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In reply to the discussion: House Democrats promise 'meaningful' relief for state and local tax deduction cap [View all]BumRushDaShow
(167,540 posts)29. No progressive rates
Before I retired (which was 10 months befre tax cuts for the wealthy was enacted), my deductions just for state/local income/wage tax were way more than the standard deduction. Since I was renting at the time, I didn't have a property tax deduction that could have also been itemized, but obviously many would have had such.
And in fact, the city wage tax JUST got cut a little this year.
It was over 1% higher than that in past years - starting in the '80s, when it was 4.96% range (for residents), which was enacted literally a couple years before I started my federal career and continued at that rate until the mid-90s.
In fact, found it here (pg "vi" ) - https://www.phila.gov/media/20180301140801/Income-tax-regulations.pdf
On June 2, 1983, an ordinance was approved which increased the rate of tax to 4.96% of salaries, wages, commissions and other compensation earned by residents on and after July 1, 1983.
Effective January 1, 1993 the depository requirements were changed for employers required to withhold Philadelphia Wage tax:
On September 16, 1994, Sections 301 and 303 of the Income Tax Regulations were amended due to Act 48 of 1994 (Commonly known as Suburban Withholding). The state law requires all employers having a place of business within the Commonwealth of Pennsylvania who previously had not been required to withhold the City of Philadelphia Wage Tax to begin withholding and remitting at the prescribed rates on all residents of Philadelphia within its employ.
On March 30, 1995, the Ordinance was amended to decrease the rate of tax for residents to 4.86% on net profits earned after January 1, 1996; and on salaries, wage, etc., earned after January 1, 1996.
Effective January 1, 1993 the depository requirements were changed for employers required to withhold Philadelphia Wage tax:
Quarterly (W-1): less than $350 tax due per month
Monthly (W-5): from $350 to $16,000 tax due per month
Weekly (W-7): greater than $16,000 tax due per month
On September 16, 1994, Sections 301 and 303 of the Income Tax Regulations were amended due to Act 48 of 1994 (Commonly known as Suburban Withholding). The state law requires all employers having a place of business within the Commonwealth of Pennsylvania who previously had not been required to withhold the City of Philadelphia Wage Tax to begin withholding and remitting at the prescribed rates on all residents of Philadelphia within its employ.
On March 30, 1995, the Ordinance was amended to decrease the rate of tax for residents to 4.86% on net profits earned after January 1, 1996; and on salaries, wage, etc., earned after January 1, 1996.
I think that series of decreases happened when Rendell was mayor here (before he eventually became governor).
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House Democrats promise 'meaningful' relief for state and local tax deduction cap [View all]
Calista241
Sep 2021
OP
It's a cap on the tax deductions of middle class homeowners in blue states . N/T
lapucelle
Sep 2021
#10
If you pay more than $10k in property tax per year, you are very high up in the middle class
Calista241
Sep 2021
#13
Because it's a cap on middle class families as well, some of which are barely middle class. There's
KPN
Sep 2021
#18
It's easy to prevent the benefit from being too skewed to the wealthiest...
thesquanderer
Sep 2021
#6
As a working person who pays plenty of state and federal taxes, no way. We need deductions
berni_mccoy
Sep 2021
#12