Task force recommends shifting tax burden to property owners

A tax-policy task force appointed by the mayor will release a report today recommending that the city lower wage and business taxes, and shift the tax burden to a revamped property-tax system.

If you're feeling a sense of deja vu, it's because much of this has been discussed before.

The group's general recommendations are similar to proposals in 2003 by the voter-created Tax Reform Commission, which was given a year and $500,000 to review the city's tax structure and recommend reforms.

Mayor Nutter appointed the 17-person task force in February, charging it with reviewing city taxes and issues such as development and regulation. The group had no budget or technical support, in contrast to the last group to seriously study the city's tax structure.

The report, which sets a goal of creating 70,000 more jobs in the city by 2025, lists a number of key recommendations on taxes and government, which include:

* That the city revive planned cuts to the business-privilege tax and cut the wage tax more aggressively.

* Create a program to promote Philly's tax rates to outside businesses.

* Increase the real-estate tax to offset other tax reductions.

* Create a taxpayer advocate.

* Reduce city spending by lowering the cost of pensions and health care for city workers.

It isn't clear how Nutter plans to use the data. Finance Director Rob Dubow said by e-mail that the administration looked forward to reviewing the research.

Some City Council members yesterday attended a briefing on the report and expressed concerns about the findings.

"What I don't want to do is, because we feel we're overtaxed, that we create a tax policy that generates a tax cut for those who don't need it," said Councilwoman Maria Quiñones-Sánchez, who said that she thought that suggestions to reduce the gross-receipts portion of the business tax were off base.

And Councilman Bill Green said that changing the tax structure wasn't the only reform needed in Philadelphia.

"The number one reason we lose our middle-income population," he said, "is because they move out of the city to send their children for a free quality education."

CORRECTION:

A headline in Friday's paper incorrectly reported that a task force recommended shifting the city tax burden to homeowners. In fact, the report recommends putting the burden on all property owners.