May 12, 2005
Business Privilege Tax---Sample Letter to Council
I understand that as an elected public official you face important issues and are called upon to decide tough questions every day. I also appreciate the actions that City Council has already undertaken to stimulate our economy and help our city grow and I recognize the budgetary and economic problems which the city faces.
I write to you as [AN EMPLOYER OF ___ PHILADELPHIANS or A REPRESENTATIVE OF ___ BUSINESSES EMPLOYING ___ PHILADELPHIANS] to urge you to pass bill 040767 to eliminate the city's Business Privilege Tax.
I ask that you take this action precisely because I share your concern about the city's future economic strength and well-being. And this concern is also reflected in the reasoned and thorough study and recommendations produced by the city's Tax Reform Commission. A crucial part of the Commission's package of recommendations is the eventual elimination of the Business Privilege Tax. Today, this tax on business receipts and business income forces city businesses to pay the nation's highest local business tax. What's more, the city effectively imposes a double taxation by collecting both the Business Privilege Tax and the Net Profits Tax from service firms that are organized as partnerships. It is clear that without a change, jobs and neighbors will continue to leave Philadelphia.
Like you, I want to see our city grow and prosper.
The recommendations of the Tax Reform Commission represent a true plan for change and the first step on the road to sound economic growth and greater prosperity. I urge you to adopt the recommendation of the Tax Reform Commission, and take action to begin to phase out the Business Privilege Tax.
Thank you for your attentiveness and continuing service to our city and its citizens.