Tuesday, February 18, 2014

We're #2 - Why are Philly Poor Taxed More?

Philadelphia Republican City Committee
Hon. John J. Taylor, Chairman

Contact:          Joe DeFelice, Executive Director
Phone:             215-756-4158 (mobile)
Email:              josephjdefelice@phillygop.com

Philly Poor Taxed More
Low-income residents forced to shoulder second highest tax burden
Philadelphia, PA, February 18, 2014:  According to a USA TODAY article “Top 10 cities with the highest tax rates” Philadelphia ranks second for cities with the highest tax burdens citing information from the Office of Revenue Analysis. Most revealing is the fact mentioned in the article, “Philadelphia's poorer families were subject to a much higher tax burden than those in most other large cities.” The Office of Revenue Analysis determined overall local tax burden by identifying four types of taxes:  income, property, automobile, and sales. Also a direct correlation exists between higher tax burdens and higher unemployment rates in large cities with Philadelphia’s unemployment rate at 8.6 percent, tied for third highest among the top 10 cities with the highest tax burdens. 
In response to the article Executive Director of Philadelphia’s Republican City Committee Joe DeFelice stated, “As a city government we need to enact policies that support upward income mobility. Unfortunately Mayor Nutter and the Democrat controlled City Council keep raising taxes on the most vulnerable, the working and middle class, who could use the extra money rather than paying burdensome taxes.” Higher tax rates deter economic growth and force business to think twice before relocating to Philadelphia and creating much needed jobs. 
According to Melvin Jonakin, owner of Schuylkill Falls Family Barber Shop and Schuylkill Falls Landscaping, “In order to create more jobs in Philadelphia, City Hall must reduce the tax burden on businesses and individuals. We need to increase the tax base and get more oars in the water instead of increasing tax rates and drowning our residents in a sea of taxes.” Also noted in the article, local taxes for a family earning $150,000 a year are $25,317. Financially it makes sense for two young professionals starting a family to relocate outside of the city where taxes are less burdensome. Being the city with the second highest tax rate hurts local families and businesses and hinders job creation. DeFelice concluded, “It should be Mayor Nutter’s top priority to work with City Council with the goal of reducing taxes on all Philadelphians, especially the working poor. A great first step will be rolling back the “temporary” property tax hikes proposed by Mayor Nutter and Democrats on City Council which were due to expire in 2012 but to the detriment of working families are still with us as well as following the lead of Republican City Councilman David Oh who recently put forth a plan to reduce the wage and net profits tax over a period of ten years by $100 Million thus resulting in a shift in the wage tax from 3.92% in 2014 to 2.09% in 2025.”
Philadelphia Republican City Committee · 3525-27 Cottman Avenue · Phila., PA 19149
                                215-561-0650 · www.phillygop.com · Facebook.com/PhillyGOP · Twitter.com/PhillyGOP

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