Friday, May 4, 2012

Earned income tax

Leave it to my fellow West Marlborough residents to find creative solutions to financial woes.
As I've reported before, the township is in dire fiscal shape because of a series of unexpected zoning hearings, for which it has had to fork out upwards of $70,000 in legal and engineering fees (most of the challenges were brought by the small group of Springdell residents -- "the Springdell 8" -- who contend the Whip Tavern mars their quality of life). To prevent township checks from bouncing, the supervisors have had to borrow from other accounts and are now considering imposing a one-half percent earned income tax, which they estimate would raise $110,000 to $120,000 a year.
Who would pay the tax? People who live and work in West Marlborough (your blogger included) or who live in West Marlborough and work in a community that doesn't have an earned income tax. Many residents already pay the tax at their workplace, and if the tax were enacted, those residents wouldn't see a tax increase; rather, the money they already pay would come back to West Marlborough Township rather than staying in the municipality where they work.
One resident asked if the supervisors had considered any other taxes, such as a gross receipts tax or an amusement tax.
"No, we haven't," responded supervisor Bill Wylie, "because they don't represent much of a source of revenue."
Another asked if a tax was really the way to go, because the sky-high expenses might not be ongoing if the Whip situation is resolved. Would the tax be repealed if the money was no longer needed? he asked.
Mr. Wylie said professional expenses are impossible to budget for, and the township also needs to pay back the accounts it had borrowed from. "You don't have to worry about us socking money away," he said.
Another resident suggested asking citizens to make voluntary contributions to the township rather than having to pay an ongoing tax. Mr. Wylie raised a problem with that: what would happen if not enough money was raised voluntarily, and a tax had to be imposed anyway?

The best idea I heard was that we hold a series of fundraisers, with money going to pay the township's expenses.
Where would these parties be held?
Why, where else: at the Whip.

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