Sunday, October 26, 2008

10. Pledges cover most, but not all.

There have been pledges from numerous supporters of continuing the merger discussion that retirees in the city and township will not see an increase in their tax burden if there is a merger. They make this pledge because they think that retirement income is not subject to the city's income tax. But did you know that one of the homeowners that was recently annexed in to the city is a retiree who will have to pay income tax on his retirement income? It's true. So maybe the merger proponents meant 'most' retirees won't see an increase in their tax burden if there is a merger.

There have also been pledges that 'most' township residents will receive a tax cut. But what does this mean? Do they consider a decrease in property tax while that person's income tax increases a 'tax cut'? And what is most? 'Most' implies that some will not get a tax cut, and in this case will in fact see a significant raise in their taxes

But is it really fair to throw your fellow retiree, your neighbor, under the bus when it comes to higher taxes just so you can save a little bit? And what happens if all of those people who will end up paying higher taxes because of this merger decide to move … who is left to pay for the higher cost of government? (Hint: all of those who just got a tax cut - you'll have to start paying more.)