Philadelphia’s Wage Tax

Our discussions in class the other day reminded me of an article I read in The Inquirer a few months back regarding Philadelphia’s wage tax. At-large council member Allan Domb proposed a piece of legislation that would allow eligible low-income Philadelphia workers (both residents and non-residents) to receive a refund on their paid city wage tax. According to Councilman Domb, Philadelphia taxes its poor at a rate significantly higher than comparable cities. This is particularly alarming because of the major U.S. cities, Philadelphia has one of the largest percentages of residents that fall below the poverty line. Because of legislation that requires consistent tax rates across the state, the bill – which has since been passed – does not directly address the rate itself but instead finds a bit of a loophole and will attempt to remedy the situation through direct refunds. While this is a move towards more equitable taxation, I will be curious to see how effective it is in practice, particularly because the refund relies on people being aware of their eligibility and applying for the refund.