Assignment task:
The City of Cincinnati Earnings Tax is imposed on employees who work within the city limits and on the residents of the city. The City Tax Department states: "All Cincinnati residents who receive taxable compensation are required to pay the City of Cincinnati income tax at the rate of 1.8% effective 10/02/20. Credit up to 1.8 will be allowed for taxes paid to another locality." The Village of Silverton Earnings Tax is imposed on employees who work within the village limits and on the residents of the village. The Silverton tax code states "The current rate is 1.25% on gross income. Annual filing is mandatory for all residents and businesses no later than April 15th. The village does not provide reciprocity credit for taxes paid by residents to another municipality." In your opinion are the taxpayers who live/work in Silverton/Cincinnati and Cincinnati/Silverton experience equity in the earnings tax? Why or why not?