Inclusive Growth Coalition

If Philadelphia is going to compete with the growth of other large cities in the region, we need to make business-friendly adjustments to our tax structure.

The Philadelphia Tax Reform Commission noted that the city’s job growth rate has only increased 7.8% since 2001 –– putting us behind nearby cities like New York City, Boston, and D.C. The Commission calls this “a deeply troubling trend.”

With strategic tax reforms –– specifically to the BIRT and Wage Taxes –– Philadelphia can signal its support for businesses of all sizes and demonstrate we are willing to compete with the rest of the region to bring them here and keep them here. Pursuing a more competitive tax structure that attracts businesses into Philadelphia will allow our job market to grow and our city to prosper.

PHLCouncil
Councilman Kenyatta Johnson
Councilmember Kendra Brooks
Councilmember Katherine Gilmore Richardson

Jennifer Rodriguez, CEO of the Greater Philadelphia Hispanic Chamber of Commerce, recently authored an insightful op-ed on Philadelphia’s tax system. She highlighted an imminent threat to small businesses: due to a court challenge, the mayor proposes elimination of an exemption allowing businesses with less than $100,000 in revenue to avoid paying the Business Income and Receipts Tax.

Rodriguez says if the exemption is repealed, more than 120,000 local businesses struggling under our current system could face another burden. She warns, “If we do not take bold action now, we risk forcing even more entrepreneurs to downsize, relocate, or shut their doors entirely.”

Rodríguez rightly calls for urgent reform. To protect small businesses and stimulate economic growth, we must eliminate the burden caused by the BIRT and reduce the wage tax. These changes will bring in more opportunities and help build a more vibrant economy in Philadelphia. The time is now—let’s help Philadelphia’s businesses thrive!

Read Jennifer’s op-ed for The Philadelphia Inquirer here:

Philadelphia’s business tax problem is a jobs problem | Opinion The potential elimination of the BIRT exemption places new pressures on small businesses, making immediate tax reform not just a goal but an urgent necessity.