Victory (again)! Councilmembers Blackwell, Clarke, Mariano, Miller, Ramos & Reynolds Brown vote NO

The overwhelming majority on City Council agreed with the public, the Mayor's transition team, and the Tax Reform Commission and voted today to (over time) dramatically reduce the Wage Tax and eliminiate the Business Privilege Tax.  This is a tremendously important development -- the second time in a month that City Council approved significant tax reform legislation.  While the votes to reduce the Wage Tax and eliminate the Business Privilege Tax both fell one vote shy of a veto-proof majority (Councilmembers Blackwell, Clarke, Mariano, Miller, Ramos and Reynolds Brown still refuse to vote for tax reform) the city budget and Five-Year Financial Plan were approved by veto-proof margins. 

Now that City Council has (again) passed significant tax reform legislation, it is up to the Mayor to determine whether he will sign the legislation, allow it to become law without his signature, or veto the legislation.  Remember, if he vetos the legislation, he will actually create a huge hole in his budget and Five-Year Financial Plan due to the fact that he would give up new Parking Tax revenues and have to accept cuts to the Wage Tax in July instead of on the more rational schedule just adopted by City Council.  If this battle is truly about fiscal responsibility, the Mayor should get behind tax reform.  If this battle is about power and ego, the Mayor could set in motion a process to force the budget to endure immediate deep cuts or even leave the city without the ability to spend after July 1st just to score a political victory.  Today's Philadelphia Inquirer  editorial said it best: "It's time for the mayor to perform the same agile move he did in 2002, when he opposed a plan to revive cuts in the wage tax until it was clear he couldn't stop it. Then he got in front of the parade, and bragged about his tax-cutting during his reelection campaign last year." (Full editorial)