Business tax cuts in the pipeline?
City Council is again moving on measures that would trim Philadelphia's business taxes, especially the Business Privilege Tax. However, Mayor Street vetoed a similar measure last spring for budget reasons -- however, some hidden funds appeared after the budget was finalized, which may fuel his opposition this time around. Some of the proposals would lock in a tax cut, while others would only commit to a short-term decrease (note that the city budgets on a five-year plan). Also at issue is the unknown degree of linkage between tax cuts and actual job creation.
posted by ACM at 10:56 AM
1 Comments:
The link between tax cuts and job creation is hard to establish, but not the connection between tax cuts and improving Philadelphia's competitiveness in our region and beyond. Relatedly, the sybolic impact of the tax cuts is important; it sends the right message to those in the business community outside City limits who might be thinking of moving in, essentially saying that "your first year is your worst year" when it comes to taxes. Similarly, it sends a positive message to existing business - small ones in particular - that their burden is being lifted to some extent.
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