PHILIPSBURG – The Philipsburg Main Street Program today encouraged Moshannon Valley residents who are receiving the Making Work Pay provision from the Internal Revenue Service (IRS) to spend those few extra dollars per week at locally-owned, independent businesses. During 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act (ARRA) will be seen in the form of a refundable tax credit averaging up to $400 for individuals, and up to $800 for married taxpayers filing jointly, according to statistics released by the IRS. The Making Work Pay provision translates to an average increase of $13 per week in take-home pay, per household.
Randy Bordas, PRC board president and downtown merchant said, “Many people do not realize how positively and significantly spending $13 per week at businesses other than big-box, national chains will affect local economies across the commonwealth.”
The Philipsburg Main Street Program estimates that an average central business district has about 5,000 households in its trade area receiving the Making Work Pay tax credit. Therefore, if each household spends just $13 per week at locally-owned, independent businesses, this equates to $65,000 per week in additional sales for the local economy. Over a 52-week period, that dollar amount will grow to more than $3 million dollars.
According to the Main Street Program, the true impact of spending $13 per week locally would be seen in the multiplier effect of local businesses investing their increased revenues back into the community.
“There are many statistics out there regarding the ways communities benefit from buying locally,” said Bordas, “but one constant is that independent businesses are more likely to buy their own goods and services locally. So, if 60 percent is a middle of the road figure for revenue remaining in the community through secondary purchases, then the $3 million figure increases to $5 million over the same one-year period.”
At a truly local level, Philipsburg trade area is estimated at 15,000 households. Using the same figures, this would annually translate to $ 195,000 worth of sales for local businesses.
The Philipsburg Revitalization Corporation is a non-profit charitable organization as defined in section 501(c)(3) of the Internal Revenue Code. The PRC and the Moshannon Valley Economic Development Partnership jointly operate the Philipsburg Main Street Program which is funded through community support of businesses and individuals. The program receives technical support from the Pennsylvania Downtown Center. For more information call the Main Street Manager at 814-342-2260 or visit here.
