Uber calls on Philly riders to speak out against $1 rideshare tax at city council meeting
Uber calls on Philly riders to speak out against $1 rideshare tax; City council reacts
Mayor Cherelle Parker’s plan to add a $1 tax to every ride share trip in Philadelphia is facing tough questions from City Council, as members debate whether the move would help schools or put more pressure on struggling residents, according to city officials.
PHILADELPHIA - Uber is taking its fight against Mayor Cherelle Parker's proposed $1 rideshare tax to City Hall.
What we know:
The rideshare giant sent a push notification on Monday asking its Philadelphia-area riders to gather outside City Hall on Tuesday, where a City Council Committee will open the floor for public comment.
"Keep rideshare affordable. Speak out at TOMMORROW's 1:00 p.m. public hearing at City Hall," read Uber's push notification headlined ‘Urgent: Stop the $1 tax.'
The backstory:
Mayor Parker has advocated for the $1 rideshare tax, claiming it would help prevent major staffing cuts in the Philadelphia School District.
The first-term mayor said the tax would generate $48 million for the school district, with an additional $2.4 million expected from a proposed use and occupancy tax on cell towers.
"I am not willing to standby and watch our school district of Philadelphia lose 148 teachers. 23 counselors and 119 climate staff. That is absolutely unacceptable," Parker previous said.
The school district says it faces a $300 million structural deficit, putting 340 school-based positions at risk, including teachers, counselors and climate staff.
What they're saying:
Superintendent Dr. Tony Watlington called the potential benefits of the money collected from the tax "significant," adding that it would prevent staffing cuts or reassignments all over the city.
Dr. Robin Cooper, president of Local 502 Commonwealth Association of School Administrators, said, "We need the dollars. This is not a political decision. This isn’t an educational decision, this is a moral and ethical decision for our children."
Meanwhile, some residents have raised concerns that the $1 tax could be passed on to riders.
"City Council was not consulted in any way before these decisions were made. It was not discussed. You did not speak to the community," said Cindy Bass, City Councilmember for the 8th District. "Throwing bad money after bad money and keep on piling on like my colleague said. Another poor tax. Just like the soda tax," said Jim Harrity, Councilmember At Large.
Council members spent the morning questioning the mayor’s plan, with many expressing skepticism about adding another tax. The debate became heated enough that Superintendent Tony Watlington and the School Board President Reginald Streater were called to council chambers a day before their scheduled testimony.
Community and industry reaction to the proposed tax
Local perspective:
Philadelphia school principals gathered outside council chambers to show support for the new tax. "We cannot take a step backwards our schools are safer. Our attendance is up. Are graduation rate is up. We need these funds," said Dr. Robin Cooper, Teamsters Local 502 CASA.
The other side:
Rideshare companies and delivery platforms pushed back, saying the tax would hurt low-income neighborhoods the most.
"Increased prices will make everyday essentials less affordable for the city’s most vulnerable residents. And thousands of small businesses owner platforms will also suffer with fewer and smaller orders and less business," said Brianna January, DoorDash spokesperson.
During public comment, some residents supported the tax, but most spoke against it. "If you are going to do this and have all these taxes make it affordable for people who are working. Y’all making these corporations get over on it. Stop that," said Christopher Williams of North Philadelphia.
Philadelphia’s school board officials say the district faces a $300 million structural deficit and $800 billion in deferred and replacement costs, according to Reginald Streater, president of the Board of Education. "I don’t care if we go under the mattresses to find the money. The Board of Education has a real issues. A structural deficit of $300 million. $800 billion in deferred and replacement costs. I don’t care how we get the money," said Streater.
Rideshare taxes in other cities
Big picture view:
About 50 cities across the United States have implemented similar rideshare taxes, according to city officials.
The debate in Philadelphia is expected to continue during the full council session, with a final vote on the mayor’s budget scheduled for next month.
The proposed tax comes as the school district faces a budget deficit and the possibility of closing 18 schools under the District’s Facilities Plan.
What we don't know:
It is not yet clear if City Council will approve the rideshare tax or if changes will be made to the proposal before the final budget vote next month.
The Source: Information from Philadelphia CIty Council, City of Philadelphia officials, Philly residents and rideshare spokespersons.