Politics & Government
Tredyffrin Supervisors Reject Implementing An Earned Income Tax
The supervisors participated in a study on the option of implementing an earned income tax.
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TREDYFFRIN, PA —Tredyffrin Township supervisors this week passed a resolution to reject implementing an earned income tax as a source of revenue for the township.
Julie Gosse, the chairwoman, said the township officials participated jointly with neighboring Easttown to study the implementation of an earned income tax as a way to generate funds to support fire and emergency services as well as stormwater management.
State law allows municipalities the authority to tax individuals' income.
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Gosse said the township’s finance committee agreed that the potential impact on residents and businesses would negate the potential revenue.
“We do feel we need to generate revenue, but this approach does not feel like the right one,” Gosse said.
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The study showed an earned income tax could generate $8 to $12 million in revenue for the township.
Supervisor Murph Wysocki said the data collected from the study shows an earned income tax would put a heavy burden on residents who have earned income.
There are 44,000 people working in the township. Some people who live in Tredyffrin also pay earned income taxes to Philadelphia and other municipalities where they work.
The study showed that Tredyffrin residents paid $6.3 million to other municipalities in 2022.
“I looked at the data and thought about our residents,” he said. "I also looked at the effects on attaining and attracting new business. Those issues make a big difference.”
Supervisor K.S. Bhaskar said the study on earned income taxes provides data on the tax, but a tax is not going to be implemented.
Supervisor Sharon Humble said many people open businesses in Tredyffrin because there is no earned income tax on business in Tredyffrin while other neighboring municipalities do have the tax.
David Miller, a supervisor, said the earned income tax will not benefit the township.
He said the best way to collect money for stormwater issues is through an impervious surface-based fee. He said the funding for fire and emergency services is through dedicating a fire tax.
Supervisor Matt Holt said in a note read by Gosse that he apologizes for not being at the meeting in person.
"This motion is premature, and I encourage the board to table it until the further strategic review of township priorities can take place," he said.
The study is available here.
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