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BumRushDaShow

(167,540 posts)
29. No progressive rates
Wed Sep 15, 2021, 01:14 PM
Sep 2021

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:

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).

Recommendations

0 members have recommended this reply (displayed in chronological order):

This Is An Important Reform smb Sep 2021 #1
The SALT cap was a blue state punishment berni_mccoy Sep 2021 #2
It's a cap on tax deductions for rich people. Calista241 Sep 2021 #3
Rich people already pay little to no SALT. berni_mccoy Sep 2021 #4
+1 OneCrazyDiamond Sep 2021 #5
It's a punishment for people in blue states Freddie Sep 2021 #8
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
The "problem" BumRushDaShow Sep 2021 #17
That's not true where I live on Long Island. N/T lapucelle Sep 2021 #23
Because it's a cap on middle class families as well, some of which are barely middle class. There's KPN Sep 2021 #18
First of all TX was one of the biggest victims of the cap. cinematicdiversions Sep 2021 #14
Texas has no state income tax and the state takes more berni_mccoy Sep 2021 #21
TX has almost NJ levels of property taxes. cinematicdiversions Sep 2021 #30
That cuts both ways FBaggins Sep 2021 #20
It's easy to prevent the benefit from being too skewed to the wealthiest... thesquanderer Sep 2021 #6
Or the cap could be based on their income berni_mccoy Sep 2021 #7
THIS BumRushDaShow Sep 2021 #9
Get rid of all deductions. twodogsbarking Sep 2021 #11
As a working person who pays plenty of state and federal taxes, no way. We need deductions berni_mccoy Sep 2021 #12
It is true you are taxed twice, but OneCrazyDiamond Sep 2021 #15
Most people easily hit that in MA berni_mccoy Sep 2021 #16
Most people if MA easily hit that? OneCrazyDiamond Sep 2021 #25
Yes. Two people with combined income of 100k berni_mccoy Sep 2021 #27
Two people with a six figure income should pay more taxes. cinematicdiversions Sep 2021 #31
In that scenario I would take the standard deduction. OneCrazyDiamond Sep 2021 #32
In the city of Philadelphia BumRushDaShow Sep 2021 #19
You guys don't have a progressive rate? OneCrazyDiamond Sep 2021 #26
Most state income taxes are flat, yes. And you must factor in berni_mccoy Sep 2021 #28
No progressive rates BumRushDaShow Sep 2021 #29
I guess the rich will get their tax cut. PoliticAverse Sep 2021 #22
I don't think they will end up with a "full repeal" BumRushDaShow Sep 2021 #24
Plus forgiveness of college loans? cinematicdiversions Sep 2021 #33
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