The Northwest Indiana Times reports that proponents of a Lake County Income tax are working hard to have the votes to overturn an expected veto of the plan when it goes to the Lake County Commissioners.

Lake County officials plan to meet Thursday to make the mathematics of a potential local income tax add up to the benefit of the largest number of constituents.

Critics of the proposed tax, including a county councilman whose vote is needed to pass it, question whether an equitable distribution formula is possible given the diverse demographics, social needs and politics of the county.

The battle to win over a Lake County Council member — possibly Tom O’Donnell — will depend on whether income tax supporters are able to work out a deal that spells out property tax relief for owner-occupied homes.

But, will raising taxes really solve the problem of high tax burdens that have riled up so many voters?  And, will the money really go to property tax relief if it is passed?

Gary Mayor Rudy Clay is pushing for a formula that will send tax money to Gary where there are many rental units.

Professor Maurice Eisenstein warns that the ultimate outcome will be a shift of money from south county cities to those in the north.

Writes the Northwest Indiana Times’ Bill Dolan:

The formula considered Monday punishes communities such as Gary, where many residents live in rental properties. Gary would lose $3 million of its income taxes to other communities.

Gary Mayor Rudy Clay said Monday he will speak to the council Thursday about amending the formula to keep more dollars in Gary.

If the Lake County Income Tax passes, look for southern Lake County cities to become donors to those in North Lake County.  If this was any other part of America, it might not be a problem, but the history of greed and corruption in the northern part of the county leads many to fear that their hard earned money will end up lining the pockets of corrupt politicians.

The real solution to the property tax crisis is to make government more efficient and root out waste and corruption in the system.

Technorati Tags: COIT, Lake County Council, Lake County income tax

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