City Tax Rates Shouldn't Pit Residents, Business

Loosemore

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By Stuart Loosemore Special To The Worcester Business Journal

I doubt the Fab Four from Liverpool had Worcester businesses in mind when they sang "If you drive a car, I'll tax the street, If you try to sit, I'll tax your seat. If you get too cold I'll tax the heat, If you take a walk, I'll tax your feet." But for many businesses, The Beatles, through the song "Taxman," could not have better expressed how they feel each year as they ply their trades within the city limits. For many businesses, property taxes are one of the largest costs of doing business.

This past May, the Worcester City Council heard the cries of more than 120 businesses at the annual tax classification hearing and voted to reduce the business tax rate, moving it in the direction of fairness and equity. The dual tax rate in Worcester has habitually pitted residents against businesses, when, as a community, we should all advocate for parity in our tax structure. Without a thriving business community, financing the city's needs would fall directly on residents. And contrary to popular myth, the business community does not want this to occur.

Businesses and residents rely on each other to create a stable economy. Businesses need the residents to purchase goods and services, and as employees to help run their businesses. Residents rely on businesses for their dry cleaning, haircuts, dining out, repairing their cars, and many more products and activities. But, over the years, under the dual tax rate, the balance has shifted precariously as many businesses have opted to move to single-tax-rate communities. Paradoxically, taxes have increased for both residents and businesses alike as the tax base has eroded.

We must all work together with city government to establish fair tax rates. Some who are opposed to a single tax rate believe businesses are fighting for their bottom lines with this argument. In fact, having more businesses results in more jobs, more residents and more homeowners. All of these constituents then pay property taxes, increasing the tax base and reducing the tax burden on everyone.

Some may argue that taxes should be lowered for everyone. While the Worcester Regional Chamber of Commerce favors this approach, the reality is that the city must raise enough money to cover its budget and to pay for the services we have come to expect.

The solution is to create a system that is fair for all. If we continue to pit businesses and residents against each other, to once again quote The Beatles, each side will forever feel the system is like another line from the song: "There's one for you, nineteen for me."

Stuart Loosemore is director of government affairs and public policy for the Worcester Regional Chamber of Commerce.

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