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: New 911 consolidation is good for county
When it comes to emergencies, a fast and proper response is sometimes the difference between life and death. Therefore it is important for 911 services to be coordinated for the best response time. It’s even better if those services are consolidated with one location fielding calls from multiple areas.
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Editorial: On Valentine’s Day, indulge in selfishness of volunteering
In the final analysis, we’re all selfish beings. Everything we do, at its core, is motivated by what is good for us.
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You Said It: About roundabouts, Mayor Smith’s firings, recycling, State of City address
The bottom line in Mayor Kevin Smith’s State of the City address Tuesday during the Anderson Rotary Club’s luncheon at Anderson Country Club was simple: To attract investment, you have to make investments. (Article published Feb. 4.)
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Editorial: Firings show inability to turn foes into friends
Politics is a double-edged sword.
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Editorial: Help celebrate city's strong black history
Many times we overlook the small achievements of residents long gone who made a better Anderson for those of us alive today. There is no better time to recognize and cherish those stories than during Black History Month.
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Editorial: Madison County needs vision for future tourism
Slot machines, gospel music, a beautiful state park and candy are all thriving as destination sites. Now is the time to explore a way to connect these valuable attractions and encourage new ideas.
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Editorial: AHS grad rates moving up, must be pushed ever higher
A diploma is a must, but it has to mean something. Anderson High School must do this the right way, not cutting corners and passing students through classes, but making them accountable for learning the subject matter.
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Editorial: With changes to program, why not begin recycling?
The public has to understand the importance of recycling aluminum and steel cans, cardboard, glass, newspapers and certain plastics. Besides minimizing a community’s waste, recycling saves energy, natural resources and the environment.
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Editorial: Reality returns after Super Bowl mania
While we loved what the Super Bowl did for our reputation, it’s time to get back to the real world. Let’s recap the lost week.
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You Said It: About contract, 'Teen Mom,' State of the City
Each Monday, The Herald Bulletin publishes “You Said It,” a compilation of reader comments from www.theheraldbulletin.com, coupled with responses by the newspaper’s editorial board.
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Editorial: New 911 consolidation is good for county
