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: 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: Smith speech shows mayor aiming high
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.
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Editorial: Bill offered by state Senate honors Fourth Amendment
No law is ever going to rid domestic situations of their subjectivity, but people have a right to be secure in their homes, and the police need to keep this in mind when they come knocking.
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Editorial: Burton's retirement was overdue
Dan Burton has been a fixture in Indiana politics for nearly a half century. A staunch Republican, Burton made waves in the Statehouse and in Congress, but now it’s over. Burton recently announced his retirement and will not seek re-election in Indiana’s District 5.
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Editorial: Tempered excitement for call-center jobs is prudent
Immediately after city officials announced the location of a new call center in Anderson on Jan. 25, the “Yeah, buts ...” started.
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Editorial: Trigger law would give parents too much power
If the state is going to push for charter schools, it has to be a measured action with plenty of debate. There is a reason why the term trigger-happy has negative connotations. It means a knee-jerk reaction with little thought.
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You Said It: About Grandview, new Colts coach and the APA incident
The Anderson Parks board has created a committee to study options for Grandview Golf Course and its restaurant. (Article published Jan. 17.)
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