WHEREAS, The unregulated business economy refers to work in the City of Philadelphia that is not completed through formal and taxable means; and
WHEREAS, Nonunion businesses historically have employed workers who are undocumented or are misclassified by their employers, who do not pay income tax to the City of Philadelphia, representing a sizeable economic burden on the City; and
WHEREAS, Businesses, further, neglect to pay payroll taxes and reducing funds available for social welfare programs; and
WHEREAS, The Underground Economy Task Force, initially organized in 2018 by the Mayor, has been disbanded and is no longer analyzing the effects of the unregulated business economy; and
WHEREAS, There must be a mechanism for identifying businesses that employ workers without paying proper taxes and engage in unlicensed construction projects; and
WHEREAS, Unlicensed projects can result in harm to nonunion and undocumented workers; and
WHEREAS, The Department of Licenses and Inspections has not provided adequate response to known cases of tax fraud and unlicensed construction projects; now, therefore, be it,
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That it hereby authorizes the Committee on Labor and Civil Service to hold a hearing examining the economic burden of the unregulated business economy on the City of Philadelphia.
End