This paper examines the fiscal relationship between Philadelphia and its surrounding suburbs, drawing on Robert P. Inman's 2003 analysis of urban policy. It explores the challenge older cities face in funding local government services when residents migrate to surrounding communities. The paper argues that because suburbs depend on the central city for jobs, schooling, and entertainment, they share a stake in its financial health. It also highlights the economic link between a city's condition and suburban property values, concluding that suburbs should bear a portion of the central city's costs.
Inman (2003) discusses the difficult position that older cities face regarding local policy and the upkeep of the central city. In the United States, it is the responsibility of local governments to pay for repairs, local government jobs, and other localized demands on public funds. Taxes are paid by the citizens of a community: some go to state and federal governments, and the rest go to the city (Inman 2003, p. 24). This question becomes far more complicated when dealing with a large metropolitan area like Philadelphia.
Citizens of Philadelphia pay money into their city's government. Large cities are surrounded by smaller towns and suburbs. Although these are somewhat independent communities, they are also dependent on the metropolis for schooling, jobs, entertainment, and other services (Inman 2003, p. 26). The larger city often demands money from the suburbs in the form of taxes in exchange for providing goods and services to those surrounding communities.
"Residents resist paying taxes beyond city limits"
"Urban decay reduces suburban property values too"
Increased cost of living and economic downturn are sending people into debt, and many of them are losing homes, forcing them to move to other places where the cost of living is not as high. Living in close proximity gives these suburbs the benefits of the larger city; therefore, they should have to absorb some of its costs as well. As fiscal federalism scholarship suggests, the responsibility for sustaining shared urban resources must be distributed among all those who benefit from them.
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