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Philadelphia’s tax mess calls for reform
Philadelphia’s tax mess calls for reform
Feb 2, 2026 2:54 AM

When I lived in Philadelphia, Pa. as young boy, I always wondered why they called it the city of “Brotherly Love,” especially since some of the neighbors seemed so mean. The name “Philadelphia” is mentioned in Revelation 3:7. William Penn gave the city that name so as to serve as a reminder of the importance of religious liberty, peace, and an optimistic spirit. “We must give the liberty we seek,” said Penn.

Some of my family roots hail from the city simply known as Philly. Crime has long been an epidemic, where even relatives of mine have been victims of violent crimes. Philadelphia elected a a new mayor named Michael Nutter, a former city councilman. Nutter was sworn on January 7 of this year. David Whelan writes about Philadelphia and its fiscal mess in an article titled A Philly Tax Cutter for City Journal. Whelan believes while crime receives most of the attention, lasting repair and reform for the city is dependent on economic improvement.

Whelan points out how Philadelphia, with its unpopular business-privilege tax, is not friendly to entrepreneurs. Nutter has long championed a reduction or outright repeal of the business-privilege tax. Whelan notes of Philadelphia’s tax burden:

Philadelphia continues to have the nation’s second-highest individual tax burden after New York City. Philadelphia Forward cites a study finding that a typical city resident’s total tax burden from state and local taxes is 14 pared with 9 percent in the nearby suburbs. For businesses, it’s way worse—roughly nine times what businesses pay in other large American cities or nearby suburbs. Defenders say that Philadelphia has been a victim of the same deindustrializing forces facing other densely populated, older cities. Yet it has adapted poorly. Even the mild-mannered Federal Reserve has spoken out against Philly’s taxes, calling them “onerous” and an “incentive to leave.”

Philadelphia was of course the first capital of this nation. States and individuals, many of them merchants, came together to cast aside the tyranny and taxation of the English Crown. It will be interesting to see if “A Philly Tax Cutter” who campaigned as a reformer can help reform Philadelphia’s hostility towards business and entrepreneurs.

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