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This tax, known popularly as the "mobility tax", or the "MTA tax", is intended to provide funds for the Metropolitan Transportation Authority, which transports many of the region's commuters. [8] Philadelphia has a 3.924% wage tax on residents and a 3.495% tax on non-residents for wages earned in the city as of August 2013. [9]
The tax department was formally created on January 1, 1927, but the first signs of the department date to 1859. The original intent was to find a way (a mathematical formula) to distribute tax revenue to individual counties in New York State.
[20] [21] In July 2017, the Seattle City Council approved an income tax on Seattle residents, making the city the only one in the state with an income tax, [22] but it was ruled unconstitutional by the King County Superior Court. [23] The Court of Appeals upheld that ruling [24] and the Washington Supreme Court declined to hear the case. [25]
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Foreign non-resident persons are taxed only on income from U.S. sources or from a U.S. business. Tax on foreign non-resident persons on non-business income is at 30% of the gross income, but reduced under many tax treaties. These brackets are the taxable income plus the standard deduction for a joint return. That deduction is the first bracket.
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