VICTORY FOR TAX REFORM; Veto Threatened

With an inspiring number of tax reform advocates packing City Council chambers and cheering lustily, Philadelphia shook some of the dirt of its coffin and took a lurch forward.  THIS CITY IS NOT DEAD YET!  On Monday, May 31st, City Council voted to implement the major recommendations of the Tax Reform Commission.  City Council voted to dramatically reduce the Wage Tax, eliminate the Business Privilege Tax, and eliminate the disparity between the tax burdens of corporations and partnerships.  (Each measure would be phased in over the next decade.)  Two other tax reform bills (one to eliminate loopholes in the Realty Transfer Tax and one to unify the periods of time the City can seek back taxes/taxpayers can seek refunds) also passed.  Other bills to implement complementary recommendations of the Tax Reform Commission had previously been held in committee.  A bill to implement Land-Value Taxation failed its vote to be reported out of committee.  (Click here for more information about the legislation.)  A Daily News editorial calls on the Mayor to sign the tax reform legislation and lays out the challenge before the city quite clearly, "Like Nero, Philadelphia has fiddled with its tax policies while the city dwindled.  If Street carries out his threat to veto the tax reform package, Council must override his veto. The city can no longer afford to wait."  (Full editorial)
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