After climbing to almost 5 percent, the wage tax was trimmed to 4.6 percent in recent years. Mayor John Street and some other city leaders contend that the minuscule tax cut put Philadelphia on the right track. Yet, a recent Pennsylvania Economy League study reported that at the current pace, it will take 60 years for Philadelphia to drop from the top five most taxed cities. Other cities have determined that in order to survive in the mobile New Economy they must cut taxes and boost services. Phoenix was recently rated the best-run city in America by Governing magazine.
Phoenix offers an interesting case study for Philadelphia.
Phoenix's population of 1.3 million is close to Philadelphia's 1.4 million. Yet, Phoenix has less than half as many city workers as Philadelphia. With less than half the staff, Phoenix delivers the best city services in the country. Boston, Chicago and San Francisco levy no wage tax. Paul developed a regional tax that eases the burden in poor neighborhoods and strengthens the overall region.