Chamber proposes 5‑year BERT net‑income elimination and 10‑year wage‑tax cut; consultant says job growth could offset revenue

The Greater Philadelphia Chamber and allied business groups told the Tax Reform Commission they support a bold, phased plan to improve tax competitiveness. William Carter described the chamber’s proposal to eliminate the net‑income portion of the city's business income and receipts tax (BERT) over five years and to reduce the resident and nonresident wage taxes to below 3% across a ten‑year period.

Ethan Conneras of eConsult Solutions, who presented the consultant analysis, said the recommended reductions are linear (equal percentage reductions each year) and that the model includes scenarios linking employment growth to revenue outcomes. "Each 1% increase in annual job growth translates to about $500 million in additional wage‑tax collections over the course of the five‑year plan," Conneras said. He also noted that the city's fund balance and past revenue outperformance could provide fiscal space for adjustments.

Commissioners asked for cost estimates and assumptions underpinning eConsult's projections. A commissioner asked whether reductions are front‑loaded or back‑loaded; Conneras replied the schedule is linear and that the analysis focused on revenue curves under different job‑growth scenarios rather than changing city expenditures. The Chamber committed to providing detailed slides and written materials for follow‑up.

Opponents at the hearing argued that broad cuts would be costly and poorly targeted. Jonathan Stein (Community Legal Services) and others urged prioritizing targeted measures such as improving the wage‑tax refund (local EITC) and programs supporting low‑income households over regressive mill cuts.

Next steps: Chamber and eConsult were asked to submit written costings and underlying assumptions to the commission for incorporation into the commission’s final deliberations.