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Philadelphia Mayor Cherelle Parker took shots at rideshare companies Thursday after her proposed $1 tax on Uber and Lyft rides was struck down by City Council in the preliminary budget.
City Council approved a $7.1 billion preliminary budget, rejecting many of Parker’s tax proposals, including increases to hotel taxes and delivery services. A final vote on the budget will take place June 11.
Some of Parker’s proposals included in the budget focus on the H.O.M.E initiative for housing and funds for multiple support centers in Philadelphia. (City of Philadelphia)
Mayor says ‘billionaire tech companies’ win ‘round 1’
Parker addressed what she called the “elephant in the room” after the rideshare tax increase was cut. The tax would have generated $48 million in recurring funding for the School District of Philadelphia, which is facing a $300 million structural deficit. The district will instead get a one-time payment of $48 million from the preliminary budget.
Parker called out the rideshare companies’ business practices and lobbying efforts, such as Uber’s six-figure advertising campaign, which said it would affect citizens facing a high cost of living, senior citizens and people with mobility issues.
“Asking and expecting them to contribute more to the city that they profit from is not unreasonable or illogical. It is fair,” Parker said. “It is the right thing to do, and I want you to know that I have no intention of stopping.”
Why Council struck down the tax proposals
In addition to the school budget deficit, Parker’s tax proposals also aimed to pay for pothole repairs and fund homelessness prevention. Councilmember Katherine Gilmore-Richardson said striking down the rideshare tax doesn’t mean her colleagues are against the school district.
“I reject anyone who will rise anywhere to say that this Council did not stand up to do what we needed to do for our children,” Gilmore-Richardson said.