City Council just took their first step towards considering a wage tax hike to help close the city budget gap.
Council just approved a resolution asking the finance director to verify whether city tax collections have dropped by more than 2 percent. Under state gaming law, that condition would allow the city to raise the wage tax.
During the initial vote, Council President Anna Verna seemed to miss that Council members Jim Kenney and Frank DiCicco voted against the measure. She called the vote again and they both emphatically voted no again. All other members supported the resolution.
Mayor Nutter has vocally opposed raising the wage tax to manage the budget shortfall. His propsed budget includes temporary increases to the property and sales taxes.
Because the Philadelphia's cut of the state gaming revenues is set aside for wage-tax relief, the city may raise wage taxes only under certain conditions.
At least 10 of the 17 Council members must approve and the Pennsylvania Intergovernmental Cooperation Authority must confirm the city budget numbers. Also, one of several financial conditions must be met, such as drop of total tax collections by more than 2 percent.