After a few harsh exchanges between two officials who were sitting side by side, Easton City Council approved a sizeable increase in the earned income tax paid by commuters.
Wednesday night's 6-1 vote boosts the earned income tax rate from 1 percent to 1.75 percent for people who work in the city but live elsewhere. It takes effect in 2013.
Unlike public hearings on the tax hike, there were no appeals to reject the tax increase from workers who would be affected by it, or business owners who employ those workers.
But there were several prickly exchanges between Mayor Sal Panto and council member Jeff Warren, who opposed the hike aimed at helping the city raise the money to make a $1.8 million pension fund payment that's due next year.
Before the vote, Panto accused Warren of "political grandstanding" with a recent op-ed column in a local newspaper. The mayor said that he, too, would like to vote no on the tax increase. "But it would be reckless not to vote for this [increase] without coming forward with an alternative," Panto added. "I'll vote yes because it's the responsible thing to do."
Warren responded by saying he's opposed to the concept of a commuter tax. "It's a tax on people who never voted for us," he said. "And I don't believe every single option has been looked at. ... A $100,000 cut here, and a few $10,000 cuts there, and soon it starts to add up to something." He also said a no vote would send a message to the state Legislature about the need for pension fund reform.
Panto pressed Warren to be specific about alternatives to the tax hike. He ran through a litany of options to help raise the pension fund money -- including raising property taxes 6 mills; hiking the earned income tax for Easton residents from 1.75 percent to 2.25 percent; boosting garbage collection rates by 60 percent and sewer rates 35 percent, and laying off police officers, firefighters and other city workers. "I will gladly listen to what you have to say. I'll vote no, too."
Council member Michael Fleck said the tax increase is "an opportunity to recoup money from people who use our services." He also took a shot at Warren, saying he was opposing the tax hike because he is thinking about running for a countywide office and didn't want to offend voters outside the city.
Warren denied the charge, saying his vote was based on "conviction and principle."
The commuter tax vote figured in a later part of the meeting, while Fleck and Panto were praising police officers' handling of the arrest of a man who walked into two banks in Easton on Monday with signs that included the words "You're being robbed."
Fleck took issue with two of signs that called police "pigs" and "fascists," with each word preceded by an expletive. "I support the ideals of the Occupy movement, but these kinds of actions do not help the cause," he said. "And when you think about it, in a roundabout way we voted tonight for a redistribution of wealth!"
Panto pointed out that police were involved in District Attorney John Morganelli's decision earlier in the day by to drop bank robbery charges against David Gorczynski, who says his actions were a protest against the way banks conduct business.
The mayor also said he disagrees with Morganelli's decision not to seek jail time for Gorczynski, and would be opposed to a plea deal on pending lesser charges. "The hysteria in that bank [where Gorczynski was arrested] was not good," Panto said.
Easton raises EIT for city workers who live outside city limits
Published: Aug 09 2012 02:34:04 PM EDT
Updated On: Aug 09 2012 06:55:02 AM EDT
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Copyright 2012 WFMZ. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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