Elkhart County already has a 1.5 percent local option income tax and the County Council is considering raising the rate another 1.25 percent, 1 percent of which would replace revenue lost by tax caps and another .25 percent for public safety needs, according to Yoder.
Yoder said having the option to raise yet more local income taxes to replace the business personal property tax doesn’t mean it’s a good policy.
“With our mix in wages and incomes (in Elkhart County)... at some point we are taxing our community too much on the income side,” he said.
Kauffman said the General Assembly may be going too far in pursuing a better business climate. He said state officials claim Indiana has the fifth-best business climate in the nation.
“Do we have to be the very, very best?” Kauffman asked. “And how do we eliminate or reduce every tax we can and still provide services?”