Submitted by drxdrg08 t3_10nryco in Pennsylvania
drxdrg08 OP t1_j6amfp0 wrote
Reply to comment by tsctbulldog in Does Philadelphia really financially support the whole state? by drxdrg08
> philly resident's would generate $1,975,154,125 in state income tax
But do they? Let's do some rough math. And this is fairly easy since both the city wage tax and the state income taxes are not progressive with virtually no exemptions.
> The wage tax accounts for 45% of Philadelphia’s annual revenue, and is expected to decline by about $78 million this fiscal year — despite an increase in the nonresident rate. While it’s difficult to determine how much of that loss is due to furloughs and layoffs as opposed to remote work, the city typically collects 40% of its roughly $1.5 billion in annual wage taxes from nonresidents.
Total income wage tax collected is "roughly" $1.5B, 60% of which is from city residents, so $0.9B. The resident wage tax was 3.8398%, meaning city residents had $23.4B of earned wages. If the tax rate in PA is 3.07%, then they paid $720M in state income taxes.
$720M vs. $1.98B
That's almost 3 times less. How could they support the state?
tsctbulldog t1_j6apscj wrote
I completely agree.
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