Sam Katz has proposed an ambitious economic development program called "Philadelphia is Open for Business" that he says will help reverse the loss of jobs and residents from the city.

The elements of the Republican mayoral nominee's plan were contained in a 23-page paper released yesterday that attempted to link a broad variety of issues into an integrated blueprint for economic improvement.

The links include tax and land-use policy, bureaucratic streamlining, job-oriented education initiatives and neighborhood-strengthening proposals.

In an interview, Katz said his plan would be financed by a combination of federal funds, state authority financing and private venture capital.

With the exception of his proposed reduction of the wage tax from 4.61 percent to 4 percent over the next four years, his plan's impact on the city's $2.7 billion general fund budget would be negligible, said Katz.

The proposed wage-tax cuts, which would reduce revenue by about $110 million a year in 2004 and thereafter, are an essential part of Katz's overall economic program, though he doesn't dwell on them in his policy paper.

"We continue to treat small business owners as the enemy rather than the bridge to the future," said Katz. "This attitude must be changed. Government actions have to demonstrate that Philadelphia is open for business."

Current policies have led to Philadelphia having the heaviest business tax burden of any city in the country, said Katz. That, in part, is the cause of Philadelphia losing population in the 1990s as well as employment growth of only 5 percent, compared to a 13 percent job growth and 4 percent population growth in Detroit, he added.

Among the steps Katz calls for:

A rebate of gross business privilege taxes for certain start-up companies to encourage the formation of local firms. This would be in addition to Mayor Rendell's plan to reduce that tax by $20 million a year in 2004.

The creation of Philadelphia Opportunity Zones, which would offer tax deferrals to promote the development of old buildings and vacant lands within tax-increment financing districts.

The formation of a $100 million Philadelphia Venture Fund Co. to invest in new companies in the city. The fund would be privately managed, said Katz, and would seek capital from private sources and pension funds. He said he envisioned most venture-fund investments ranging from $500,000 to $2.5 million to help companies in the early stages.

A "smart building" program in which incentives on fees and taxes would be offered to those who develop buildings that are wired to meet modern technology standards.

Expand home ownership by using "housing subsidies . . .largely from federal sources." A second proposal is to use federal money for early intervention in neighborhoods that show signs of deterioration.

Creation of an initiative to encourage retail development, particularly in the inner city. This would be an expansion of an existing program in which the city tries to attract retail stores to serve communities.