Benton Harbor considering income tax increase - Fox 28: South Bend, Elkhart IN News, Weather, Sports

Benton Harbor considering income tax increase

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In Benton Harbor a town hall meeting was held Wednesday night to discuss the proposed city income tax. The tax, if passed, would be one percent.

So for an average income of $17,000, residents would pay $170 more to the city a year. People who work in Benton Harbor but don't live there would pay half a percent.

A member of the Citizens Research Council of Michigan spoke at the meeting. He said this tax will bring in more money, but at the same time it could force businesses and residents to think twice before living in the city.

Eric Lupher, Director of Local  Affairs for the Citizens Research Council of Michigan said, "Well given the reality of where Benton Harbor is now obviously there has been some dis-investment in the city. There are buds of new investments coming in the city with Whirlpool and the golf course hopefully that will spur economic development."

He said only twenty-two cities in Michigan have the tax. There have been a lot of cities that have looked into but decided against it.

The commissioners would have the issue on the ballot in November.

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