Philadelphia Mayor Michael Nutter has worked out a budget deal with city council, but it appears that he will need to back off some on his wage and business tax cuts, because of the economy, according to a KYW1060 article.

The elimination of the gross receipts portion of the business privilege tax will happen over ten years instead of eight, the first-ever reductions to the net income portion of the same tax will happen, but at a rate half as fast as originally proposed. The plan for wage tax cuts over the next five years will be tweaked so that it is slightly less aggressive.

These changes are because of declining revenue projections, including a large drop in the revenue from the real estate transfer tax.

Photo courtesy of MCT Campus.

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