Philly Tax Rates Are Down For the Count...Again!

The Thrilla In Phila continues as the fight to knock out the Philly Tax Monster enters the late rounds.  The Tax Monster scored points early, knocking the city down by more than 250,000 jobs since 1969.  But we have been rallying late and we have been sticking and moving -- lowering our tax rates, while INCREASING our tax revenues and REDUCING the gap between national employment growth and Philadelphia employment growth! That's a TKO to all those who think that tax reform threatens vital city services...I'll pause while they take a mandatory standing eight count.

As of January 1st, the Wage Tax for residents (once 4.96%) is slashed to 4.2190%.  The non-resident rate goes to 3.7242%.  The last time the Wage Tax was this low was in the Pre-Rocky era -- way back in 1976.  "Cut me, Mick!" indeed!

The Gross Receipts portion of the job-killing Business Privilege Tax also took a stiff jab from changes won by tax reformers as the levy paid on city receipts (once .50%) fell again all the way down to .1415% for tax year 2008!  Yo Adrian...that's Byoo-Tee-Full!

As Mayor Nutter gets ready to step into the ring, he understands that we must continue to deliver body blows to the Wage Tax, which thanks to current legislation, will go down to 3.25% in 2015 -- gaming-related revenues from the state could knock off an additional half-point!  On the campaign trail, the Mayor is on record as wanting to continue the Wage Tax cuts, eliminate the Gross Receipts portion of the job-killing Business Privilege Tax, and cutting the BPT's Net Income portion -- still a devastating 6.5% -- down to size.  That is a winning combination!

In it's recent newsletter, the Center City District once again outlined our tax-competitiveness problem:  "The BPT adds at least a 14% premium onto downtown occupancy space.  For the city's 20 largest partnerships -- law, accounting, consulting, and financial-service firms -- the BPT burden ranges from $7.75 to $12.40 per square foot (a 30-48% premium), which means a 100,000-square foot firm can save around $1 million a year by leaving the city."

While some still screech that tax cuts equal service cuts the Center City District correctly notes:

"To define our choice as tax reduction versus quality municipal services simply misses the point.  In the post-federal era, the only way Philadelphia funds the basics -- clean and safe streets, quality education and essential social services -- is by lowering taxes enough to prompt dynamic private-sector growth."

Some say you can't fight City Hall, but we have been fighting City Hall...and winning.  Now we'll see if -- with the help of a City Hall that is more enthusiastic about moving Philadelphia forward -- we can make Philadelphia a preferred place to live, work, and visit!

We Can Celebrate -- Have Some Fun, Fight Fans!

Play our "Knock out the Philly Tax Monster" game and see if you can take him down for the count!  Please email me at if you knock him out, let me know what he says when he hits the canvas...if you are one of the first successful boxers, I'll send you a "Knock out the Philly Tax Monster" T-Shirt!

If you have a glass jaw, or just don't feel like tiring out your thumbs trying to score a knockout, you can purchase a "Knock Out The Philly Tax Monster" T-Shirt from the Philadelphia Forward online superstore.  Let Philadelphia know that you are fighting the good fight by sporting our "Knock Out The Philly Tax Monster" T-Shirt.