UPPER DARBY, Pa. (CBS) — There’s some strong backlash in Upper Darby Township a day after the mayor’s budget called for a new “earned income tax.”\u00a0<\/p>\n
It’s projected the earned income tax could bring in some $12 million for Upper Darby.<\/p>\n
However, business owners caution it will have a negative impact on a lot of workers.<\/p>\n
The firewood pile is two stories high at Delco Mulch on State Road in Upper Darby and frustration may be higher.<\/p>\n
Owner Carl Hemphill is struggling to understand a recently revealed plan by township officials to create a new 1% earned income tax.\u00a0<\/p>\n
Hemphill said he doesn’t know how he’ll tell employees they’re going to lose an additional 1% from their check.\u00a0<\/p>\n
“Right now, the economy is slowing,” Hemphill said. “It’s the absolute wrong time to raise any taxes. We’re noticing it right now, our phone isn’t ringing like it was a year ago. We’re on a downslope.”<\/p>\n
At a rather contentious budget hearing Wednesday night, Upper Darby officials heard from the public about the mayor’s budget calling for that new tax.<\/p>\n
“What you’re doing is you’re just adding to the burden, you’re adding to everybody’s burden,” an attendee of the hearing said.\u00a0<\/p>\n
The township wants the additional revenue for more police and to freeze property taxes with the new so-called “EIT.”<\/p>\n
The mayor wasn’t available for an interview Thursday but had this to say Wednesday night.\u00a0<\/p>\n
“The goal of implementing the EIT is to diversify our tax revenues and not just rely on property taxes,” Mayor Barbarann Keffer said.\u00a0<\/p>\n
“A one percent additional tax actually could be crippling,” Mike Vraim, of Vraim Funeral Home, said.\u00a0<\/p>\n
Vraim says the new tax could force business and personal decisions of his own. He believes it sends the wrong message.<\/p>\n
“You’ll see a lot of for sale signs, people won’t want to stay in the township if this is where it’s going,” Vraim said.\u00a0<\/p>\n
Vraim added it would be bad for residents and businesses.<\/p>\n
At Wednesday night’s meeting, the proposal was panned by nearly every member of the public and a handful of council members.<\/p>\n
Construction firm owner Bill Santora told CBS Philadelphia he’s concerned for workers in the service industry already struggling.<\/p>\n
“The deli down the street, the Mexican restaurant — where we go all the time — they’ll really be affected,” Santora said. “And nobody realizes that.”<\/p>\n
The township council is set to vote on the EIT on Nov. 29.<\/p>\n
If passed, it would take effect on Jan. 1 could be crippling.<\/p>\n
\n More from CBS News\n <\/p>\n