Mayor Michelle Wu’s bid to pass an increase on the city’s commercial taxpayers is devoid of reason. As the Herald reported, the plan passed by the House and up for consideration in the Senate would raise the commercial property tax level to 181.5% during fiscal 2025, 180% in fiscal 2026, and then 178% in fiscal 2027, before reverting back to the 175% limit. Wu has said she is targeting the commercial properties to save homeowners.

I was there at the joint committee hearing at the State House  and testified against the tax bill.

“We all have to think about tightening our belts,” said State Sen. Susan Moran. The concept of belt-tightening is lost on Wu, who’s proposed an 8% increase in the FY 2025 Boston budget.

Inflation has hit every household, and we have all trimmed our budgets, it’s time for Mayor Wu to do the same. Lockdowns forced businesses to evaluate the cost of doing business in cities, and the Hub is in fiscal crisis, but Mayor Wu cannot tax her way out of the problem. Her tax increase will only make it worse.

The National Federation of Independent Businesses recently reported that for the 28th consecutive month small businesses have reported a decline in sales. This streak has only been seen during two major recessions.  From Maverick Square to Mattapan it will be the customers of small businesses, hotels, cafes, restaurants, and retail that will bear the brunt of these tax increases. Boston landlords pass on the growing cost of doing business here to consumers through the ubiquitous triple net lease.

Mayor Wu championed the so-called “millionaire’s tax,” and that economic anvil has hobbled efforts to attract business. The Wu property tax measure will also run counter to the city’s efforts to attract new companies and relocate established corporations to our town.

The cost of maintaining property increases as a percentage of its fair market value. This tax increase will accelerate the declining Boston commercial real estate market. Owners of real property and potential investors will invest in other cities, or other investment assets, shooting us past mile markers on a “doom loop.”

In my testimony to lawmakers at the State House, I remarked that Mayor Wu is making Rumpelstiltskin promises, in that with this small tax increase she will spin Boston’s fiscal crisis into a new golden age for the city.

This tax fight is a fight over cutting the city budget and setting priorities.  In the post-lockdown era, Boston needs to be a lean, low-tax urban machine that can attract business. Choosing the Wu tax increase is a losing proposition for the city and the region. Mayor Wu is killing the goose that lays golden eggs.

Lou Murray is a homeowner and citizen of Boston.  He served two terms as President of the Roslindale Board of Trade.  He is a frequent contributor to the Boston Herald. He tweets on the X platform @LouisLMurrayJr1.