Montgomery County Says Enough to Philadelphia Wage Tax

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Montgomery County is losing millions in tax revenue a year as Philadelphia, unlike almost all other cities in the state, keeps all 3.5 percent of the city’s wage tax paid by non-residents, writes Laura McCrystal for the Philadelphia Inquirer.

With revenues tight from the recent budget issues, Montgomery County, along with other communities, is rallying for change, so it can recoup up to one percent of the tax paid by residents who work in Philly. This could bring in $19.3 million annually to its municipalities and an additional $5.6 million to local school districts.

Philly officials are arguing against the change, emphasizing that wage taxes are invested in road maintenance and public safety, which are services used by commuters. However, officials outside the city counter that they have to pay those same bills in their own backyards.

“It just makes sense,” said Representative Scott Petri, who has introduced two bills to make the change. “Our communities continue to face increasing costs and they’re trying to figure out how to pay for them without increasing taxes.”

Read more about Montgomery County’s loss of tax revenue in the Philadelphia Inquirer by clicking here.

Top photo credit: Benjamin Franklin via photopin (license)

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