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Facts And Figures: How Would The Guv's Tax Plan Affect Your Budget?

QuestionguyThe Fort Wayne Journal Gazette's Niki Kelly put pencil to paper to determine whether she personally would see a net gain or loss under the Guv's property tax plan. That's a mighty fine exercise for any taxpayer to undertake before deciding which plan to support.

"These plans are designed to be revenue neutral statewide, but they do create winners and losers.

"Let me give you an example.

"The governor's plan calls for a 1 percentage point hike in the sales tax to help cover the cost of shifting several property tax levies to state control and ultimately dropping my property tax bill by one-third.

"There are also future spending controls and caps, but these are hard to predict, so I am going to focus on the immediate results.

"The property taxes on my modest home in high-tax Marion County would go down about $300.

"So what would I pay under the sales tax increase?

"To estimate this, I reviewed several months' worth of household spending. I did not include trips to the grocery – though some items bought there are taxed – and instead added up spending on restaurant meals, gasoline, birthday gifts, furnace filters and more.

"These are everyday items and don't include large purchases such as a car or washer and dryer.

"I came up with a monthly average and multiplied by 1 percent to find that the governor's plan would cost me about $500 a year.

"Obviously under this plan I am a net loser.

"A plan put forth by a bipartisan tax panel promises a 50 percent cut in property taxes but would require an additional local income tax increase of between 0.6 and 0.7 percent to get there.

"(The Marion County increase would be even higher, by the way.)

"Even at half off my property tax bill, my husband and I would be net losers by more than $900.

"Obviously there are winners out there under these plans – especially folks with fixed incomes and nice homes.

"I'm not advocating for or against any proposal, which all have genuine merit. What I am advocating is that you do the math. Get past the rhetoric and figure out how you fare under these plans and how you want your tax dollars collected.

"Maybe in the end you will decide reform is the necessary and right thing to do regardless of how you are personally affected. Maybe not.

"But tell your lawmakers. They need all the information to make a wise decision."

Comments

"(The Marion County increase would be even higher, by the way.)"

This is 100% wrong. The Marion County increase would be 1%, just like every county in the state.

No, Sugar, we have an additional 1 percent sales tax on food and beverage in Marion County.

I retract my statement, I read sales tax, not income, apologies

Marion county does an additional 1% sales tax that pays for Conseco Fieldhouse, but an increase in the state sales tax would still be 1%, not a larger increase than any other county

But you wind up paying more for certain things here than you do elsewhere.

And, as you pointed out, there's the local income tax issue, too.

Still, it would be a 1 penny increase for every dollar I spend, just like everywhere else, I wouldn't have a larger increase than anyone else

I think what TDW means is that if right now you have a $5.00 meal at Wendy's in Marion County you pay 7% or 35¢. That same meal in Hamilton County would cost you an extra 30¢! Yes, it would go up evenly across the state, but that means 40¢ in Marion County but 35¢ elsewhere. In other words, eating out, buying gasoline, etc. will still be a penny on the dollar higher here in the Capitol City.

Oh my God, Jen is to the right of Mitch and her readership.

I'll take it when I can get it.

Mitch is such an asshole. He raised Marion County taxes on dining to cover the Colts, saying that it's beautiful that out-of-towners will be financing the new stadium.

In MitchMath, there are more visitors eating dinner in Marion County restaurants, every evening, than Marion County residents.

This moron should not be allowed anywhere near a calculator.

Both Mitch and Orentlicher are having non homeowners pay the property tax bills of homeowners and are doing nothing than committing future generations to the current level of spending.

How many itemized on their federal tax return?

It is much easier to itemize state and local income taxes than it is to itemize sales taxes.


In a way sales taxes are a hidden tax because few if anyone take the time to total their annual sales taxes.

make the guv do a you tube of the plan. that's what the tax nutterballs want now. it's on their site.

"He raised Marion County taxes on dining to cover the Colts, saying that it's beautiful that out-of-towners will be financing the new stadium."

Ugh, Mitch did not raise _any_ taxes to cover the Colts. He only put a game plan on the table. The county/city officials in Marion and certain surrounding counties raised the taxes.

"In MitchMath, there are more visitors eating dinner in Marion County restaurants, every evening, than Marion County residents."

Remember, the Colts stadium is part of a package with the convention center. The pro-stadium folks always remember to tell us this. Therefore, there are times when there are likely more non-Marion Co. residents eating out than Marion Co. residents. Also, the issue of fairness is laughable. Everyone in the state will be hit by the same 1% increase. However, people who eat out in Rush Co. will be 1% than those in Hancock County. The Rush Co. tax will be 2% less than that in Marion County. Hancock Co. raised the food and beverage tax by 1% along with a few other surrounding counties. Marion Co. already had a 1% tax and added another 1%. These were all local taxes voted on by local elected officials.

Only the counties surrounding Marion county had a sales tax increase to pay for the colts, not Marion. Marion county's sales tax increase game from Conseco.

And it doesn't matter if Marion County's sales tax is already higher, a statewide increase would still be only 1 cent. Yes it would be more than other counties, but as of right now Marion county would not be hit harder than any other county with an increase, the increase is the same!

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