Top aides to Mayor Cherelle Parker defended the administration’s plan to eliminate a popular business tax break that is facing a legal challenge, saying the city would be unlikely to prevail in court if it defended the policy and could face significant financial consequences if it loses. The tax break excludes companies’ first $100,000 in revenue from being taxed under Philadelphia’s business income and receipts tax. It effectively allows companies that make less than that amount in a calendar year to pay no taxes at all, and it lowers tax bills for all firms. “The mayor made the hard but prudent decision to discontinue the [tax break], rather than placing the city into a devastating financial position,” city solicitor Renee Garcia said.
Source: Philadelphia Inquirer; 4/24/2025