Frustration mounts in Upper Darby after mayor's budget includes new "earned income tax"
UPPER DARBY, Pa. (CBS) -- There's some strong backlash in Upper Darby Township a day after the mayor's budget called for a new "earned income tax."
It's projected the earned income tax could bring in some $12 million for Upper Darby.
However, business owners caution it will have a negative impact on a lot of workers.
The firewood pile is two stories high at Delco Mulch on State Road in Upper Darby and frustration may be higher.
Owner Carl Hemphill is struggling to understand a recently revealed plan by township officials to create a new 1% earned income tax.
Hemphill said he doesn't know how he'll tell employees they're going to lose an additional 1% from their check.
"Right now, the economy is slowing," Hemphill said. "It's the absolute wrong time to raise any taxes. We're noticing it right now, our phone isn't ringing like it was a year ago. We're on a downslope."
At a rather contentious budget hearing Wednesday night, Upper Darby officials heard from the public about the mayor's budget calling for that new tax.
"What you're doing is you're just adding to the burden, you're adding to everybody's burden," an attendee of the hearing said.
The township wants the additional revenue for more police and to freeze property taxes with the new so-called "EIT."
The mayor wasn't available for an interview Thursday but had this to say Wednesday night.
"The goal of implementing the EIT is to diversify our tax revenues and not just rely on property taxes," Mayor Barbarann Keffer said.
"A one percent additional tax actually could be crippling," Mike Vraim, of Vraim Funeral Home, said.
Vraim says the new tax could force business and personal decisions of his own. He believes it sends the wrong message.
"You'll see a lot of for sale signs, people won't want to stay in the township if this is where it's going," Vraim said.
Vraim added it would be bad for residents and businesses.
At Wednesday night's meeting, the proposal was panned by nearly every member of the public and a handful of council members.
Construction firm owner Bill Santora told CBS Philadelphia he's concerned for workers in the service industry already struggling.
"The deli down the street, the Mexican restaurant -- where we go all the time -- they'll really be affected," Santora said. "And nobody realizes that."
The township council is set to vote on the EIT on Nov. 29.
If passed, it would take effect on Jan. 1 could be crippling.
