Wednesday, September 14, 2011

Mayor Ballard Proposes Income Tax Credit for Education Non-Profits - Huh?

Indianapolis Mayor Greg Ballard
Today Indianapolis Mayor Greg Ballard released his education plan, which is outlined in the blog HoosierEd.

While I applaud Ballard's efforts on education reform, perhaps this proposal was put together too quickly.  I quote from the first section entitled "Make Indianapolis National Headquarters for Education Reform Movement":
To make Indianapolis the national headquarters for this growing movement, Mayor Ballard will attract education reform leaders and groups to locate in our city. Mayor Ballard will offer an income tax credit to nonprofit education reform organizations that locate in the city. This credit would refund local income taxes to the nonprofit group to reinvest in their mission.
Uh, Mayor, non-profits don't pay income taxes, federal state or local.  A credit for taxes that an organization doesn't pay is not much of an incentive to relocate to Indianapolis.


Cato said...

Perhaps he's talking about exempting their employees from income taxes?

The General Assembly makes special laws, all the time, so anything is possible.

Paul K. Ogden said...
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Paul K. Ogden said...

Cato, I thought of that. I highly doubt though that's what he meant when he proposed the tax credit. It was probably just a mistake. I'm sure he wanted the non-profit and not its employees to benefit.

Now they've been caught in a mistake though they'll probably suggest they meant the employees. If they're talking about some sort of kickback to the non-profit from an employee tax credit, that might not be legal.

Indy Rob said...

Umm, This would not be legal. The county option tax is paid by the employee, not the employer. I'm pretty sure that the state (who collects this tax) has not provided any method for the employer to grab onto this with holding.

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