When I bring people to Pittsburgh form out of town, there's always a common question: "Why aren't there more people in the city?" I usually offer the same explanation—the only conclusion that I can come to—Pittsburgh does not like people. People are apparently a necessary evil. Pittsburgh is like that expensive furniture at your grandmother's house that she keeps covered with that sticky plastic. It looks really nice these days, but you always end up leaving feeling uncomfortable and wonder who it's being saved for. Pittsburgh seemingly tolerates us enough long enough to gouge us during sporting events, but afterwards people can't get out of the city fast enough. And, that is true largely because of the financial and logistical constraints that our leadership have put in place.
I mean really, look at the welcome mat that Pittsburgh rolls out for us:- EXTRA 1% SALES TAX: Why shop in the city—especially for major purchases—when you can buy the same item for 1% less just beyond the Allegheny County line? If the 1% County sales tax isn't enough to send you elsewhere, there's more…
- TRANSPORTATION: Just try getting to the city from the airport corridor. "You mean your only options are taxi or pay to park," I'm asked. From here, that's it. You could try to find a bus route, but the city is already cutting those back as well.
- PARKING TAX: I can only imagine that the city limits the modes of transportation into the city to feed its 45% parking tax. After all, the city was generous enough to roll that back from 50%. So, they have to make it up somehow.
- BUSINESS TAX: "But, shouldn't people work here," my friend wonders. Well, Pittsburgh, the "most livable city," I laugh once ranked 2nd with the most brutal business tax. I think we've slipped to 4th or 5th thanks to some other greedy cities. Why would anybody pay to put a business in a place that nobody can affordably get to, spend time in, or even work in...
- WAGE TAX: "Yeah, but it's the city, why don't more people live there," I'm asked. Well, you see, the normal wage tax isn't enough for the city. Residents of Allegheny County are charged extra. I'm not sure of the amount, but I think it's two-to-three times what we pay outside Allegheny County. (3% to be exact)
- OCCUPATION TAX: Oh yeah, don't forget the $100 off the top—occupational tax that the city charges people just for the privilege of working in the city. I mean really, what's another $100 to have the word Pittsburgh on your mailing address?
- EVENTS: "So, what's going on here in the city?" Well, we could go out to Burgettstown and catch a few shows. You mean there's no concerts here? Nah, they taxed the crap out of acts, now they just bypass the city. I go to Cleveland or Baltimore for most shows I want to see. You can catch a travelling production or eat, but the only reason younger people come to the city is the bar scene on the South Side. I wonder what they could do to mess that up…..BEER TAX!
- BEER TAX: So, let's put this in perspective. Pittsburgh has made it difficult to get downtown, charge you for parking once you get down there, charge you an extra 1% for anything you'd want to buy, and now they want to tax beer??? So, now on top of paying $6 for the privilege of drinking a beer in the city, they're thinking about adding a 10% tax to the beer.
A PARTING THOUGHT ON MY WAY TO THE SUBURBS: It's funny, I hear the grave concern in voices of our leadership. "We have a dying population." "We need to attract young people." Well, I'm one of those young professionals that you spend so much time talking about. I love the city, I love being in the city—especially when I'm in other cities. In other cities, I like not having to drive. I like being where the people are. I like being around business. I like the atmosphere of a busy happy hour of young professionals in a city where people aren't trying to get out of the city ASAP because traffic and the prices stink. But, that's not an option here in Pittsburgh. It's a mess and you're making it worse. The bar scene might well be one of the last veins of bringing young life into the city, and, effectively, you are saying, go play in the suburbs. It's less expensive and the parking is free. So, when I'm in Beaver or Washington County for happy hour, I'll raise a glass to you and your 10% tax.
Cheers!
WOODY
COUNTY EXECUTIVE, DAN ONORATO'S RESPONSE (VIA PROXY)<br/><br/>July 12, 2007<br/><br/>Dear Jim:<br/><br/>Thank you for contacting our office. Chief Executive Onorato read your e-mail and asked that I respond on his behalf.<br/><br/>State lawmakers are considering giving Allegheny County the option of implementing a rental car fee and/or tax on poured alcoholic drinks to fund mass transit. However, if approved by the General Assembly, neither the fee nor tax could take effect without a full public process here in Allegheny County, including approval by County Council and the Chief Executive. Mr. Onorato has also indicated that any additional funding for mass transit would be contingent on further cost reductions and restructuring at Port Authority.<br/><br/>Currently, Allegheny County’s only source of tax revenue is the property tax. Each year, $25 million in County property taxes go toward funding the Port Authority. Chief Executive Onorato believes property taxes are too high, and he is opposed to raising property taxes to provide additional funding for Port Authority. In fact, he would like to end the Authority’s reliance on property taxes altogether. <br/><br/>Philadelphia has a number of revenue streams, such as a car rental fee and drink tax, that it uses to fund its operations, including mass transit. Mr. Onorato has worked with legislators to identify optional dedicated revenue sources for mass transit here in Allegheny County that would relieve property owners of the $25-million annual payment to Port Authority.<br/><br/>Mr. Onorato has also been working hard to address two decades of poor management and outlandish costs at the Port Authority. In March, he announced a number of changes to reduce management costs, including the elimination of 56 positions, institution of salary freezes, and termination of excessive benefits. In June, Port Authority reduced its bus and light rail service by 15 percent and its workforce by an additional 203 people. The Chief Executive is continuing to work with Port Authority management and labor to further reduce costs.<br/><br/>Mr. Onorato’s entire career has been based on reducing property taxes and protecting Allegheny County property owners. Upon taking office, he immediately began reducing expenditures and streamlining County government. He eliminated a $31-million structural deficit by cutting 500 positions from the County payroll, and he was the primary advocate of Row Office reform, which will reduce the size and cost of County government. <br/><br/>In his first year as Chief Executive, Mr. Onorato cut taxes, and he has held the line on property taxes in every budget since. Mr. Onorato also fought for the 2002 base-year assessment system, which prevents dramatic swings in property values and taxes by ending annual reassessments. The base year system also puts a stop to back door tax increases by school districts and municipalities. <br/><br/>Thank you for contacting our office. We appreciate your input.<br/><br/>Sincerely,<br/><br/>Megan Dardanell<br/>Office of the Chief Executive
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