Lawrence Tabas, newly elected chair of the Pennsylvania Intergovernmental Cooperation Authority (PICA), was quoted in the Philadelphia Inquirer on the PICA Board approval of Philadelphia’s Amended Financial Plan. Lawrence said that with the potential for an increase in the state income tax that is being advocated by one candidate for Governor, together with the high Philadelphia Wage Tax and the City’s extra sales tax, young families are evaluating whether they can stay in Philadelphia and the middle class is being squeezed. Lawrence advocated a reduction in the City’s Wage tax to 3% by the end of 2015. The current City Wage Tax is 3.92% for City residents and non-residents who work in Philadelphia pay 3.49%. PICA, created by the Legislature, is charged with overseeing the City’s finances.
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