The Tax Man Cometh for City Employees
By VINCE LATTANZIO
Updated 8:50 AM EST, Fri, Jul 31, 2009
It's time to pay up if you're a Philadelphia city employee who's been dodging the tax man. Otherwise, the boss is going to dock your pay.
There are 1,300 city employees who are tax delinquents, according to city officials. They each will be sent a letter indicating that they have 30 days to pay up. If they don't, the mayor plans on taking it from their paychecks.
"My administration has pursued aggressively all back taxes in Philadelphia and it is especially important that city employees are fully paid up,” said Mayor Michael Nutter. State law allows officials to garnish the employee's wages by 20 percent each paycheck and the city plans on deducting the full amount.
Philadelphia is facing a budget deficit of more than $1 billion over the next five years, so naturally, the city is trying to save or make money wherever it can. Residents have seen deep cuts into city services such as pool and library closures and tax hikes and city workers have had pay raises frozen. Officials have also gotten aggressive on reclaiming unpaid taxes.
The Nutter Administration published several lists of known tax deadbeats, set up an anonymous fraud tip line and even held press conferences in front of businesses who owe City Hall money.
You may remember the mayor's sidewalk confrontation with Robert Gamburg in March. The attorney began arguing with Nutter after being called out in a press conference in front of his Center City law offices. "Did you bother to check to see whether or not I'm trying to make payment arrangements with the city?" Gamburg asked Nutter. He simply replied: "Just pay your taxes and everything will be fine." The attorney has since made good with the city.
So far, these tactics have netted $4 million in revenue. They plan to see that number grow.
First Published: Jul 30, 2009 12:10 AM EST
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