ted egan for his work, reaching out to many parts of the business sector and much of the modeling that has been going on. ben rosenfield and others. we have the opportunity of taking our business tax system which is an archaic system based on payroll which does have an inhibiting effect on job creation in san francisco. we also are -- we of the current extension of ipos. we are the -- we have a current extension of ipo's. this would elminate the taxation that occurs. it will happen if we don't make changes to the community. revenue generation is a vital part of what we want to do with our business tax especially in 2001, there was a change that happened when many businesses, some of the largest corporations in san francisco had settled to eliminate the gross receipts tax that had existed at that time. there are parts of the business community that are not paying the same kind of taxes they were in the past and it has created a hole. we would expect $40 million you're counting our financing for the settlement as well as inflationary measures. people would say our business tax has increa

in april, ted egan came and did a presentation on the different business tax proposals that were beingd and we fully supportui%by framework shifting from payroll tax to gross receipts tax. we are disappointed to find that the proposal is being considered -- the proposals being considered did not address the city's need for new revenue. we

we also want to think controller been rosenfeld, -- ben rosenfeld and ted egan. thank you for coming together and doing good for the city and county of san francisco. president chiu: next speaker. >> good afternoon. as you well know, there have been numerous attempts over the course of the last decade or so to reform the city's business tax. the payroll tax has been viewed as a disincentive to job creation. we believe that this is a well crafted solution. it is amazing. i have to give a lot of kudos to the controller and the staff and chief economist as well as supervisor chiu and the mayor's office and supervisor avalos. coming in this -- together in this way is a way to make comprehensive public policy and this is a great way to chart a path for the city moving forward. i forward, so i encourage your support. president chiu:

in april, ted egan came and did a presentation on the different business tax proposals that were beingered and we fully supportui%by framework shifting from payroll tax to gross receipts tax. we are disappointed to find that the proposal is being considered -- the proposals being considered did not address the city's need for new revenue. we actively worked with supervisor avalos to create an alternative business tax measure and we thank supervisor kim, mar, olague, and campos to sponsor it. we look forward to supervisor chu also been on board. we support amending the fee structure to add an annual adjustment based on the consumer price index. supervisor chu: thank you. next speaker. >> i am the secretary treasurer of opiu local #3. i was encouraged by the controller and the report talking about the two initiatives and how close they are. the idea of switching from a payroll to a gross receipts is something that we obviously need. we need some stability within our economic system. we need to make sure that we're creating jobs through the tax system and we need to spread the tax base. -