…OR, you COULD move to Alaska, Delaware, Montana, New Hampshire and Oregon…
Where they have NO SALES TAX!

B.G.

…or Ontario Canada, where their 15% sales tax go to pay for that FREE (LOL) healthcare.

Yeah, I read an op-ed piece from our favorite liberal local newspaper where they stated that the sales tax was going up 16.67%! They did not mention, however, that the increase sales tax would only increase your payout by less than 1% of your total cost.

Wasn’t this the same paper that wanted us to fork over several thousand dollars a year to pay for the incredibly mis-managed school system’s bailout?

Chicago has not choice to grow tax revenue they must rely on the sales tax- they cannot annex.

I am not bitching about the 1% increase….. but I think it is short sighted to APPLAUD Mitch Daniels for lowering property taxes. This raise in sales tax will cost MOST hoosiers more out of pocket than they were paying before.

At least other people coming into the state will contribute by taxing their spending. It spreads out the taxation. It does take the burden off of property owners.

I don’t think an across-the-board consumption tax is all that bad, considering how erroneous the property tax system was.

I think it is rude and discourteous to tell me to move anywhere. I’m not moving. Montana is great but you can’t eat the scenery.

But Kevin, people will likely spend less on sales taxes than what they are saving on the reformed property tax, and taxpayers control the sales tax by deciding to buy-or-not-to-buy. The property tax is involuntary unless you choose to live someplace beyond it’s reach (and I am not sure where that is, in the USA).

Dan, if I was in Chicago, I’d be making more for the same qualifications/skills I have here in NE Ind. I understand the cost of living is more in Chicago, so it’s all relative.

Either way you slice it, I will pay more in taxes overall.

Squarefinger-

I disagree- for MOST Hoosier families, they will pay MORE under this plan than they did with the property tax.

I am NOT saying our property tax system did not need changing….but this is NOT a solution, just a redistribution, done in a short term during an election year.

I can easily deduct my property and state income taxes on my federal tax return. Sales taxes cannot be deducted without giving up the state income tax deduction. This point was never addressed by the governor or the legislature.

The sales tax increase is a very fair redistribution. 38% of Fort Wayne residents are renters (http://www.city-data.com/housing/houses-Fort-Wayne-Indiana.html). Renters utilize the city departments, school systems, etc as well as property owners. It seems most fair that any tax increase should be for everyone. And PLEASE NOTE - a sales tax does not affect the purchase of food (purchased at a grocery). For those of us who choose to be thrifty, our tax follows are spending patterns. It seems to be very fair.

Michelle,

Do you think renters DO NOT pay property taxes?

I am a landlord- I pass that cost along in the form of RENT. So, 38% of the cities population are now going to be paying the same RENT, and MORE sales tax.

Not a solution, just a redistribution.

No Kevin, YOU pay property taxes. How you choose to recoup those funds is up to you. With a cap on the taxes now, you won’t have to raise rent as much.
There are two things we need to survive - food and shelter. It is not such a bad thing to tax the things we tend to want instead need. (which is probably about 80% of what most consumers buy - want)
If you aren’t a big spender, you won’t have to pay as much tax.
It may be a redistribution, but a pretty fair one.

So Kevin Knuth, you think Fort Wayne’s answer is to annex, annex, annex and then put in the Henry and Pape property tax increase and THEN lard up with an increase in the local option income tax?

Mayor Henry said during the campaign he wanted an optional LOCAL sales tax too.

That is the Allen County Democrat and Tom Henry plan. Tax, tax, tax and tax some more. Except for downtown condos.

This is not an argument for or against the change, just some observations.

1) I think the argument that people can control this tax by lowering their spending is not very strong. People spend what they make. Either that, or they save it to spend later. If they never spend it, then there’s really no point in having it. I suppose you could save today, in hope that the sales tax would be lowered in the future and you could then spend at a lower cost, but that’s pretty speculative.

Yes, people could control this tax by controlling their spending, but they could also control their property tax by buying a less valuable hame. The bottom line is that to suggest that people should stop spending their income because the sales tax is too high makes no more sense than to suggest someone sell their house because the property tax is too high.

2) In essence, it is just a redistribution program; who we tax, and how much. But the argument about out-of-state visitors paying into our tax base with the sales tax shouldn’t be ignored. Florida doesn’t even have a state income tax, because they charge a sales tax to all their visitors. And this seems fair. We’re tearing up their roads while driving around there, so why shouldn’t we pay to re-build them? Granted, Indiana does not receive anywhere near the visitors that Florida does, but it still shouldn’t be ignored.

3) And finally, Kevin, as a fair and just landlord, I feel confident that you will respond to the cut in property taxes by making a corresponding cut in your rental rates! The greedy “bad” landlords will not do this, which will result in renters leaving their properties en mass and flocking to you. Daniel’s plan is going to make you the rental king of F.W.

Good point on the out of state-ers paying in. With the new and improved Grand Wayne Center and the soon-to be Wizards stadium pulling-in those out of state visitors, Fort Wayne should have nothing to worry about. (is there a sarcasm key on the keyboard?). But seriously, out of state visitors will surely be a plus.
I agree that folks spend what they make, but property tax doesn’t really address that. There are a lot of retired people and fixed income families who are hugely impacted by higher property taxes. However, if it is there spending that is taxed, if they don’t have it to spend, obvioulsy they won’t. I have no problem with teens who regularly spend over $150 for a purse or shoes to have to pay $1.50 more.

I believe, and could be mistaken, that the SALES tax goes to the state. A portion of property taxes went to the city.

Therefore, less revenue for Fort Wayne…….less services…….

I think you are right, but the state then is also taking over paying for 15 percent of school operating costs, child welfare levies, costs of juvenile incarceration in state facilities, health care for the indigent, pre-school special education levies, costs of police and fire pensions (http://www.in.gov/gov/files/031908_Governor_signs_property_tax_relief_and_reform_bill.pdf)
I think what really needs to happen now, is the city and county need to sit down and look at how we can save money. There are always ways to trim spending and use creative means to balance a budget. It doesn’t have to be business as usual.

Michelle,

I agree with you. What the Mayor has said is that we need the tax increase AND to reduce services.

Simply increasing the taxes will not cover the shortfall.

I know that everyone will not agree with this- but I like potholes being filled, I like police on patrol and the fire stations with enough staffing to due their duty. I even like going to our city parks.

Bottom line- cuts are coming…it is really just a matter of WHOSE ox gets gored.

due = do