COUNCIL VOTES TO PHASE OUT THE JOB-KILLING BUSINESS PRIVILEGE TAX

City Council voted to approve bill 040767, which will phase out the job-killing Business Privilege Tax to grow jobs in Philadelphia.  This is a crucial piece of legislation to implement the Tax Reform Commission's overall plan to make city taxes more fair and less burdensome to attract and retain jobs and neighbors. 

The legislation calls for the following schedule of continued reductions to the Gross Receipts Tax (which must be paid even if a business does not make a profit) and -- for the FIRST TIME EVER -- reductions to the Net Income Tax (which is a punishing levy -- nonexistent in the suburbs -- on profits if a business does make money).

Tax Year

Gross Receipts Rate

Net Income Rate

2005

.19%

6.5%

2006

.175%

6.48%

2007

.1625%

6.46%

2008

.15%

6.44%

2009

.13%

6.42%

2010

.1137%

6.40%

City Council Must Vote To Continue The Following Reductions

2011

.0974%

5.50%

2012

.0811%

4.60%

2013

.0648%

3.70%

2014

.0485%

2.80%

2015

.0322%

1.90%

2016

.0159%

1.00%

2017 and thereafter

0%

0%

A major Philadelphia Inquirer editorial urged Council to approve this legislation and had this to say about what is next:  "So the question on taxpaying minds has to be whether Mayor Street will continue his Dr. No routine on tax cuts, with more dire warnings about budget contingencies only he is wise enough to foresee.  The second question - given his recent magic with those library and fire cuts - is whether anybody will believe him if he claims the city can't find a way to forgo up to $21 million in revenue over five years.  That's one-tenth of 1 percent of the city's five-year, $18.3 billion budget plan. Your mama could save that percentage of scratch in the laundry budget...Skip the veto and go straight to the magic, Mr. Mayor." (Full Editorial)

You can call Mayor Street directly -- 215.686.2181 -- and tell him to sign bill 040767 to help grow jobs in Philadelphia.

Please also take time to Email City Council members today to thank them for their action and their vote to grow jobs in Philadelphia.

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