6 counties choose to adopt income tax

There are 20 comments on the Jul 28, 2007, The Indianapolis Star story titled 6 counties choose to adopt income tax. In it, The Indianapolis Star reports that:

Six Indiana counties have adopted a new local option income tax to help offset the loss of business inventory taxes and lessen the impact of property tax reassessments, according to the Indiana Department of ...

Join the discussion below, or Read more at The Indianapolis Star.

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Jay

San Francisco, CA

#1 Jul 28, 2007
People in Jay County have to pay half a percent of their income to support "economic development" ?

This is pure socialism. Tax people to build what, shopping malls ?

Nobody knows less about economic development than people in government.

What a waste.
NO RESPECT

United States

#2 Jul 28, 2007
This tax is just some more smoke and mirrors that the damm politicains have put together. Just watch if nothing else happens to taxes this will all be forgotten in a short time and the property taxes will still go up. Plus this tax will be on the taxpayer forever.
What a bunch of crap.
These clowns forget who they work for. Or is it the other way around?.

Eliminate property taxes...
Getting Screwed Tax

AOL

#3 Jul 28, 2007
This is nothing more than a friggin way to increase taxes but using the issue of proprty tax offests to get you to buy into it.
Get the whole message folks, these counties are including a tax increase for public safety. In the past. most costs associated with public safety came from your property taxes. Now they're going to use property taxesthe added income tax to offset property tax cuts, plus the added income tax from this public safety protion. In other woprds, increased government spending. No one is talking about reduced spending which is why property taxes are so high.
Those idiots in the legislature have put another one of their boners to us. They passed legislation allow governemtn to increase the income tax to provide property tax relief plu an additional tax increase on income to provide additional government spending so the local governments don't have to increase property taxes.
What a scam! each year those idiots do more to show just how much they think they can by you without you figuring it out.
Carl Hoffman

Clarksville, IN

#4 Jul 28, 2007
Wrong in my opinion no new sales tax until the property tax is completely and totally done away with. Real estate taxes are unfair and prevent anyone from ever owning real estate at any time, you are a life time renter from the state. Sales taxes are by choice and they allow for citizens to choose what and when to buy. The removal of property tax will lower the cost to do business in Indiana, will allow for all to pay taxes. Remove a layer of government that cannot understand the rules they use to assess property. Sales tax at time the property is sold will also make up any loss tax and provide as well provide a fair way to set amount as value is known. At present size is used and that never determines correct value of house or business building. The citizens should and must rise up to prevent the sales taxes being added on now without the removal of the property taxes first. Why is it when government overspends they only look for ways to add on new taxes. Time the property taxes were buried in the property before the citizens start looking for others to put in the unemployment line. The power to tax is the power to destroy and that is what is happening in Indiana. Wake up citizens the government cannot and should not have the final say.
Vote them out and get new ones who understand no taxes without removing property taxes first.

Since: Dec 06

Wilmington, OH

#5 Jul 28, 2007
County income tax lowers property tax? What is the difference citizens still pay the same amount of MORE.
More Taxation

Mount Gilead, OH

#6 Jul 28, 2007
I feel sorry the people who have to live in these Counties. They have been sold out by their elected officials. Contrary to what Daniels says, a local option tax without a direct dollar for dollar reduction in property taxes is nothing more than a new revenue stream to tax them. Its interesting that the dollar for dollar reduction in property taxes never recieved a fair hearing. The people in these counties we end up paying way more than the rest of us with no accountablilty now. Remember that every vote counts next election and make sure yours is heard.
Average Joe

South Vienna, OH

#7 Jul 28, 2007
Why should we abolish the property tax system?

There are a number of good reasons to abolish the Property tax system which include:

It is a fraught with disparity and subjectivity. The complexity of the system does not allow local assessors to comply with rules. Therefore, assessments are educated guesses at best and often the assessors hire contractors to complete the work since the assessors have neither the skills or time to complete the reassessments according to the law.

It is an additional cost that taxpayers need to bear; in Marion County the budget for the assessors offices is over $8 million annually. I have not been able to locate the cost statewide, but would conservatively say it is upward of $25 million annually. We already have both sales and income tax systems, which work!

