Tax Reform Update -- Council Offers Compromise; Tax Reform Back in Play

Tax reform is dead.  Long live tax reform.  City Council approved a budget/tax reform compromise just hours after Council failed to override the Mayor's veto of the Council-approved budget as well as significant tax reform legislation to dramatically reduce the Wage Tax, eliminate the Business Privilege Tax, and reform business taxes to equalize treatments of corporations and partnerships. 

The budget/tax reform compromise reduces the short-term impact of tax reform on the city's Five-Year Plan by eliminating the measure to equalize treatments of corporations and partnerships, by eliminating the Business Privliege Tax by 2017 (instead of 2015) and by reducing the Wage Tax to 3.25% by 2015 (instead of 2014).  Make no mistake, there is still more to do beyond this compromise, but these measures represent significant progress toward tax reform and we owe a debt of gratitude to the Council members who have supported tax reform and who have worked so hard to earn the support of their colleagues in this effort.  There are now 11 members of City Council voting for tax reform, which is one vote away from the 12 we would need to make tax reform veto-proof (assuming the Mayor does not approve this compromise).  So now, we are ONE VOTE AWAY FROM SIGNIFICANT TAX REFORM!