Jan 28, 2012

Township Managers Wake Up Shocked!

Township managers are waking up from their nap, shocked! Whose Earned Income Tax did they think was going to be used to pay for this white elephant, the six people who work on Hamilton Street and live in Allentown? The managers have scheduled a meeting with Pat Browne in mid February. At that meeting, Browne will tell them that any left over revenue will come their way. The purpose of this post is to try and restore their dignity, and persuade them to cancel the meeting. Gentleman, there will be nothing left over for the next 30 years. Please understand that the arena will cost at least $160 million dollars. In addition to that, approved private developers, also have $100 million already approved. Pawlowski said recently, while you were napping, that his vision is for $600 million in development. The Earned Income Tax is to be first applied toward the debt service. You're financial managers, how much do you foresee being left over? Also written in the law that nobody read, is the ability to use property taxes, if necessary. This blog maintains that when would be more honest than if. Everyone, everywhere, will be paying for this, but none more than Allentown taxpayers.


Anonymous said...

Perhaps this structure will trickle down neighborhood improvement as with the Camden Yards in Baltimore. It will more likely underpreform however (NY Times 9/7/10 or a simple Google search) and continue to cost taxpayers plenty even after its lifespan is over. In any event, when there are no games planned, Lehigh County can at least get some return if they use it as a homeless shelter as is done in Florida. Rah-rah-rah!

Anonymous said...

This article has a different take on the situation:


michael molovinsky said...

anon 10:04, that article is by the blogger john.jay, who like jon geetings, prefers to see things through the progressive viewpoint. the point is that there was a failure to communicate; even the township financial officers didn't know the score.

Anonymous said...

After $600 Million dollars, the townships will get their fair share.
What's the problem?

ironpigpen said...

It was not all that long ago that Councilman Donovan was derisively referring to Lehigh Valley IronPigs baseball fans as "Gladiator-lovers" when the Fireworks Fiasco was playing out.

Now, unless I am mistaken, the esteemed Councilman would rather have me get on board with the passive sport of ice hockey at the plush Palace of Sport.

I find this most entertaining.

LVCI said...

Poor Allentown. People speak as though every dollar earned in Allentown leaves Allentown and flows to the suburbs. IT DOES NOT. I assume when the following taxes were initiated the intention was to defray the costs associated with businesses already. So let us not use this invalid argument that somehow Allentown isn't getting reimbursed by someone who doesn't live in the city for snow plowing, street repair, etc.


The rate of the tax on each dollar of the whole or gross volume of business transacted within the territorial limits of the City shall be as herein set forth, on retail business the rate shall be one and one-half mills (one and one-half mills means One Dollar and Fifty Cents [$1.50] per Thousand [$1,000.00] Dollars of gross volume of business),

The rate of the tax for wholesale: business transacted shall be one mill (one mill means One [$1.00] Dollar per Thousand [$l,000.00

The rate of tax for service and rental business transacted shall be three mills (three mills means Three [$3.00] Dollars per Thousand [$1,000.00] Dollars of gross volume of business

All self-employed individuals who perform services of any type or kind, engage in any occupation or profession within the City shall be required to.. pay the tax ($52)

.. individuals residing or having their place of business outside of the City, but who perform services of any type or kind, or engage in any occupation or profession within the City, do by virtue thereof agree to be bound by and subject themselves to the provisions, penalties and regulations promulgated under this article with the same force and effect as though they were residents of the City Further, any individual engaged in an occupation within the City and an employee of a nonresident employer may, for the purpose of this article, be considered a self-employed person.

.. subject to pay for and in respect to the transaction or any part thereof, a tax at the rate of one (1%) percent of the value of the real estate

Has the city excluded all of those tax dollar$ above for the new stuff in the NIZ, or will these also go towards the state loans?
Are all of these are going into Allentown's pocket? If so, these talking points about the money draining out of the city are invalid.

John.Jay said...

I actually think I take a very conservative view of things Mr. Molovinsky. I want them to go back to they were during your childhood. The NIZ actually reestablishes the same tax scheme as was in place before the 1965 Local Tax Enabling Act. I think my grandparent's generation had it right. I'm not sure why that makes me a progressive?

michael molovinsky said...

john, if i have mischaracterized you, my pardon. i can assure you that during my childhood there was no KOZ, NIZ or EIT. Although there was an area called Lehigh Valley, there was no motivation for regionalism. applying employee's EIT to allentown's arena project, because you believe a better allentown will benefit the whole valley, seems progressive to me. you have made that point now on several blogs and patch. you have even parceled it out to only $1.50 per capital.

Anonymous said...

Many of the big employers are not in the NIZ or were previously part of the KOZ so the impact on the townships will be minimal.

Not one of them has been able to articulate, or even estimate, how much money the will forgo.

I'm not sure what the problem is, the maps of the zone are on the city's website and they have the addresses of where all their citizens worked last year.

AuH20 said...

Perhaps Whitehall should charge a toll to cross from 7th St. to McArthur Road in order to defray snow plawing costs. After all, look at all those Allentonians who bleed Whitehall dry by 'using' their stores as places of work. Makes me laugh.
And for the first time since he's been County Executive I applaud Don Cunningham for standing up to Pawlawski for his power gram of Queen City Airport.
So much to say.....so few threads. Thanks MM for the forum!

michael molovinsky said...

AuH20, this blog will be visiting that queen city disagreement this week. never a fan of cunningham, that's the second time this week i agreed with him (the first concerns postponing reassessment)