Los Angeles Mayor Eric Garcetti last week signed his business tax cut plan into law and received the endorsement of the Los Angeles Business Council for his plan to increase the city’s minimum wage.

“Together with the city council, we are taking a strategic approach to creating jobs and opportunity for Angelenos,” Garcetti said. “Cutting our business tax will entice more businesses to stay, come and hire in L.A., and responsibly raising the minimum wage will inject significant spending into our neighborhood businesses. I’m proud to have the support of the Los Angeles Business Council, which represents such a broad cross-section of L.A. businesses.”

The business tax cut plan is just the first step, officials said.

“We are committed to further reforming our business tax to make it cheaper, more predictable and less arbitrary,” said Councilman Paul Krekorian, 12th District, who chairs the council’s budget and finance committee. “Tax reform like this works, and I’m confident it will help grow our economy and create more jobs for Angelenos.”

The business tax cut represents a 16 percent overall reduction over three years, saving L.A. businesses a total of $90 million, officials said. The cut takes the top tax rate from $5.07 per $1,000 in gross receipts to $4.75 in Fiscal Year 2016, $4.50 in Fiscal Year 2017 and to $4.25 in Fiscal Year 2018.

Garcetti’s minimum wage plan would gradually raise the wage to $13.25 through 2017. After that, this measure ties the minimum wage to the Consumer Price Index to keep pace with inflation.