Axing city income tax is not an option

The question of Hamtramck having an income tax once again popped up at a recent city council meeting.
One resident, who has lived here for several years, said he was surprised to find out the city has an income tax, and stressed that folks here are too low-income to afford it.
Hamtramck is one of 24 communities in the state to have an income tax.
Decades ago, city officials petitioned the state to impose an income tax because Hamtramck was in financial crisis after major manufacturing closed up here – thus leaving the city with a huge financial hole.
This has played out in dozens of other financially distressed communities – including our neighbors Detroit and Highland Park — who fell on hard times with the loss of a tax-paying manufacturing base.
In Hamtramck, the income tax generates about $6 million a year – which is a pretty big chunk of change. And, considering the city’s annual budget is around $20 million a year, eliminating the income tax revenue would be devastating.
Simply put, Hamtramck can’t afford to get rid of its income tax.
For those who find paying an income tax unaffordable and think it would be cheaper to live in the suburbs, guess again. You would get clobbered by property taxes.
Yeah, no one likes paying taxes, but it is what keeps our communities going, and able to provide essential services.
Posted Jan. 31, 2025