With An Eye On Job Growth, City Council Weighs 2 Bills To Cut Corporate Taxes
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PHILADELPHIA (CBS) – On the agenda in Philadelphia City Council this fall: at least two new plans to ease the tax burden for businesses in the city.
One of the plans, from Councilman at large Jim Kenney, is similar to the controversial property tax abatement that gives a ten year break on property taxes for new construction. Here, Kenney proposes giving a two-year break on the business privilege tax to any new businesses in the city that employ more than ten workers.
Kenney says, “I don’t think this is an issue that costs the city any money, because — as with the real estate tax abatement — the house wouldn’t have been built in the first place, the business wouldn’t have been started, and jobs would not have been created.”
And to qualify, those holding the new jobs would have to be city residents. Meanwhile Councilman Bill Green is pushing a plan to offer all businesses, an exemption on the first $100,000 earned.
“So we’re lowering the business tax burden, and we’re shifting the tax burden away from small businesses, which are the places that create jobs as economies come back,” Green says.
Green says the overall drop in revenue would be $50 million dollars, money that he says would be recouped by slowing a planned reduction in the net income portion of the business tax. Both plans will be debated in committee. The mayor’s Finance Director, Rob DuBow, says the Nutter Administration will review the ideas.
Reported by City Hall Bureau Chief Mike Dunn, KYW Newsradio 1060