Burt is the third largest source of tax revenue for a city collected. According to the City Manager’s quarterly tax report, Burt will have a tax of about $ 617 million for fiscal year 2025.
In comparison, the property generates $ 930 million, while real estate transfer tax generates $ 315 million, and the net profit tax is on the route to generate about $ 44 million in fiscal year 2025.
Parker’s budget will cancel the construction impact tax, but the real estate transfer tax will increase from 3.278 % to 3.578 % in the fiscal year 2026.
City Wage is the largest source of tax tax revenue and is on the way to generating $ 1.9 billion in FY 2025.
The city’s wage tax for Philadelphia residents is 3.75 %, which will be 3.70 % in the financial year 2025. By 2030, it will be 3.39 %.
Parker said he had already received complaints that business tax deduction is not so deep, but with financial responsibility, there is a need to balance the business tax.
“That’s what we can do and I will not be transferred,” Parker said during a speech to the City Council on Thursday.
The Philadelphia City Council is expected to vote on its budget in June.
Pennsylvania, New Jersey and Delaware’s African American Chamber of Commerce CEO Regina Hairston said the proposed business tax cuts are a good start.
“We have been encouraged that it is there and we are hoping that it can be pushed forward,” said Hairston.
Although relief on gross receipt tax is helpful, businesses pay the most part of their tax bill on net income.
“The share of net income of Brit tax is a barrier to small businesses, especially for small businesses because it is made up of you. So you can’t really predict what it will be, so you can’t plan,” said Hairston. “Stability and predictions are the one that must be able to develop for very small businesses.”
But not everyone is convinced that tax deduction is the right way to advance, especially when there is so much uncertainty about federal financing.
“I will only support tax deductions at the moment if there was a circuit breaking, saying that if we had any recession, we had to stop,” said Jeff Horn Stein, executive director of Philadelphia’s Economy League. “We can definitely be more competitive, but to me, our major problems are about the development of manpower, the development of a smaller business than business tax.”
