As Pandemic Eases, Suburbanites Working from Home Might Force Philadelphia Tax Structure Overhaul

Christine Tarlecki
Image via Reddit.

With work from home keeping the majority of suburbanites out of the city, Philadelphia may have to retool its tax policies that include the highest-in-the-nation wage tax, write Christian Hetrick and Laura McCrystal for The Philadelphia Inquirer.

The pandemic has already taken a significant bite out of the city’s tax base. The future economic impact of widespread remote work and how it would affect city finances is still unclear as companies continue to reassess their post-pandemic plans.

Some now hope that the crisis will heighten the urgency to address tax policies in Philadelphia that have long been criticized as being a hindrance to job creation.

These include the 3.5 percent commuter wage tax, which some of the biggest employees in the city have stopped paying while people are working from home. However, employees who start telecommuting will have to pay the wage tax once again.

Paul Levy, president and CEO of the Center City District, believes this is the right time to restructure the tax code.

“Will Philadelphia seize the opportunity? There’s a question mark after that,” he said.

Read more about the wage tax in The Philadelphia Inquirer by clicking here.