City of Scranton Letter

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October 16, 2012

The Honorable Chris Doherty Mayor, City of Scranton 340 N. Washington Avenue Scranton, PA 18503 Dear Mayor Doherty and Council President Evans:

The Honorable Janet Evans President of Council, City of Scranton 340 N. Washington Avenue Scranton, PA 18503

The Greater Scranton Chamber of Commerce surveyed its members to determine each business’s views on the commuter tax proposal enacted on October 11, 2012. 473 of the 713 businesses that responded to the survey are located in the city of Scranton. 84% of all the businesses responding oppose the commuter tax. Scranton business members of the Chamber believe the imposition of the commuter tax will make it more difficult to recruit employees and more expensive to keep them. This impediment would add to the other hurdles to doing business which are unique to operating in Scranton – business privilege, mercantile and parking taxes primary among them. These hurdles will hurt Scranton businesses which must compete with businesses in the surrounding communities. The inability to compete from a Scranton location will impede recruitment of new employers to Scranton, impede expansion of existing Scranton operations and may actually drive businesses and their employees out of the city. This, in turn, will adversely affect Scranton’s commercial core, the Scranton retailers, restaurants and service firms for which our commuters are daily customers. The ultimate effect will be the reduction of the City’s tax base and future revenue streams. For these reasons, the Board of Directors of the Greater Scranton Chamber of Commerce urges you not to impose an additional Earned Income Tax on commuters. The Greater Scranton Chamber of Commerce is gravely concerned about the financial health of the City of Scranton. We recognize the constraints on revenue and operations that Pennsylvania laws and mandates impose, exacerbating your fiscal crisis. We have joined a coalition of chambers in communities across the Commonwealth to advocate the reforms necessary to enable effective municipal governance. We will work with you and our Pennsylvania legislators to enact the necessary remedies and reforms as soon as possible. Sincerely,

Austin J. Burke President Greater Scranton Chamber of Commerce
222 Mulberry Street / P.O. Box 431 / Scranton, Pennsylvania 18501-0431 / (570) 342-7711 / FAX: (570) 347-6262 www.scrantonchamber.com

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