Michael Nutter, who recently resigned from City Council to run for mayor, has championed a variety of tax cuts throughout his career and is now making these proposals the centerpiece of his campaign. Tax cuts are always popular, but voters should take a second look at Nutter's proposals. Unfortunately, the evidence shows that former Councilman Nutter's legislative agenda will do little to make Philadelphia taxes fairer and might actually do long-term harm.

The focus of Nutter's tax plan is a complete elimination of the Business Privilege Tax (BPT). According to city officials, the cut would cost $109 million from now through 2009. Widely praised by the business community and media outlets, this proposal is supposed to make Philadelphia more competitive. Nutter claims that lowering taxes for businesses will help lure jobs back to the city.

There are major flaws in this argument. As New York City mayor and business tycoon Michael Bloomberg has written: "Any company that makes a decision as to where they are going to be based on the tax rate is a company that won't be around very long. ... If you're down to that incremental margin, you don't have a business."

Economic data show how problematic Nutter's proposal really is. The Corporation for Enterprise Development (CFED) has released a series of studies examining regional characteristics that are likely to attract high-wage jobs and industries. According to these reports, local tax laws have little or no impact on industry location. Instead, business leaders are much more concerned about high quality of life, a well-educated workforce, adequate mass transportation and quality health care. Clearly, Philadelphia should be focusing on these areas if the city wants to attract good jobs.

Nutter's scheme could actually have a negative impact on the region's job growth. Such a large tax cut will have a drastic impact on the city budget. In all likelihood, vital city services will have to be cut. CFED's report suggests that a reduction in social programs might make Philadelphia even more unattractive. Instead of severe tax cuts, city leaders should be fighting for better schools and public transportation.

Nutter and his supporters claim that reducing the BPT is the only way to keep Philadelphia competitive. But tax cuts aren't the only tool available for generating economic growth in Philadelphia. For example, there are several innovative community development corporations that are creating jobs from the bottom up. In Northwest Philadelphia, the Ogontz Avenue Revitalization Corporation has pioneered a holistic approach that includes public safety, urban beautification and affordable housing. Instead of simply slashing taxes for business, Nutter would do better to study alternative models to make Philadelphia a better place to live.

The bad ideas don't stop with the BPT. In 2002, Nutter successfully pushed for a 10 percent cap on the growth of property taxes. Property tax relief is an important issue, but a growth cap is not sound public policy. It provides the most protection to homes that have dramatically increased in value. This means that wealthy individuals — like those buying the $500,000 condos that are springing up everywhere — receive a larger tax break than people of more modest means.

A better form of property-tax relief would be targeted toward middle- and low-income homeowners. This could be achieved by placing a maximum income level on the already existing cap. Wealthier individuals could still be taxed at a higher rate and middle-class homes would be protected. This reform would provide relief to the majority of taxpayers but still protect an important stream of revenue for Philadelphia. In addition, it would make the tax code more progressive by shifting the burden away from Philadelphia's working-class families.

Nutter was known as the policy wonk of City Council. By all accounts, he is a dedicated public servant who wants to do what's best for Philadelphia. Now that he is officially running for mayor, voters must carefully consider his record. Many of his tax proposals sound appealing at first, but the rhetoric does not match reality. By resigning his seat, Nutter has made it clear he is serious about running for mayor. Now let's see if he is serious about designing a better tax code.

Ben Waxman is a research associate at Citizens for Tax Justice.