Amelia residents got rid of their 119-year-old village to save it from tax

The residents of Amelia, Cincinnati have been consumed by a heated debate over a proposal to impose a new local tax of just 1 per cent. But this year, voters found a new way by getting rid of their 119-year-old village altogether. The dramatic move has come into effect this week that reflects the small-government that spreads through Amelia, a conservative community of 5,000 people where the median household income is $61,500.

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Residents reluctant to hand over paychecks

Many residents are reluctant to hand over the paychecks to the government. A political science professor, William Howell at the University of Chicago said that eliminating a layer of government could result in greater efficiency. He said that this kind of violent reaction against the introduction of a 1 per cent tax suggests a big aversion to government generally. The village was established in 1900 and is being split in half. The residents who live one side of Main Street will belong to one township and the neighbours across the street belong to others.

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Village council decided to impose 1% tax

It all started the previous year when the village council decided to impose 1 per cent tax levy on all residents and employees. Most of the Americans do not pay any local income taxes but the practice is very common in parts of the east coast and Midwest, particularly Ohio where more than 600 municipalities have an income tax to help pay for local services. The villagers have threatened to boycott the business and anonymous letters showed up in mailboxes forcing the residents the defend their village. An average couple in Amelia was already paying about $1,400 in state income tax, $780 in-state sales tax and $3,300 in property taxes, according to the Tax Foundation in Washington. The mayor added that they needed the money to help pay for roads and other expenses.

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