Mayor Coleman Advised to Raise Your Taxes

NBC 4: One group has recommended City Hall solve the city’s budget woes with an income tax increase and city fees hike. One year ago, Mayor Michael Coleman asked a group of 15 financial experts to help the city come up with recommendations on how to get Columbus out of the hole.

Mayor Michael Coleman’s economic advisory committee said an income tax increase is critical in saving Columbus’ economy. “Our backs are up against the wall. Further cuts will jeopardize basic government services,” said Robert Howarth, of the Economic Advisory Committee.

The committee said the city has a huge structural imbalance in how it is run and the city does not make enough revenue—even with the recent layoffs and cutbacks. If an income tax increase weren’t to happen, citizens should expect drastic cuts next year.

The city income tax currently is a quarter of a percent; the proposal would raise it to half a percent. That would bring the total income tax to about $2.50 out of every $100 earned.

The committee also recommended an increase in fees for trash collection and adding more red-light and speed cameras around the city. City Auditor Hugh Dorrian said there isn’t any way to keep the city afloat without more revenue.

If city leaders were to approve the committee’s recommendations, voters would see the tax-increase proposal on the August ballot—at the soonest. Business owner Eric Ling and area resident Clifford Dowden said they’re OK with the increase. But, they said that during economic tough times, not everyone may feel the same way. “If we expect to have the standard of living we’re used to, we should be adaptive,” Ling said.

The proposed increase would be the first income tax increase since 1982. In response to the recommendation, Coleman’s spokesman Dan Williamson said the mayor, “appreciates all the time and effort the committee members put into the report and he looks forward to reading it, digesting it and working with City Council and the city auditor to decide what action to take.”