Writer explains ‘no’ vote on levy
Here’s why I am voting ‘no’ for the Walnut Township school levy. The replacement levy changes the income tax base from the traditional tax base to just earned income. That means the tax rate will increase from 1.25% to 1.75%.
Income that is taxed under the current traditional tax base includes: wages, salaries, tips, interest, dividends, unemployment compensation, self-employment, pensions, annuities, IRA distributions, capital gains, and alimony received. Social Security benefits, disability, welfare benefits, child support, and workers compensation benefits have never been taxed and will not be taxed under the new system.
The earned income tax base will only tax wages, salaries, tips and self-employment income; it will exempt interest, dividends, lottery winnings, capital gains and pensions. Due to these exemptions, the rate increases to 1.75% to collect the same amount of money. Thus, fewer people will be paying more to support the schools.
I would support renewing the current 1.25% tax, but I do not believe that Walnut Township workers should be penalized for having a job; the 0.50% tax increase is a new “working tax”.