A number of people are saying that the Property tax should be replaced with either income tax, sales tax or a combination of the two taxes. Is this truly feasible?

I’ve researched this idea, and below are some facts:

The 2006 property tax levy in Indiana was $7,850 million – this was report by the State Dept. of Local Government Finance and can be viewed at: http://www.in.gov/dlgf/rates/levies_raw_july_...

The Sales tax (rate of 6.0%) collected in 2006 was $5,337 million
The individual Income tax collected (rate of 3.4%) in 2006 was $4,382 million
The corporate Income tax collected (rate of 8.5%) in 2006 was $796 million

This can be verified at: http://www.in.gov/dor/reference/report/06pdf/...

In summary, between sales, property , and income taxes the government collects $18.3 billion.

Therefore, in order to replace the Property tax with either an increase in Sales tax or Income tax it would require the following:

– Sales tax would need to be increased from a 6% rate to a 15% rate

– Or Income tax would need to increase from a 3.4% rate to 9.1% rate for individuals and from a 8.5% rate to a 14.2% rate for corporations.

Both of these options are quite drastic, and could drive citizens and businesses from the state. Therefore, I started looking into other options, which included cutting spending.

By cutting spending 5.0% on $18.3 billion, and raising the rates on sales and income taxes 3 percentage points Property Taxes could be eliminated!

Now how do we go about eliminating nearly $900 million in spending?

First we eliminate all the assessors, and the related systems around the calculating, billing and collecting Property taxes. This should get us almost $50 million if done correctly.

Next, we move to real consolidation – consolidate the schools, eliminate the townships, and restructure public assistance.

If the politician work half as hard on eliminating spending, as they do raising taxes this issue could be effectively addressed.

We need to continue the pressure, and demand spending cuts, and the elimination of the Property Tax system.
Dennis

Waverly, FL

#8 Jul 28, 2007
TAX, TAX, TAX, Time for the reinactment of the BOSTON TEA PARTY
dogthatbitmitch

Louisville, KY

#9 Jul 28, 2007
Impeach Mitch Daniels, Cheney, and Bush before we are all broke.
Carter

United States

#10 Jul 28, 2007
More Taxation wrote:
I feel sorry the people who have to live in these Counties. They have been sold out by their elected officials. Contrary to what Daniels says, a local option tax without a direct dollar for dollar reduction in property taxes is nothing more than a new revenue stream to tax them. Its interesting that the dollar for dollar reduction in property taxes never recieved a fair hearing. The people in these counties we end up paying way more than the rest of us with no accountablilty now. Remember that every vote counts next election and make sure yours is heard.
You are quite correct. Even with a direct dollar for dollar replacement of income taxes for property taxes, there is absolutely no less expense for the homeowner. I have never seen a tax that was imposed repealed or reduced. As has been said in many of the posts, the problem has nothing to do with what you call the tax, it is still a tax. It has everything to do with spending. Until that becomes the subject of journalistic investigation, and protests and government inquiries, politicians will continue the smoke and mirrors to fool people into believing that their best interests are in mind when these various ploys to take our money are imposed without a vote from the payer. I believe that the consequences for their behavior will be signifigantly negative for the health of the state and hopefully for the future of the responsible tax and spend mentalities.
NO RESPECT

United States

#11 Jul 28, 2007
Average Joe, I bet it didnt take you 3 months over a 30-40 years to come up with that formulla. Plus the millions of dollars and perks these clowns get.
They dont want to do that. They wouldnt have the tax whip over you and I to control us.

