Coalition for Effective, Efficient, & Equitable Tax Reform

Protecting Philly's
economic wellbeing

122,000 working families, tradespeople, caregivers, gig workers, and creative entrepreneurs are facing a massive tax increase in 2026 and beyond.

We are the individuals and organizations working together to change that.

122K
Employer & Non-Employer businesses affected
85%
Of Philly businesses are single-owner
<1%
Fiscally responsible, impacts less than 1% of city budget

"This BIRT problem has become a pressure point with small mom-and-pop businesses.

This could be the difference between those businesses being open or closed."

— Councilmember Mike Driscoll
📄 Download the One-Pager

Philadelphia's tax code wasn't built for the modern workforce

Starting in 2026, all businesses in Philadelphia are about to be hit with a new—and probably surprise—tax bill.

For the last 10 years, the smallest businesses in Philadelphia had a shield from the regressive Business Income and Receipts Tax, lovingly known as BIRT.

That shield allowed them to start and grow into a business that could support themselves, their family, their community, and employ other Philadelphians.

In 2026, that shield is gone.

The Scale of the Problem

While this information is public, most people don't realize the scale of the impact it's about to have on Philadelphians who run a small business as a way to simply survive.

If in 2025 you earned $50,000 and you are a:

Laborer (Independent Contractor) Individual Enterprise Family Enterprise

In April 2026, your Philadelphia tax bill will increase by:

+$1,208
+$3,746

That's between 1 and 3 months' rent for many Philadelphians—and they simply can't afford it.

"I don't think we realize how catastrophic this is gonna be, [and] not just for small businesses.

Us getting rid of the $100,000 exemption while simultaneously not reducing the net income portion of BIRT will make it so that everybody [...] will leave Philadelphia."

A system problem, not a rate problem

Philadelphia's two-class tax system treats every corporation and non-corporation the same: whether you're a solo freelancer, a 50-person partnership, or a large corporation like Comcast.

This means individual business owners face double taxation on income already captured by the Net Profits Tax, while corporations do not.

"We are taxing working families out of their homes."

"We're going to see many businesses that have never filed taxes before trying to figure out how or where to file these taxes...I don't even know how many of them will know this is happening."

— Council Member Kendra Brooks, a former small business owner

The LIFT Act

Fix the system. Create a tax class for Laborers (Independent Contractors), Individual Enterprises & Family Enterprises (Individually owned LLCs).

📋

Exempt from BIRT

Removes BIRT for the LIFT class completely.

Keep NPT Tax

This isn't a free ride.

⚖️

Legally Sound

Meets Pennsylvania Constitution's Uniformity Clause requirements. Confirmed by Philadelphia Law Dept.

💰

Keeps Money Local

Every dollar retained by a Philadelphian becomes three dollars in local spending.

"I'm not talking about incremental change.

I'm talking about bold, transformative steps..."

— Mayor Cherelle Parker, Inaugural Address, January 2, 2024
Current Timeline
Bill introduced by
Councilman Driscoll
Nov 25
Finance Committee
Hearing
TBD
Effective
Date
Immediately

The Backbone of Philadelphia's Economy

These are your neighbors, the people who power your community.

Freelancers Artists & Creatives Rideshare Drivers Home Daycare Providers Barbers & Stylists Food Truck Owners Plumbers & Electricians Consultants Therapists Social Media Creators Corner Store Owners Caregivers

Join Our Coalition

Get updates on our efforts, actions you can take, how to spread the word, and other ways to ensure we protect Philly's economic wellbeing.

Organizations Standing Together

Coming soon

Committed individuals & organizations coming soon

Learn More & Get Involved

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"The tragedy of life is often not in our failure, but rather in our complacency..."
— Dr. Benjamin E. Mays
Renowned educator, minister, and civil rights leader.
President of Morehouse College and lifelong mentor to Dr. Martin Luther King Jr.