A proposal calling for the enactment of an earned income tax (EIT) in Upper Darby Township is receiving a cold reception from local businesses and residents. The proposal, included in Mayor Barbarann Keffer’s 2024 budget, estimates an EIT could generate approximately $12 million in annual revenue for the township. An EIT is a tax on the money received as pay for work performed, such as wages, salaries, bonuses, commissions, tips and net earnings from self-employment. It can also include long-term disability, union strike benefits and, in some cases, payments from certain deferred retirement compensation arrangements. At a contentious budget hearing, Upper Darby officials heard from both residents and local business leaders who are opposed to the new tax. Business owners caution that the tax would have a negative impact on many workers in the township. "The goal of implementing the EIT is to diversify our tax revenues and not just rely on property taxes," Mayor Keffer said. The township council is set to vote on the EIT on Wednesday, Nov. 29. If passed, the new tax would take effect on Jan. 1.
Source: CBS 3; 11/17/2023