By Mike Dunn
PHILADELPHIA (CBS)–A city councilman says Mayor Nutter needs to ramp up in a big way, by making cuts to the much-hated Philadelphia wage tax.
Councilman-at-large David Oh, one of three Republicans on City Council, has introduced a bill that would cut the wage tax, as well as the net income tax on individuals, by nearly half by the year 2025.
“It tells employers that they can stay and expand in Philadelphia, and invites new employers to come to our city. We do need to let businesses plan ahead, and we want to tell investors and businesses to come to our city.”
Oh believes the city could easily recoup the lost revenue by tapping into what he believes is a cushion of revenue that is not designated for use in the budget. Under his plan, the wage tax rate for residents would drop from 3.92 percent in 2014 to 2.09 percent in 2025.
Mayor Nutter had put wage tax reductions on hold in 2009 because of the recession, but he resumed them in his current budget. His current schedule of cuts is less dramatic than Oh’s plan, with the rate dropping to about 3.75 percent by 2018.
Oh’s plan will be folded in to the larger budget debate that will ensue after Nutter unveils his next budget in March.