Via the Indy Star…

In his address tonight to the City-County Council, Mayor Bart Peterson discussed public safety and property tax — not budget cuts he ordered two weeks ago.
 
…

His budget-cut presentation was canceled because department heads are still working on the cuts, said Margie Smith-Simmons, Peterson’s spokeswoman.

Deputy Mayor Steve Campbell said Peterson focus on how he will bolster public safety with a $90 million spending increase that came from a 65 percent increase in the county income tax at the last council meeting.

…

However, property taxes could still increase because schools, which account for about half of all property taxes, were not required to freeze property tax spending.

…

School and child welfare spending were two of the key reasons property taxes jumped 34 percent this year, sparking a storm of tax protests from citizens.

“I think the public generally expects budget to go up a few percent with inflation,” Campbell said.

OK, could someone please give Mr. Deputy Mayor a simple math lesson related to inflation? 

Something along these lines (in nice round numbers for illustrative purposes):

• You earn $100
• You are taxed 10%
• You take home $90
• The government takes $10 in taxes

Along comes a 10% increase in your income due to inflation, thus:

• You earn $110
• You are still taxed 10%
• You take home $99
• The government takes $11 in taxes

Yes budgets do go up with inflation, but they should stay on course with inflation and not excessively exceed it.  In our current case we’re really talking about tax increases, not inflation.  Yes, no one likes to pay taxes, but if it were on a simple 1:1 scale (and the people actually received raises) there wouldn’t be such an uproar. 

The bottom line is that the government has budgeted for more than they bring in and someone has to pay for it.  So of course there’s going to be public outcry since once a tax is in place it’s most likely not going away, even the “temporary” taxes.  Anyway, I’m curious as to what will be said once the budget cuts are finalized.

Technorati Tags: bart peterson, indiana, indy star, marion county, indianapolis, taxes

Popularity: 78% [?]

Share This

Indiana Tea Party, 11am, July 28, 2007 at the Broad Ripple Canal

More information.

Popularity: 71% [?]

Share This

Here’s a common case of cause-and-effect…

Marion County - This taxing time is giving Marion County schools a costly economics lesson. Delays and confusion over property taxes has them short on cash and looking to borrow millions of dollars.

Freezing property taxes and delaying payment deadlines is creating a financial upheaval for Marion County’s Schools. Tax money needed to pay teachers, operating costs and construction bills, already weeks late, will arrive even later. It will total tens of millions of dollars less than schools counted on.

While no one likes tax increases, do you think that tax increases would help student performance? And do you think that there should be restrictions on the use of the additional funds?

Read the full story at WTHR.

Popularity: 34% [?]

Share This

Via the IndyStar…

Amid interruptions, chants of “no new taxes” and an emotional debate, the City-County Council increased the county income tax by 65 percent for Mayor Bart Peterson’s $90 million crime-fighting plan.

The council voted 15-13 to pass the proposal. Two Democrats opposed the plan, and two Republicans joined 13 Democrats to support it. Republican Isaac Randolph cited a conflict of interest and abstained from voting.

The new rate will take effect Oct. 1 and will apply only to people who live in Marion County.

Read the rest of the story.

Popularity: 23% [?]

Share This