A heated debate is brewing all over the Lower Merion Township.  Recently, the first public hearing discussing the 2011 budget and taxes in the township took place.  Many citizens came to this meeting hoping to avoid the 12.7 percent real-estate tax increase.  The Main Line Times stated that the meeting went on for five hours where many different people spoke their opinions.  Ten different motions were put forward and Rosenzweig called the board to reduce the proposed budget from 5.5 percent to 1.1 percent in General Expenditures.  This option failed and was followed up by the possibility to reduce the General Fund expenditure to 2.75 percent.  This act also failed.  A reduction in the Equipment Fund and the General Fund reserves was also considered.  However, this could cause a problem in 2014 when the fund could possibly dry up.  Several other options were considered but none of them seemed possible.  When the citizens walked out, the spending proposal had not been altered at all.  There were ten motions suggested by four Republican board members but only one was passed.  This motion was against the new income tax (EIT) that has recently been considered.

Although the idea of an EIT being put into place is not well liked, the 12.7 percent property tax could possibly be even worse.  Already, the property tax has been raised by 2-2.7 percent in the last three years, and citizens do not want it to increase any more.  It is starting to seem that the only other option is the EIT.  However, for some people, this may cost them even more.

In the year of 2003, the same problems were occurring.  The township needed to raise taxes and their first thought was to enact an EIT.  However, in the end, they raised the real-estate tax by 22 percent.  95 percent of municipalities and school districts have an EIT.  The EIT would only be one percent but could cause a great impact.  In the study done in 2002, it was predicted that the EIT could bring in up to 15 million dollars in the first year alone.

The board of commissioners is in the midst of determining whether an EIT should be implemented and how to do so.  The citizens do not seem at all thrilled by this idea.  However, it is most definitely an option.  Cleland, the Lower Merion Township manager does not recommend the earned income tax, however, it may be necessary.  There is a great budget imbalance and it is clear that some change and increase in taxes must be made.  The only other possible option would be a great reduction on the additional expenditure along with cutting back the service-delivery levels.  However, the EIT seems to be a better idea.  Many citizens are very upset about this possibility and it could affect us all tremendously.