HONESDALE, PA — For all of ten minutes, the Honesdale Borough Council considered enacting an earned income tax (EIT) to fund its proposed 2025 budget. 

Then, in a 4-to-2 split, the council voted not to advertise the EIT proposal, removing the idea from the table for this budget cycle. 

An EIT would tax employees who live and/or work in the borough one percent of their paychecks. The council enacted an EIT in 2023, only to scrap it following public outcry. 

William McAllister, council member and finance committee chair, brought the idea back to the table at a meeting on October 21 at the recommendation of "individuals who are participating in our management program," he said. 

"We happen to be the only county seat [in Pennsylvania] that does not and has not yet enacted said tax," McAllister said. "I basically said, 'If everybody jumps off the cliff, do we go too?' I am not as involved or as ready to adopt that yet; however, it is my obligation to let you as the citizens evaluate whether or not we're going to go in that direction."

In response, Mayor Derek Williams said that the Borough of Honesdale has the highest rate of people who are financially constrained out of all counties in the commonwealth. "That isn't a reason not to consider this, but it is certainly something that would be helpful to factor in."

The borough council ultimately voted not to advertise the EIT proposal, which would have been required for the council to consider enacting it. 

The failure of the EIT proposal means the council will need to make changes to its proposed budget, which will be available for public review starting October 28. 

The EIT would have added $325,000 to the budget, said McAllister. Without that "resource," he will need to make changes to the budget as proposed, he said. 

According to council member Tiffany Rogers, the council does need to look at the problems in the borough, including stormwater infrastructure, that need funding.