ELIMINATE PROPERTY TAXES.
REDUCE GOVERMENT...
Pastor Fagoli

Indianapolis, IN

#12 Jul 28, 2007
Dear friends, please remember to VOTE AGAINST ALL INCUMBENTS.
Rob

Indianapolis, IN

#13 Jul 28, 2007
These politicians that we now have will try anything to keep and or make new taxes for the people to pay. For some reason they cannot get it through their heads that we want and need CHANGE,get rid of these taxes and the politicians who want them.As for gov. Mitch I dont know if he will ever wake up and dont turn your back on ol Bart. And for the rest of the elected officles . The people of Indiana can see a snow job.Time for Indiana politicians to wake up or be GONE....
Rob

Indianapolis, IN

#14 Jul 28, 2007
Average Joe wrote:
Why should we abolish the property tax system?
There are a number of good reasons to abolish the Property tax system which include:
It is a fraught with disparity and subjectivity. The complexity of the system does not allow local assessors to comply with rules. Therefore, assessments are educated guesses at best and often the assessors hire contractors to complete the work since the assessors have neither the skills or time to complete the reassessments according to the law.
It is an additional cost that taxpayers need to bear; in Marion County the budget for the assessors offices is over $8 million annually. I have not been able to locate the cost statewide, but would conservatively say it is upward of $25 million annually. We already have both sales and income tax systems, which work!
A number of people are saying that the Property tax should be replaced with either income tax, sales tax or a combination of the two taxes. Is this truly feasible?
I’ve researched this idea, and below are some facts:
The 2006 property tax levy in Indiana was $7,850 million – this was report by the State Dept. of Local Government Finance and can be viewed at: http://www.in.gov/dlgf/rates/levies_raw_july_...
The Sales tax (rate of 6.0%) collected in 2006 was $5,337 million
The individual Income tax collected (rate of 3.4%) in 2006 was $4,382 million
The corporate Income tax collected (rate of 8.5%) in 2006 was $796 million
This can be verified at: http://www.in.gov/dor/reference/report/06pdf/...
In summary, between sales, property , and income taxes the government collects $18.3 billion.
Therefore, in order to replace the Property tax with either an increase in Sales tax or Income tax it would require the following:
– Sales tax would need to be increased from a 6% rate to a 15% rate
– Or Income tax would need to increase from a 3.4% rate to 9.1% rate for individuals and from a 8.5% rate to a 14.2% rate for corporations.
Both of these options are quite drastic, and could drive citizens and businesses from the state. Therefore, I started looking into other options, which included cutting spending.
By cutting spending 5.0% on $18.3 billion, and raising the rates on sales and income taxes 3 percentage points Property Taxes could be eliminated!
Now how do we go about eliminating nearly $900 million in spending?
First we eliminate all the assessors, and the related systems around the calculating, billing and collecting Property taxes. This should get us almost $50 million if done correctly.
Next, we move to real consolidation – consolidate the schools, eliminate the townships, and restructure public assistance.
If the politician work half as hard on eliminating spending, as they do raising taxes this issue could be effectively addressed.
We need to continue the pressure, and demand spending cuts, and the elimination of the Property Tax system.
I am in hopes that every-one reads this and Indiana policitions,if they do read this can at least understand it. Might be a bit too much for their ( spending ) brains....

Since: Jul 07

Indianapolis

#15 Jul 28, 2007
dogthatbitmitch wrote:
Impeach Mitch Daniels, Cheney, and Bush before we are all broke.
Don't forget BART!!!

Since: Jul 07

Eastern Indiana

#16 Jul 28, 2007
Just how long will it before local income taxes exceed what we pay in state income taxes? And property tax will still continue to grow unabated because nothing addresses school spending in all of this.

We need a moratorium on spending - FREEZE ALL BUDGETS and assessments for a 2 year period of time in order to really overhaul our system. Whether to get rid of property tax forever and replace it with whatever - out of control spending is the problem with all our units of government and schools. Don't waste the time and money for the next two years gaming the budgets to screw taxpayers even more - use that time and effort to really cleanup this mess.
wayne

Sellersburg, IN

#17 Jul 28, 2007
Average Joe wrote:
Why should we abolish the property tax system?
There are a number of good reasons to abolish the Property tax system which include:
It is a fraught with disparity and subjectivity. The complexity of the system does not allow local assessors to comply with rules.
If the politician work half as hard on eliminating spending, as they do raising taxes this issue could be effectively addressed.
We need to continue the pressure, and demand spending cuts, and the elimination of the Property Tax system.
sounds great! when are you and your supporters going to run for office so it WILL be approved?

