Indiana Tax Assessment [Tax Revolt Alert]

Wall Street Journal ^ | May 2, 2008 | Kimberly Strossel

[Zakeet]

As Barack Obama and Hillary Clinton pick through this state's primary results come Tuesday, the last person on their minds will be Bart Peterson. Yet the Peterson ghost may well come looking for the eventual Democratic nominee.

Mr. Peterson was, until recently, the popular Democratic mayor of this fine city. Then voters went to the polls in November and threw him out in favor of an unknown and underfunded Republican. It was among last year's biggest political upsets, and marked the first time in 40 years Indianapolis voters had canned a sitting mayor. The source of their anger? Taxes.

In particular, the county's income tax rate, which Mr. Peterson raised to 1.65% from 1%. Coming into an election year with a 75% approval rating and a mountain of campaign cash, Mr. Peterson thought he could risk the tax-hiker label. He felt further bolstered by his argument that the tax was earmarked for crime fighting. He squeaked his levy through in July; by November he'd been washed out on a tide of outrage.

Indiana isn't alone in its tax discontent. As the economy has slowed and home values have slipped, state and local governments have been raising taxes to cover revenue shortfalls. This has squeezed middle-class households, just as surely as higher gas and food prices, or rising medical costs. Voters last year responded by shooting down tax-and-spend proposals in Oregon, New Jersey, Iowa, Washington and North Carolina.

Voters in the Hoosier State are near revolt, last year throwing out 21 mayors in primaries, many for failing to stem out-of-control property taxes. Antitax placards decorate yards, and the growing tax burden is a routine source of anger among voters I interviewed on Indiana streets.

This bitterness was left unacknowledged by the Democratic presidential candidates as they have trudged around the state.

[abb]

This is good news...

[indianaconservative]

Taxes was one reason, the other was his support of a corrupt city government and council. Most of the council incumbents were dumped too.

[indianaconservative]

Not to take away from Ballard's victory which was quite spectacular and unexpected. If only we could have gotten rid of the Carson name, that would have made for a good year. But, with so many Dem candidates to split the vote I think Carson will get the nomination and we will see him continue the Carson machine until he ticks off the local Dem party.

[econjack]

In particular, the county's income tax rate, which Mr. Peterson raised to 1.65% from 1%.

It wasn't Peterson's increase in the county income tax that got him thrown out of office. It was the property taxes that killed him. My property taxes went from $1180/half to $2437/half in a period of two years. The bulk of those funds go to public schools and Indianapolis has one of the worst public school systems in the country and the third lowest graduation rates of major cities in the country. That's what got Peterson thrown out of office.

[ohioman]

I know the tax pain feeling my friend. Here in Dayton, OH my 30 year fixed mortgage feels more like a variable rate mortage, since the idiot mostly dem voters here never see a levy they do not vote for. I dread every May when I find out how short my excrow account will be due to the new damn levy or levies that have been passed in the past year. BTW - Ohio is the 5th most taxed state in the Union and with the horrible politicians at all levels in this state (except for Ken Blackwell when he was active), we we will probably move up the list as industry continues to move on down I-75 to a better business climate in the South. It sounds like Indiana is in the same boat as Ohio.

[econjack]

We're a little lucky because we have a really good governor in office. Alas, most of the other politicians at the state level are Dimocrats and only know how to raise taxes. When the word went out that property taxes were going to be cut, all of the local politicians said: “Well, we'll have to cut police and fire protection.” Fortunately, some people had enough cojones to say: “Go ahead and you'll be recalled in a heartbeat. Try cutting administrative dead wood first.” Lo and behold, the fear-mongering seems to have stopped and they are actually starting to re-examine budgets.