Feb 4, 2006

HB1400 -- "Hometown Matters" government consolidation

INFORMATION: HB1400 which was first paraded in front of the world at a morning press conference in Gov. Daniels' office did not make it through the House committees. This evil legislation which essentially directs counties to create a local option income tax, raise food and beverage, innkeepers and sales taxes, AND allows for a property tax levy is not dead. The bill is also controversial in that it eliminates levels of elected officials. While libertarians are split on exactly what the definition of "smaller and more local" government may be, this bill was not the answer. The way Rep. Whetstone authored this under the guidance of the Indiana Association of Cities and Towns essentially gives local governments a small perk for allowing the state to push their underfunded programing down to a "local" level. The great State is not removing any of its taxes to compensate for the increased local taxes. Look for this to come back in as additions to a Senate bill. We'll continue to track this and offer our position in more detail as this takes better shape. In any form, it's not looking very good for lower taxation and government fiscal control. Can you say "tax and spend Republican?"

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