Jan 4, 2012
Arena's First Injury
Although Allentown is more than a year away from it's first hockey game, we already have an injury. The Morning Call's Devon Lash reports that earned income tax revenue , despite a higher rate last year, has not met the projections for 2011. Starting this year, all new earned income tax from the NIZ zone, up to 130 acres, will be diverted to pay debt service for both the arena and certain kingmakers, Butz and Reilly. Now, factor in the lost tax from the former businesses in that square block, and we can see another increase just to stay even. The collection of the earned income tax is complicated. I suspect that with the changing rules between where one lives and works, the cost of record keeping and collection might approach the revenue produced. Small businesses are already overwhelmed by the paperwork. Many have taken to out source payroll, even for only a few employees. Let not a few taxpayer teeth or dollars get in the way of ribbon cuttings.