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Description
From the hearing of the Committee on Finance held Wednesday, November 13, 2019:
Councilmember Allan Domb (At large) makes remarks before the hearing on his bill, No. 190746:
Amending Section 19-1508 of The Philadelphia Code, entitled "Refunds and Forgiveness for Poverty Income," to revise the tax rate, under certain terms and conditions.
Read the bill: https://phila.legistar.com/LegislationDetail.aspx?ID=4147915&GUID=EDB797D1-4050-4FCF-95A2-65EB2923FEB7&Options=ID|Text|&Search=190746
A
Thank
you
damn
sure,
and
thanks
for
your
testimony,
Ralph
as
elected
officials,
we
are
charged
with
providing
essential
services
and
creating
policies
that
improve
and
benefit
the
quality
of
life
for
all
Philadelphians.
In
many
cases
where
we
have
made
gains
as
a
result
of
our
legislative
actions,
whether
it's
tackling
the
opioid
crisis,
providing
affordable
housing
or
improving
education,
we
are
faced
with
a
barrier
that
we
have
yet
to
truly
overcome,
and
that
barrier
is
poverty.
A
It's
been
cleaned
our
city
for
decades
and
it
can
no
longer
be
acceptable
for
a
quarter
of
our
population
to
live
in
poverty.
Furthermore,
elected
officials,
we
can
no
longer
tolerate
being
the
largest
poorest
city
in
the
country.
Many
of
us
have
made
great
strides
at
providing
programs
that
offer
opportunities
for
individuals
and
families
to
improve
their
financial
health.
Many
of
these
opportunities
have
created
pathways
to
sustainable
good-paying
jobs,
but
we
are
here
today
to
discuss
an
opportunity
that
would
provide
assistance
to
those
living
in
poverty.
A
The
legislation
I
introduced
bill
number
1,
907
46,
would
provide
a
wage
tax
refund
to
almost
60,000
low-income
Philadelphia
households.
It
would
have
men
the
city's
current
reimbursement
at
the
mouth
of
a
half
a
percent.
We
currently
have
a
program
where
we
reimburse
a
half
a
percent.
This
just
increases
that
program
to
two
point:
three,
six
percent,
which
is
the
city's
portion
of
the
wage
tax.
A
The
impact
this
would
allow
a
family
of
four
earning
an
income
of
thirty
four
thousand
two
hundred
fifty
dollars
to
receive
about
eight
hundred
and
ten
dollars
a
year,
a
family
of
four
thirty,
four
thousand
to
fifty
eight
hundred
ten
dollars
a
year
by
2024.
If
the
pike,
a
portion
of
the
wage
tax
is
removed,
that
reimbursement
rate
would
be
increased,
allowing
that
same
family
of
four
to
be
reimbursed
more
than
thirteen
hundred
dollars.
I
want
to
make
it
really
clear.
This
is
not
a
new
program.
A
It
is
simply
expanding
the
current
program
administered
by
the
city's
revenue
department,
allowing
low-income
individuals
and
families
to
receive
an
amount
and
almost
full
refund
on
the
amount
they
paid
the
sitting
wage
taxes.
The
facts
are
that
Philadelphia
taxes,
its
poorest
population
at
the
highest
rate
of
the
top
50
cities
in
the
country
at
18
percent,
larger
than
any
other
large
city
across
the
country.
More,
we
shouldn't
be
filling
the
city's
coffers
on
the
back
of
people
earning
poverty
wages.
We
should
be
putting
their
hard-earned
money
back
into
their
pockets
to
help
them
thrive.
A
This
program
is
similar
to
the
federal
Earned
Income
Tax
Credit.
As
most
in
this
legislative
body
know,
we
all
have
been
a
tireless
advocate
for
making
sure
that
everyone
who
qualifies
for
the
EITC
applies
for
it.
Unfortunately,
due
to
the
state's
uniformity
clause,
it's
illegal
for
Philadelphia
to
create
an
exact
local
copy
of
the
EITC
program.
We
started
conversations
with
the
revenue
department
in
March,
and
it
has
been
understood
that
we
must
rely
on
the
state's
verification
process.
This
would
alleviate
some
of
the
work
on
the
city's
end.
A
A
Additionally,
the
city's
processing
method,
is
less
strenuous
because
those
applying
would
already
receive
the
state's
refund
in
the
state
would
have
already
verified
that
the
taxpayer
falls
within
the
guidelines.
The
structure
of
this
bill
and
its
expansion
of
the
wage
tax
refund
is
the
only
legal
way
to
provide
wage
tax
relief
to
our
lowest
income
taxpayers
and
just
because
our
tools
might
be
dulled
by
uniformity.
Does
it
mean
we
shouldn't
use
them
to
help
those
who
need
relief?
A
The
most
the
administrative
burden
to
expand
the
program
is
extremely
minor
and
well
worth
it
to
put
more
money
directly
into
the
hands
of
lower-income
workers.
Additionally,
the
city
has
the
ability
to
cover
the
cost,
to
provide
these
refunds.
It
is
already
shown
it
has
the
will
to
increase
its
budget,
which,
in
the
last
four
years,
went
up.
855
million
and
tax
revenues
have
increased
dramatically
with
the
thriving
economy
and
they
have
outpaced
projections
annually.
We
need
to
extend
this
success
to
the
neighborhoods
that
need
it
most.