When the economy is in bad shape, government units often suffer too. The tax base dries up, and government has difficulty finding funding to support its staffing and other expenses.
Add to this mix a new tax formula in Indiana that provides less property tax revenue to local government, and counties, cities and towns are thrown into crisis.
They have five choices:
A. Raise taxes
B. Use resources more efficiently
C. Cut services
D. Find other sources of revenue
E. Some combination of the four
Too often, government turns to choice A without fully exhausting the other options. That appears to be happening in Madison County, where the city of Anderson has voted to add 0.5 percent to the county option income tax. That would bring the total COIT rate to 1.75 percent, adding $200 to the annual tax bill of a person who earns $40,000 and making that person’s bill $700 for the year.
Councilmen Rodney Chamberlain and Art Pepelea, to their credit, voted against the increase.
Has the City of Anderson already taken measures to use resources more efficiently and to reduce services? Yes. Has it looked for other sources of revenue? Yes (a user fee for trash pickup has been instituted).
Has it enacted every potential cut to reduce resources to account for a shrinking population and to make sure that every position in city government is absolutely essential? Not by a long shot.
There are still those in city government who act as if their first responsibility is to city employees. It’s not. Their first and foremost responsibility is to the citizens of the city, to keep taxes low and to run lean while providing essential services. Government does not exist to provide jobs; it exists to serve the people with the best possible efficiency.
Raising the tax rate is almost always a bad idea. It’s a particularly bad idea right now, when the citizens of the city are suffering through a bad economy right along with the city itself. The city owes it to those residents to hold the line on taxes.
Now, there’s still hope. The City of Anderson needs Madison County or a combination of other local government entities to follow its lead and approve the COIT increase for the increase to take effect.
County Council will hold a public hearing at 7 p.m. Monday, Oct. 26, to discuss the potential COIT increase (the site of the meeting has not yet been announced). No doubt, county employees who are concerned about their jobs will show up to speak in favor of it. A strong showing of other citizens who are opposed could influence council’s decision, prompting it to exhaust all other options to make up its budget shortfall.
This is often the way democracy works: Those in government push for more money, and the citizenship fights back. Surely, residents of Madison County didn’t battle so long and hard against property tax inequities only to see their gains lost to an increase in local income tax.
Editorials
Editorial: Rise up against local tax increase
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Editorial: Memorial Day helps put face on wounded warriors
This is the perfect weekend to thank a veteran, an active duty service member or a wounded warrior for his or her service. Our positive, encouraging response goes a long way in defining our society.
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Editorial: Honor those who fought, and celebrate our freedom
This weekend, keep in mind the reason for Memorial Day — to remember those who have been so important in our lives, especially those who made the supreme sacrifice in military service.
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Editorial: Governor candidates offer conservatism, moderation
The jockeying for position has begun in what is basically a two-horse gubernatorial race. Each offers voters a legitimate option. The November outcome may offer a simple referendum on the mindset of voters: Are they most persuaded by Mike Pence’s conservatism or by John Gregg’s moderation?
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Editorial: Keep up the chorus against the landfill
Occupy Anderson has joined the ever-growing chorus against the proposed Mallard Lake landfill. Sam Mudd, a member of Occupy, is taking his studies on how the landfill might pollute Anderson’s water to areas of the county to drum up support against the landfill.
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Editorial: Find a buyer for former school or tear it down
If a buyer wants the former Pendleton Heights Middle School, fine, but put no more taxpayer money into it.
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Editorial: Libraries must adapt to serve communities
Certainly, the Friends of the Anderson Public Library needs space to store and sell used books, records, DVDs and other material. But library supporters and staff must be flexible in this ever-changing world to keep public facilities relevant.
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You Said It: About Walking Men, the Queen of Disco and settled lawsuits
Each Monday, The Herald Bulletin publishes “You Said It,” a compilation of reader comments from www.theheraldbulletin.com.
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Editorial: Ockomon-Spencer saga hurt city's reputation
Wednesday, May 16, was a sad day for Anderson taxpayers forced to pay a $128,000 bill that ends a saga that never should have started
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Editorial: It's Pendleton's time to shine this weekend
The residents of Pendleton can be a little prouder of themselves today. Two events capture the community spirit that makes the town one of the gems in our region.
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Editorial: Little 500 Festival, local events heating up Saturday
Like the Indianapolis 500, Anderson Speedway’s Little 500 should be on the bucket list for folks living in the Madison County area.
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