February 22, 2009
The Cincinnati Enquirer
Dear editor:
Unfortunately, the West Clermont
Board of Education unanimously voted to place a 1 percent income tax on the
March 4, 2008 ballot. Although the Board members are good people, mean well, and
are performing a thankless task, they have made a mistake by moving forward with
this.
A school income tax will shift
the primary burden of funding from all property owners (including businesses) to
middle class wage earners. The very rich will be exempt because income from
interest, dividends, and capital gains are not considered “earned income”
and therefore not subject to the additional 1 percent tax. Business owners will
contribute less to school funding as current property tax levies start to roll
off.
The bottom line is that the
income tax will shift the primary burden of taxation from all residential and
business properties and concentrate the burden on middle class wage earners who
live in West Clermont. No reciprocity is available regardless of where we work.
And no one living outside of West Clermont will be subject to the tax even if
they work here.
Taxes, of any kind, are punitive
and widely despised:
- Income taxes discourage production
- Sales taxes discourage consumption
- Property taxes depress real estate values
- Intangible taxes (stocks, bonds, capital gains) discourage
investment
The income tax is the most
destructive of these. Lack of a local income tax was one of the key reasons that
I chose to move to this community. Additionally, if a local income tax becomes
law, high income people will be discouraged from moving into this community. And
those considering leaving will be given a push. West Clermont does not need more
low income people demanding more and more community resources. We need to
encourage high income people to move here, not drive them away.
I understand the need to fund the
schools and strong schools foster a strong community. Being as a school system
can’t enact a sales tax, the property tax is the best option. Property taxes
are paid by everybody living in the community. (Landlords pass on the tax as
part of the rent.) An income tax would shift the burden of school funding to
only those residents with earned income. West Clermont needs more residents with
earned income, not fewer.
John Becker