Collection of the earned income tax will no longer be uniform causing problems for employers which will result in a decreased collection percentage and greater use of the delinquent tax collection system. Substantial savings for home owners and wage earners are not evident. A few benefit at the expense of the rest. The law is mostly tax shifting. The law is poorly written and will likely result in court litigation.
Tax reform is a political football.
The committee believes changes to the law are being discussed but may not occur for two to four years. The district is stuck for three years if the Act does not work. The district will have more difficulty accurately projecting an annual budget and long range planning. The Act unnecessarily limits the decision-making authority of the Board of Directors. Earned income is a more volatile tax.