$50 for every $10,000 you earn

I've put off writing about this because it is such an depressing and aggravating prospect: the West Marlborough Township supervisors are seriously considering instituting a half-percent earned income tax.
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 that the Whip Tavern mars their quality of life).
Worsening the situation is a "huge dropoff" in income from the real-estate transfer tax, Supervisor Bill Wylie explained at the June 5 meeting.
Although previously the supervisors had considered instituting the tax so that the township could take back control of some roads now owned by the state, the fiscal situation has worsened to the point that supervisors have had to borrow from other accounts, like the equipment fund, just to keep township checks from bouncing. The new tax would be expected to raise $110,000 to $120,000 a year.
At the township meeting, Gus Brown (one of the "Springdell 8") asked why the township needed the additional money. Where would the revenues be going?
 "It's a question of paying the bills," responded Mr. Wylie. "If expenses drop, we can tailor the amount of the tax."
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.
Mr. Wylie said instituting the tax is "a complicated process," and the supervisors agreed to more forward with the procedure. Under state law a public hearing would have to be held before any action is taken.
Rest assured, I will keep you posted.

For comparison, here are the real-estate and the earned income tax rates in neighboring townships:

                                       Real Estate (mills)            Earned Income Tax (%)
East Fallowfield                      0                                    0.50
Highland                               2.3                                   1.00
Londonderry                         0                                     0.75
London Grove                     1.24                                 0.75
New Garden                        0.75                                 0.625
Kennett Twp.                       0.40                                 0.75
East Marlborough                1.43                                  0.0
Newlin                                 0.75                                 0.50
West Marlborough               1.70                                  0.0