City Council Bill 100635, legislation that would restructure the Business Privilege Tax (BPT), has been recessed until December 15, following two days of hearings at which the Greater Philadelphia Chamber of Commerce offered testimony.
While the GPCC applauds Councilwoman Maria-Quinones Sanchez and Councilman Bill Green for recognizing the onerous tax burden on businesses in the City of Philadelphia, we oppose this bill moving forward in its present form at this time.
We believe that there is considerable disagreement on some elemental fiscal “facts” surrounding this matter as it relates to revenue-neutrality and employment numbers. We explain in our position that the proposed “tax shift” not only creates inherent “winners and losers” across various economic sectors, but also disadvantages within an economic sector as well.
Read the GPCC’s testimony here.
This proposal comes at a time when businesses cannot afford additional tax uncertainty. Rather than expedite a major change in tax policy at this time, the Greater Philadelphia Chamber of Commerce supports the recommendations of the two most recent comprehensive tax studies—The Philadelphia Tax Reform Commission of 2003, and the Mayor’s Task Force on Tax Policy & Economic Competitiveness in Philadelphia of 2009. The 2003 Tax Reform Commission recommended phasing out the BPT entirely over 10 years.
The GPCC is opposed to moving this legislation forward until there is more clarity on the facts. We believe that a change of this magnitude needs to be discussed and understood with agreement by both Council and the Administration with input from all concerned parties.
We would prefer to see the re-starting of the gradual reductions in both the business privilege tax and the wage tax next year, concurrent with the 2009 Tax Task Force recommendations, as a means of jump starting the economy and creating new jobs, particularly in our neighborhoods.
