T/E’s Tax Study Group Hammers Out the Pros and Cons of an Earned Income Tax

There have been months of talk about a possible Earned Income Tax being levied in the T/E School District. In the coming weeks, nearly two months of discussions and hearings will culminate in what will be two public presentations of the T/E Tax Study Group’s findings on the pros and cons of an Earned Income Tax.

The volunteer public Tax Study Group, which has been guided by the District’s Business Manager Art McDonnell, Vice President of the School Board Betsy Fadem and Dr. Dave Davare of the Pennsylvania School Board Association, will present its findings on Thursday, November 3. There will be an afternoon and an evening presentation held at 1 p.m. at the T/E Administration Offices and at 7 p.m. at Both presentations will be open to the public, and both will be broadcast on Comcast Cable Channel 14 and Verizon Cable Channel 20.

The presentation, and most integral aspect and charge that the Tax Study Group has been working on, will identify the pros and cons of a possible EIT for the schools and the residents. During its final meeting held on October 13, the group finalized its presentation.

Here are some of pertinent factors that the group has considered.

PRO: An EIT revenue stream added to the existing property tax revenue stream will stabilize the T/E School District’s revenue sources, through diversification, making budgeting and planning easier.

CON: An EIT does not solve the budget shortfall beyond the short term (3years).

PRO: An EIT will help to protect retired citizens on fixed incomes.

CON: AN EIT will put a tax burden more on the residents and less on the corporations.

PRO: The T/E School District is a highly sought after district and an EIT would help to maintain the competitive edge for both the children and the property values.

CON: AN EIT is a less business friendly tax and may decrease attractiveness of TE to business owners.

What's Next

Once the Tax Study Group presents its findings, the next step will be up to the school board. Considering the information from the Tax Study Group and the public, the T/E School Board must then decide whether to formally propose an earned income tax.

If the School Board were to vote in favor of proposing an EIT it would only be a first step. Ultimately the issue would be put to a public vote via a referendum on next spring's primary election ballot.

The EIT, and how best to close a projected T/E budget shortfall in the next five years, is a major issue for candidates in the November school board races. The first formal test of public opinion will come in the November election just five days after the Tax Study Group makes its final presentation to the public and the School Board.