In a step toward financial stability, Harrisburg City Council has voted to double the earned income tax for residents. Although several citizens told council members Tuesday night they couldn’t afford a tax hike, residents Wednesday seem to understand the need.
The increase from one percent to two percent on the earned income tax was enacted on a five-to-two vote. It’s one piece of a state-mandated fiscal recovery plan, which took a Commonwealth Court order, to get council to enact it.
Harrisburg is expected to end the year with a $15 million budget deficit. The tax is estimated to raise an additional $45.1 million.
The tax can only be collected for a year. To extend it beyond would require approval of the state court.
Mayor Linda Thompson told council if the tax hike was not adopted, city employees would lose jobs.
Wednesday, city residents appear to be accepting the tax.
“If they’re going to double it then a lot more stuff should be done in the city,” commented Robert Griffin. “But right now I don’t see that with the economic crisis we’re already suffering.”
“Going from one percent to two percent will make a nice change around and we need that,” added Jesse Hughes.
“If they’re going to use it to get out of debt, I mean look around, of course this is an amazing thing,” commented Kelsey Benn. “But if they’re going to use it to get themselves out of something then I got to be against it. Either way what are you going to do about it?”
“It has to be done. I’m upset about it,” stated Tina Magaro. “You know it comes out of my paycheck. It cuts down on my vacation time and bicycle parts. But it has to be done. We have to get the city out of the mess it’s in.”
Councilmember Brad Koplinski says he voted ‘no’ because people can’t afford it. Colleague Susan Brown-Wilson did not support the increase because the state and city creditors have already ‘brow beaten’ residents.
This is the third tax increase in a year for city residents. Two were levied by City Council and one by the school board.
The increase from one percent to two percent on the earned income tax was enacted on a five-to-two vote. It’s one piece of a state-mandated fiscal recovery plan, which took a Commonwealth Court order, to get council to enact it.
Harrisburg is expected to end the year with a $15 million budget deficit. The tax is estimated to raise an additional $45.1 million.
The tax can only be collected for a year. To extend it beyond would require approval of the state court.
Mayor Linda Thompson told council if the tax hike was not adopted, city employees would lose jobs.
Wednesday, city residents appear to be accepting the tax.
“If they’re going to double it then a lot more stuff should be done in the city,” commented Robert Griffin. “But right now I don’t see that with the economic crisis we’re already suffering.”
“Going from one percent to two percent will make a nice change around and we need that,” added Jesse Hughes.
“If they’re going to use it to get out of debt, I mean look around, of course this is an amazing thing,” commented Kelsey Benn. “But if they’re going to use it to get themselves out of something then I got to be against it. Either way what are you going to do about it?”
“It has to be done. I’m upset about it,” stated Tina Magaro. “You know it comes out of my paycheck. It cuts down on my vacation time and bicycle parts. But it has to be done. We have to get the city out of the mess it’s in.”
Councilmember Brad Koplinski says he voted ‘no’ because people can’t afford it. Colleague Susan Brown-Wilson did not support the increase because the state and city creditors have already ‘brow beaten’ residents.
This is the third tax increase in a year for city residents. Two were levied by City Council and one by the school board.