Quote:
Originally Posted by GarCastle
Yeah, didn't we have a term for that back in the day? Taxation without representation?
Cheers,
G.
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Total misrepresentation of what that means. You are CHOOSING to pay the tax, no one is FORCING you to work in Philadelphia. If you choose to come into Philadelphia everyday and use the infrastructure it makes sense for you to contribute.
Also, there is a big misunderstanding of what the wage tax burden actually is.
In PA we have a flat state tax of 3.07%. If you live in Whitemarsh Twp and work in Plymouth Twp (just pulled an example out of thin air) you would pay 1.25% in local wage taxes. For a total state and local burden of 4.32%.
If you happen to live and work in Philly you pay a wage tax of 3.92%. For a total state and local tax rate of 6.99%.
So a suburbanite (in this example, but it varies depending on municipalities) pays about $4,320 annually in state and local taxes on a salary of $100,000. A city resident pays $6,990. A difference of $2,670 annually. Is that enough to make a person with a $100,000 income flee the city? I think not. You save that much (or more) by being able to walk to work instead of drive.
Throw in property tax differences and it is a bargain to live in Philadelphia.