William Larsen

What is wrong with this statement?

Income Tax (COIT), one of three local option income taxes available to counties under State statutes in Indiana, as part of a tax reform package. Also, available to counties under Indiana law is the County Adjusted Gross Income Tax (CAGIT) and the County Economic Development Income Tax (CEDIT). The Common Council controlled enactment of the tax at that time based on the fact that the City comprised 58.5% of the population of Allen County, even though the Allen County COIT Council actually enacts the tax. The tax reform effort involved two primary strategies.

• One, it is appropriate to tax those citizens who live outside the City but use City services such as roads and streets, fire protection, and police protection while they work in Fort Wayne. To a modest extent, COIT accomplishes that.

• Two, adding a different tax base into the picture, income as opposed to property, broadens and distributes the total tax burden in a fairer manner. COIT accomplishes that as well.

What is wrong with this statement “it is appropriate to tax those citizens who live outside the City but use City services such as roads and streets, fire protection, and police protection while they work in Fort Wayne?”

I interpret this to mean;

• If you pass through the city of Fort Wayne, you should pay to use the roads.

• If you go out to eat, go to a movie, spend money at the malls or spend money anywhere within the city of Fort Wayne, you should pay for the services. Is it not the purpose of Harrison Square to attract people to Downtown Fort Wayne and spend money? If they come from outside the city should the city not charge them to use the roads, water & sewer and a prorated amount to cover both Fire and Police protection? If I spend money anywhere in Fort Wayne, is it not the owners of the establishments that pay for the service they receive from Fort Wayne and I in turn pay a price for those goods and services based on the cost of doing business? What if Allen County used the same logic to charge all city residents a tax to use the roads to drive out of Allen County to some other destination?

posted by William Larsen @ 9:00 PM