Despite high unemployment. Despite lost wages. Despite devalued investments. Despite a harsh economy that has brought real suffering to the community.
Despite all of these factors and many others that screamed for tax cuts rather than tax increases, the city councils of Anderson and Alexandria and the Madison County Council have instituted an income tax increase for the wage earners of the county.
For those lucky enough to be earning a salary of $40,000, the County Option Income Tax increase from 1.25 percent to 1.75 percent will cost an additional $200 a year, bringing your COIT payment to $700 for the year.
For the increase to pass, councils representing more than half of the 100 votes of the County Income Tax Council had to vote in favor of it. Anderson and Alexandria had voted for the increase earlier, and when county council approved it Monday, the increase was passed for the entire county.
No matter where you live in the county, the COIT increase will apply to your income. Whether you live in Pendleton or Lapel or Frankton or Elwood, you have the councils of Anderson, Alexandria and the county itself to thank for taking your hard-earned money out of your pocket.
Why did they do it? Well, the State Legislature voted in 2008 to cap property taxes, meaning that most local government units would have less money coming from the state than previously. The Legislature essentially jumped from a boiling furor over property value reassessment by saying to local government: “You want more money? Then you raise county income taxes and face the public outcry.”
And that’s just what’s happening. The three government units that passed the COIT increase were facing, collectively, about $12 million in projected budget shortfalls. Each of the three did make budget cuts, but none of the three went far enough. Each was seduced by the prospect of more revenue from COIT. Each decided to protect some government jobs at taxpayer expense.
The increase passed county council by a 4-3 vote. Bill Savage, Larry Higgins, Buddy Patterson and John Bostic voted in favor. Larry Crenshaw, Mike Phipps and Gary Gustin were opposed.
Anderson councilmen Art Pepelea and Rodney Chamberlain had voted against the increase, but were overwhelmed 7-2 by the other council members: Mike Welch, Donna Davis, Pam Jones, Ollie Dixon, David Eicks, Joe Newman and Rick Muir.
In Alexandria, Roger Cuneo, Kevin Garner, Bob Stinson, Eric Schmidt, Pam Luck and John Dockrey were in favor of the increase. Carol Walker cast the lone opposing vote.
This income tax increase is painful, especially during a recession. If Madison County residents could rest assured that it wouldn’t be followed by more hikes, perhaps they could stomach it. However, future increases seem inevitable, given government’s voracious appetite for taxpayer money.
Even now, the Indiana Association of Cities and Towns is laying plans to push the Legislature for more income taxing powers for municipalities.
Enough is enough. No new taxes. No tax increases.
Editorials
Editorial: Timing all wrong for COIT increase
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Editorial: Honor those who fought, and celebrate our freedom
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Editorial: Governor candidates offer conservatism, moderation
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Editorial: Keep up the chorus against the landfill
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Editorial: Find a buyer for former school or tear it down
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Editorial: Libraries must adapt to serve communities
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You Said It: About Walking Men, the Queen of Disco and settled lawsuits
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Editorial: Ockomon-Spencer saga hurt city's reputation
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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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