Committee Suggests City Seek Income Tax Increase
Monday, March 9, 2009 7:23 AM
Updated: Monday, March 9, 2009 5:14 PM
In addition to raising the city's income tax rate, the group also suggested charging residents for trash pickup and adding more red light cameras, 10TV's Cara Connelly reported.
Any move to raise the income tax would need approval from city council and voters. The earliest such a measure would appear on the ballot would likely be in November.
According to the committee's report, raising the income tax rate would bring the city an extra $90-$100 million each year, 10TV News reported.
The group also proposed that residents be charged between $12.19 and $18.24 each month for refuse pickup. Such a fee would generate more than $40 million a year.
Robert Howarth, chairman of the advisory committee, said he thinks the recommendations were the fairest way to generate revenues.
"The income tax in the city of Columbus is paid by people who make money," Howarth said. "It's also paid by people who don't live in Columbus, but come into Columbus and enjoy the benefits that income tax dollars provide. It's a progressive income tax. You pay more if you make more."
The recession has already put a dent in the city budget, prompting leaders to cut nearly $100 million in spending, slash 150 jobs and close nearly a dozen rec centers across the city. Still, not everyone was sold on the idea of increasing the income tax rate.
David Hansen with The Buckeye Institute said raising the income tax rate would have a negative impact on city businesses.
"To increase the income tax is probably the worst thing to do," Hansen said. "It is sending a message to entrepreneurs and risk takers that Columbus is a bad place to be because the more you earn the less you get to keep of it."
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