Summary
The Tax Reform & Fiscal Stability issue brief examines the historical evolution of Philadelphia’s tax policies and their impact on the City’s economic competitiveness and fiscal health. It highlights past reforms, such as reductions in the Wage and Business Income and Receipts Taxes, which aimed to attract businesses and residents while balancing revenue needs. The report also explores ongoing concerns about tax volatility, reliance on non-property tax revenue, and structural imbalances in Philadelphia’s tax system. With the recent reconvening of the Philadelphia Tax Reform Commission, the report emphasizes the importance of evaluating tax structures to ensure effectiveness, efficiency, and equity. As policymakers consider potential changes, maintaining fiscal stability while enhancing the City’s attractiveness for businesses and residents remains a central challenge.