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Lake County, Indiana, Opposes Income Tax

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Republican Indiana Governor Mitch Daniels’ sweeping re-election victory brings renewed pressure on Northwest Indiana to tighten its economic belt.

In his first term, Daniels’ pushed through a property tax cap that will costs Northwest Indiana cities and towns losing millions in revenue.

So, they’re having to cut expenses.

One way to bring more money in would be for Lake County, Indiana to approve a 1-percent personal income tax. It’s something that Indiana’s 91 other counties have done, but not Lake County. Long-time county commission Gerry Scheub, a Democrat who also won re-election this week, says Lake County should hold the line.

SCHEUB: We’re the only one in the whole state that hasn’t voted to increase taxes and the state is forcing us to because the state doesn’t want to do it. The state has to mandate this or we don’t do it.

Because of Lake’s opposition, the state has withheld $15-million in tax revenue from the county.

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