Street will veto bill
to cut business privilege tax

Mayor John Street plans to veto a bill passed by City Council that would reduce the business privilege tax by $38 million over five years.
The legislation, sponsored by Councilman Michael Nutter, passed by a vote of 9-7 on Dec. 22. However, supporters needed 12 votes to override a mayoral veto.
The measure was backed by Councilmen Nutter, Brian O’Neill, Jack Kelly, Frank DiCicco, Jim Kenney, Frank Rizzo, Wilson Goode Jr., Council President Anna Verna and Councilwoman Marian Tasco.
Opponents were Councilwomen Joan Krajewski, Blondell Reynolds Brown, Jannie Blackwell, Donna Miller and Councilmen Rick Mariano, Darrell Clarke and Juan Ramos.
This is the third time in two years that Council has passed a cut in the business privilege tax. Street has vetoed the bill the previous two times.
The business privilege tax requires Philadelphia employers to pay a levy on both their net profits and gross receipts. The Greater Philadelphia Chamber of Commerce cites the tax as a major reason that Philadelphia has lost 250,000 jobs since 1970.
Mark Schweiker, president of the business group, said the $38 million tax cut is relatively small, considering the city has a $3.4 billion annual budget.
The chamber produced two television commercials in the weeks leading up to the vote. They featured local business people, including Timothy Durney, owner of Timmy D’s deli at 1108 Cottman Ave. in Burholme.
The business owners contended in the commercials that a cut in the tax would allow them to hire more employees.
However, Street will veto the bill because he opposes tax cuts in the middle of a fiscal year. He wants Council to wait until he presents his next budget and five-year plan.
In addition, the mayor said the city might need the money to help residents pay their heating costs this winter. He added that the city might also need revenue to assist the poor and elderly with paying increased property taxes.
Before spending money on tax cuts, the city should look to fund road resurfacing, technology investments and arts and culture, in Street’s opinion. ••