Title
Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by amending the definition of "Net Income" with respect to the portion of net income that is properly attributable and allocable to the doing of business in Philadelphia and therefore subject to tax, and by making technical amendments; and by making certain legislative findings with respect to manufacturing; all under certain terms and conditions.
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THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Legislative Findings. The Council finds that:
(a) Manufacturing is one of the original building blocks of Philadelphia. In fact, many neighborhoods grew up around these factories, and generations of citizens have found some of the highest paying jobs in the city, right around the corner from their residences. Over the past few years, manufacturing has consistently ranked as the number three or four largest contributor to revenue for the City of Philadelphia (ahead of education). In spite of a dramatic reduction in force (250,000 manufacturing jobs in 1970 to approximately 40,000 in 2005), the quality of jobs represented by this sector has made it a valuable link in the economy of both city and region.
(b) While the City has spent millions of dollars to address social service needs, there is a recognition that without adequate, well paying jobs, it will be impossible to stabilize the City's neighborhoods.
(c) Manufacturers are facing daunting challenges. Because of intense global competition, manufacturers can not raise prices despite rising costs. The costs of doing business in the City continue to increase due to external impositions including taxes, legal and regulatory fees, energy and health care costs. A recent study shows that these costs add about 22 percent to the cost of doing business here, almost equal to the total cost of production in China.
(d) Despite these challenge...
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