Friday, July 31, 2015

Quinones-Sanchez and Green propose overhauling tax system

According to a story by Catherine Lucey and Dave Davies in today's Daily News, two freshman members of City Council are on the verge of unveiling a proposal that would dramatically change how businesses are taxed.

Quinones-Sanchez and Green propose overhauling tax system

0 comments

According to a story by Catherine Lucey and Dave Davies in today's Daily News, two freshman members of City Council are on the verge of unveiling a proposal that would dramatically change how businesses are taxed.

Tax reform is nothing new. But the proposal from Bill Green and Maria Quinones-Sanchez would completely eliminate a portion of the Business Privilege Tax and increase another portion of the levy.

The city's business-privilege tax has two components - a gross-receipts portion, which taxes firms on their sales, and a net-income portion, which taxes profits.

Since 1995, Council and the mayor have been making small reductions in the gross-receipts tax.

But Quinones-Sanchez and Green are considering a dramatic reversal of course: immediately eliminating the tax on profits and increasing the gross-receipts tax enough so that the city's tax revenues aren't reduced.

Mayor Michael Nutter-- who just received recommendations from his own tax force-- seems cool to the idea. He even told the Daily News that the proposal sounded a little crazy.

Nutter said that he wants to look at their legislation but that he's always believed that the gross-receipts tax made no sense.

"It seems to me to be on the borderline of insanity where a business, if you make no money, owes the city money," Nutter said.

The mayor may not support the idea, but Green and Sanchez have already begun building support among other members of City Council. If they can get 12 votes for the bill, Council can override a veto from Nutter.

Review city services on our sister site, City Howl.

0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog
Every year, city government spends slightly more than $4 billion. Where does all that money come from? More importantly, where does it go? Are we getting the most bang for our tax buck? “It's Our Money” is a joint project between Philadelphia Daily News and WHYY, funded by the William Penn Foundation, designed to answer these questions.

It's Our Money contributors

Tips? Comments? Questions?
Contact:

Holly Otterbein:
215-854-5809
hm.otterbein@gmail.com
@hollyotterbein

It's Our Money
Also on Philly.com
letter icon Newsletter