THEY JUST DON'T GET IT!
No matter how many times the voters have emphatically said NO, our local politicians just keep asking us to double Peninsula's income tax from 1% to 2%. This time they have come up with a new wrinkle. We are being led to believe that if we pass the levy this time, most residents will not pay additional tax. Instead it will mostly be paid by non-residents who work in the village. How could this be?
If we vote to raise Peninsula's tax RATE to 2%, it is my understanding that Council has promised to increase our tax CREDIT so we don't have to pay additional taxes. Sounds good, right? We vote higher taxes and make those who work here foot the bill.
Let me explain two concepts you need to know regarding city income taxes. While the voters control the local tax RATE, the politicians control the tax CREDIT you get for taxes you pay to the city where you work.
So if you now work in another city with a 2% tax RATE, you currently must pay Peninsula an additional .5% tax due to the current tax CREDIT.
But keep in mind Council could decide at any time to abolish that credit and you would have to pay Peninsula the full 1% tax. Or if we vote to increase the RATE, a full 2% tax. Do you think that would never happen? I never thought we would ever have to pay a former police chief to NOT come to work.
| John Dooley |