The City Council's Minority Wing, led by Minority Leader Kendra Brooks and Minority Whip Nicolas O'Rourke, has introduced the "People’s Tax Plan" aimed at providing tax relief for low-income residents and small businesses in Philadelphia. According to the City Council Philadelphia release, the proposal seeks to expand the Wage Tax Refund, raise the Business Income and Receipts Tax (BIRT) exemption, and revise last year's wealth tax.
Councilmember Brooks stated the plan aims to support working families and small businesses, ensuring that billionaires and corporations pay their fair share in taxes. The proposed expansion of the Wage Tax Refund would increase eligibility and potentially raise the average refund from $170 to over $275. Small businesses could benefit from a proposed increase in the BIRT exemption to $200,000. The revised wealth tax would apply a 0.4% tax on select assets, excluding small businesses and certain savings accounts, and is expected to generate $200 million in annual revenue.
Dr. Nikia Owens, President and CEO of the Campaign for Working Families, expressed support for the plan, highlighting the financial strain on low-income earners, particularly with rising rent and grocery costs. Jonathan Stein, a member of the 2002 Tax Reform Commission, also advocated for tax reform that supports the working poor. Local small business owner Nija Wiggins emphasized the importance of tax exemptions for small businesses, stating, "Small businesses are the backbone of Philly—we keep the neighborhoods alive, create jobs, and put money back into the community," in the same release.
The People’s Tax Plan was set for introduction in City Council yesterday.