oh, by the way, we ALL know that property taxes pay for local government spending. yet, the locals are blaming the state for this fiasco. the state in turn is blaming the locals. republicans are blaming democrats and vice-versa. i've yet to see a politician not point a finger at someone and say, "it's their fault".
if yo place all your eggs in one basket (i.e., sales and income taxes) and they need to be increased like the property taxes, who will know the real cause of the problem? talk about finger pointing and the blame game!

look around, there are a multitude of reason this fiasco has occurred. 1. the apathy of the residents of Indiana, 2. the lack of accountability for all levels of governemnt, 3. the parisan politics, 4. the egos of the politicians, 5. the mindset of the politicians, 6. the wealth the politicians gain in office, 7. the lack of a coordinating body for residential and business growth, 8. the lack of a realiable clearing house for financial information within the state, 9. the lack of line item budgets that are more detailed, 10. the loss of a "sense of community" by the residents of Indiana, to name several.
#1 and # 10, all by theirselves, have had the most influence in allowing this fiasco to become reality. when people don't seek out the truth for who they're voting for, they get politicians. when people stop being involved in their community, they turn over all their responsibilities and obligations to the government and the programs that the government creates to continue to provide that service.
people must get reintroduced to their communities. walk through a typical neighborhood in the doughnut counties and i'll bet you won't find 10% of the people know more than the neighbors next door. worse yet, they don't know much about the neighbors next door. this isn't being caused by the size of the neighborhoods, it because the people have abandoned their responsibilities to one another and turned it over to the government ot take care of.
there's an old phrase in the computer, "garbage in, garbage out". we're living the "garbage out" phase becuase of our long term pattern of "garbage in".
think of the money that could be saved if everyone took some responsibility for the needs within their communities. the schools continue to add personnel that used to be Moms and Dads. the municipality has to add life gaurds because the parents won't go to the pool with them. we noe have to build multi-million dollar football stadiums because football fields just aren't "good enough" to play on anymore.
get out of those easy chairs and add something to your community's "people wealth". you'll feel better, your health will improve, and you'll save a lot of money by reducing the size of your government.

Since: Jul 07

Eastern Indiana

#18 Jul 28, 2007
Oh and I almost forgot to add - Drain the Swamp!

Yes a few "good" ones will loose their jobs - but if they are really "good" then they would understand that a housecleaning needs to be done and unfortunately the masses (with their public educations) have a difficult time sorting the good from the bad and if we are going to have a revolution we need to keep it simple. DRAIN THE SWAMP!
Local Boy

United States

#19 Jul 28, 2007
Property tax is controlled locally. All other taxes are controlled at state and federal levels. Even the local income tax is collected by the state then the county must fight for their dollars. If we eliminate property tax we put the state in control of education. Think about that. The state needs no more control. Put the power to the lowest level, not the highest. If this idea is good why is COIT being auditted each year and the counties always coming up short.
Consider the stadium tax debate. The governor promised the surrounding counties all their COIT money back in exchange for this stadium tax. Blackmail plain and simple. Just like the federals do to the states. You can have your own back if you do what I want.
Way too much education, not enough common sense
wayne

Sellersburg, IN

#20 Jul 28, 2007
Carter wrote:
<quoted text>You are quite correct. Even with a direct dollar for dollar replacement of income taxes for property taxes, there is absolutely no less expense for the homeowner. I have never seen a tax that was imposed repealed or reduced. As has been said in many of the posts, the problem has nothing to do with what you call the tax, it is still a tax. It has everything to do with spending. Until that becomes the subject of journalistic investigation, and protests and government inquiries, politicians will continue the smoke and mirrors to fool people into believing that their best interests are in mind when these various ploys to take our money are imposed without a vote from the payer. I believe that the consequences for their behavior will be signifigantly negative for the health of the state and hopefully for the future of the responsible tax and spend mentalities.
how about the consequences of your behavior? have you, in the last few years, contacted any elected representative, on any level of government, on a regular basis? if you reply is, no, your behavior has been part of the root cause for this fiasco.
we all appreciate it.

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