PHILADELPHIA (KYW Newsradio) — Philadelphia Mayor Cherelle Parker's proposal to cut business taxes received criticism, Tuesday, from anti-poverty activists.
Parker's plan incorporates ideas from the Tax Reform Commission, which argued that cutting the Business Income and Receipts Tax (BIRT) would boost job growth.
Some critics, including members of the Tax Reform Commission's advisory committee, opposed the commission's recommendations to cut business taxes. Committee counsel Stan Shapiro was particularly critical of Parker's proposal, which would eliminate part of the tax and cut the other portion in half while also removing an exemption that allowed small businesses to avoid the tax.
"That is reverse Robin Hood with a tax cut for big business being funded by a massive increase in a tax on small businesses," Shapiro said.
The critique was supported with data from Marc Stier of the Pennsylvania Policy Center, who argued, first, that Philadelphia's job growth is healthy.
"Jobs have been growing faster in Philadelphia than in our suburbs. The whole notion that the BIRT is driving people away from the city is untrue. It doesn't make sense. It's not how this tax works," he said.
He added that factors such as a skilled workforce drive job growth, suggesting the city would be better off investing in schools and job training rather than cutting taxes or tying tax cuts to job creation.
Jon Stein of Community Legal Services said tax reform should focus on the wage tax, not small business tax cuts. He advocated for a full exemption for low-income workers.
"So they don't become even poorer while working full-time," he said.
The group hopes to convince City Council to make changes during the budget process.
The mayor's office did not respond to a request for comment.
