alto's growth party, Chris. :)
How is a mere $50 a head, added to tens-of-thousands of other salary and benefit dollars required to maintain an employee, going to make a difference. Beecham's plan is intriguing, and deserves a closer look.
on Mar 11, 2007 at 1:07 am
$50 per yer per employee isn't much, I agree with Winslow.
Furthermore, what are the alternatives? Tax residents even more than they are being taxed currently, or more bonds (ie more taxes on residents). A lot of us can barely pay our current property taxes, whether we are long-time or newer residents.... Please no more bonds, no more parcel taxes!
Yes on the $50 per year per employee for businesses.
on Mar 11, 2007 at 9:37 am
City Council must stop looking to the business community to bail them out of the budget problems they seem to continually create for themselves. The police do not need a new building, the libraries are fine and the city should stop providing services that attract the homeless to Palo Alto. That should save enough money to balance the budget. Now if only City Council had the courage to actually do it.