WHYY’s Newsworks consulted Chamberlain Hrdlicka’s SALT practice chair Stewart Weintraub on a recent story entitled “Philadelphians who work outside Pa. could be eligible for wage tax break.”
A 2015 U.S. Supreme Court ruling found that double taxation, or having people pay taxes in two states, is unconstitutional. If a person lives in Philadelphia and works in Wilmington, Delaware, he is eligible for a tax break on his wage tax bill. But, as Weintraub explained in the article, that only applies to a small portion of the Philadelphia population, due to the city’s interpretation of the law. More people would be eligible if the city allowed a credit for local taxes paid for the location of the Philadelphia resident’s employment.