Question

The city of Philadelphia has a two-tier wage tax. Residents of the city who work within the city limits are taxed at one rate, and individuals who do not live in the city but work in the city are taxed at a lower rate. Are individuals who live and work in the suburbs affected by the tax? Briefly describe which markets are likely to be affected most by the tax and in what direction.

Answer 1

ANSWER :-

☆Since suburbs are viewed as a piece of the city's geological limits, the residents  of suburbs will confront the tax rate at one rate, much the same as the residents.

☆Since the taxes forced on them will rise, they will incline toward moving out of the city or to search for other openings for work.

☆Markets that connect for the most part close by residents like manufacturing plants will confront a higher tax when contrasted with businesses utilizing non-residents .

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