Mayor Parkers second budget proposal puts focus on housing, tax cuts

Mayor Cherelle Parker's second budget proposal, amounting to $6. 7 billion, prioritizes affordable housing and tax cuts to invigorate Philadelphia's economy. The plan seeks to borrow $800 million to create or preserve 30,000 affordable housing units, with specific strategies to be discussed at a City Council session on March 24. Parker's administration aims to cut wage taxes and the Business Income and Receipts Tax (BIRT), which could be the first comprehensive tax reduction in 17 years, according to the Mayor's Office. The proposal also includes eliminating a construction impact tax that has been viewed as a barrier to development.

However, to fund these initiatives, the budget suggests raising the real estate transfer tax and document recording fees. Parker stressed the urgency of housing needs, stating, “Philadelphians need more housing, and they need it now. ” Council President Kenyatta Johnson praised the proposed tax reductions as a “step in the right direction,” framing them as investments in the city’s future. The budget reflects a delicate balance between fostering business growth and ensuring fiscal responsibility.