The Chamber supports Mayor Kenney’s commitment to restarting wage and business tax reductions to spur economic growth and job creation, as well as the promise in his proposed budget to expand access to quality pre-k education for Philadelphia children and to fund other education and community development activities.

These issues – supporting tax reform, economy building, and public education – are inextricably linked, and that is why they have always been public policy priorities for the Chamber of Commerce and its members. Tax reform spurs growth by inducing companies to remain here and businesses from elsewhere to locate in Philadelphia and create jobs. The Chamber commends the Kenney Administration for proposing the resumption of the successful strategy of incremental reductions in wage and business taxes — first begun during the mayoralties of Ed Rendell and John Street, and continued by Mayor Nutter until the 2009 recession. The strategy resumed in limited fashion in recent budgets.

The Chamber strongly encourages the resumption of this well-tested tax reform strategy by the Kenney Administration and City Council. The mayor and Council have available tools at their disposal to further reduce wage and business taxes, and the Chamber supports the proposed reduction of the Business Income and Receipts net income tax from its current rate of 6.39 percent to 6.15 percent over the course of the Five-Year Financial and Strategic Plan. The administration plans to reduce the resident wage tax to 3.72 percent by FY21 – its lowest rate in more than 40 years. The Chamber strongly supports these pro-growth reforms, and encourages steps that would allow for these tax reductions to be increased in the next few years to support growth and job creation.