Friends,
Democracy is underway locally, as our City Council considers proposals our administration has offered for new revenue: two bonds to invest in local infrastructure and an increase in our local income tax to address several looming challenges. (More information at: Bloomington.in.gov/NewRevenue)
I strongly believe it is responsible and prudent for us to take these steps. They will let us invest in climate-change preparedness and mitigation. In more affordable housing and a much-enhanced transit system. They will help ensure strong basic city services endure in public safety, parks, public works and more. Together, these investments will support a virtuous cycle of improved quality of life and opportunity for all, with more equity and more sustainability.
What's surprising is our overall level of local taxation. Among the 20 largest cities in Indiana, Bloomington--the most progressive of them all, I think--has very nearly the very lowest combined rate of local property and income taxes: 19th out of 20. In particular for income tax, that leads to some strange situations:
Imagine three colleagues working alongside each other, perhaps in 3 classrooms in a local public school, or on a Catalent production line, or together at Indiana University. Let’s imagine each earns an identical $50,000 in taxable income with similar deductions. They will pay an identical federal income tax. And identical state tax. But one lives in Martinsville and will pay their county $1,360 in income tax to support their local governments. Another lives in Spencer and will pay $1,250. The third lives here in Monroe County and will pay less than $673 to support our local governments.
I was surprised to learn this. Perhaps you are too. Even more surprising, of our seven contiguous counties, Monroe County has the lowest local income tax rate. We certainly don’t have lower expectations of our city and county governments. Indeed, we need major investments in our county’s criminal justice system, with a shockingly inadequate jail and underfunded support services. We need major investments to help working folks afford decent homes. We need to meet many challenges ahead, and we need resources to do so, which we can’t rely on from the state or federal governments.
Please review the proposals in front of the City Council and let them know your views. (Poll available here: polco.us/n/res/vote/bloomington-in/city-of-bloomington-2022) I hope you will support this critical step forward, as we recover from the pandemic and recession. It’s a pivot point for our community, and we owe the next generations the opportunities that many of us have enjoyed.
We should do this. We can do this. After the proposed increase, that worker living in Monroe County would pay $1,100 to local government annually, still less than their colleagues in those neighboring counties. We will have funds dedicated to help anyone for whom the tax creates a serious burden. And that increase will let Bloomington thrive and prosper, more equitably and more sustainably.
Thank you for your care of our community, and for helping our democracy grow.
Democratically yours,
John
P.S. Wasn’t it a beautiful day when Judge Ketanji Brown Jackson was confirmed as our next Supreme Court Justice?! It was a painful and shameful confirmation process at times, but it was a powerful moment for American history when she prevailed. Let’s remember progress comes with vision and elections and hard work. Onward we go.