Temple Prof. Says Sales, Property Tax Hikes 'Least Painful'

by KYW's Mike DeNardo

Several tax policy experts say Mayor Nutter's proposal to hike Philadelphia's sales and property taxes is the least painful for the city in the long run (see related story).

If you have to raise taxes, hiking the property and sales taxes are less likely to cause long-term pain than raising the wage and business taxes, says Temple University management science professor  Dr. Frederic Murphy:

"The real estate tax is probably the best choice in terms of not driving jobs out of the city.  And the same thing with the sales tax. Here, you're taxing consumption, not the act of job creation."

Murphy says a temporary two-year property tax hike shouldn't drive residents away:

"It probably will not have too big an impact.  But if it becomes permanent, it'll start to hurt the city economy."

Murphy was an advisor to the city's Tax Reform Commission.