Philadelphia City Council Poised To Offer Tax Break To Businesses That Add Jobs
PHILADELPHIA (CBS) - Philadelphia City Council this coming week is likely to extend a program that gives companies a break on their business taxes, if they bring new jobs in the city.
With unemployment in Philadelphia topping ten percent, council is poised to extend by two years a job creation program begun in 2002. Companies will get a $3,000 credit on their business taxes for each new job created.
The sponsor, Councilman Wilson Goode Junior, says the effort has already brought nearly 3,000 new jobs into the city since it began. He says the city gives up some tax revenue but comes out ahead:
"We believe we absolutely make it up through wage tax and spending. We think it's a good investment. We're investing no more than one percent of the previous year's business privilege tax revenue in new job creation. So we think investing that is absolutely a good investment."
The measure would extend the program through 2013. A final vote in Council is expected Thursday.
Reported By Mike Dunn, KYW Newsradio.
