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Originally Posted by iheartthed
That's a pretty terrible idea since every economy needs low wage workers, whether or not they directly show up in the bottom line of the tax coffers.
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Supposedly most service workers commute to Monaco from France - probably the most extreme example of this dilemma.
But the whole issue with U.S. cities is that they really don't do much at all. Police, fire, maintain local roads...that's pretty much it. You might hear about other things a city is doing, but as a percentage of their budget, it's tiny. It's often the case that park boards and school boards and transit commissions and the sewer district and the waterworks are technically under the auspices of the city and those budgets can appear in the total city budget, but a mayor and city council usually has no say whatsoever in their budget or affairs. These procedural boundaries differ somewhat from state-to-state but there is almost no such thing as a truly strong mayor anywhere in the United States who lords over the parks, waterworks, airports, etc.
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Do other cities have income taxes on suburban commuters?
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Yes. Ohio cities collect an earnings tax from *all* earnings in a city, irrespective of a worker's residence (even from those who commute into Ohio from bordering states). But this is currently being challenged as work-from-home people are trying to win an exemption.
The "low-tax" states like Tennessee that do not allow municipal earnings taxes make up for it with very high sales taxes (approaching 10% when combined with state/county). Nashville boosters like to cite "low taxes" for that city's boom while completely ignoring languishing Memphis, which enjoys the exact same tax environment.