Another justification that is claimed for Borough revitalization investment is the creation of new jobs and the resultant additional employee taxes.
With the unemployment rate for Chester County at 3.5% (Source: BLS Labor Force Data By Counties, 2006 Annual Average), is job creation an issue that really needs to be stressed?
As to tax creation: a single new $40,000 job generates $252 in Borough wage-related taxes, assuming that the employee lives in the Borough and wasn’t employed elsewhere before. And what do the new 'arts and entertainment' jobs really pay? More or less than the first-quarter 2006 average weekly wage of $1,083 in Chester County (Source; BLS Philadelphia News Release November 14, 2006).
A $1 million CD would earn about $40,000 a year.
To produce the same $40,000 in revenue, the $1 million Borough investment would have to generate 159 newly tax-generating jobs.
Again, this assumes that the government incurs no additional costs because of the employee influx. Now, if you have to create parking for 159 people, perhaps the picture changes.
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