On Wednesday, Bloomington’s city council could take a final vote that would enact an increase to the local income tax (LIT) that is paid by all residents of Monroe County, whether they live inside the city limits or not.

Bloomington mayor John Hamilton has proposed an increase of 0.855 points, which would make the total rate 2.2 percent. For county residents who pay the tax, it would mean an extra $85 dollars paid on every $10,000 of taxable income.
At the city council’s Wednesday night corral, there’s the possibility of some political horse trading, based on the amount of increase to the rate. The horse trading could even lead to a delay in the final vote for at least another week.
At-large council representative Matt Flaherty said at last week’s meeting he would support the rate as proposed by the mayor. But he added, “In working to meet my colleagues somewhere in the middle, at the very least, I think I can come down to 0.65, and find a balance of what I think is most essential.”
The balance to be struck in the package proposed by Hamilton is between public safety and essential services on the one hand, and climate change mitigation and quality of life on the other.
The focus of the council’s consideration now appears to be just the rate, and how much revenue it would mean for the city of Bloomington.
I think it’s wrong to make that the sole focus of deliberations.
It’s wrong for at least two connected reasons. Continue reading “Opinion: Local income tax increase, a way to heal rift between Bloomington, other stakeholders?”