Despite the location of Simon Property Group’s tax-subsidized headquarters in Indianapolis, Marion County income tax coffers will see little impact from David Simon’s compensation. First, $132 million of his pay is in the form of stock options that are not subject to local income taxes.
Secondly, little of the applicable local income taxes will be collected in Indianapolis. The vast majority of local income taxes on Simon’s $1.25 million annual salary will go to Hamilton County, where he lives. Many other Marion County workers also reside outside the city.
Economic development efforts in Indianapolis should be focused on creating jobs that result in Marion County wage earners and income taxpayers. Property tax caps written into the state constitution have caused a $366 million loss to Marion County government, resulting in a greater dependence on local income taxes. Without the income tax of folks who spend their work days here, it will be increasingly difficult to provide essential city services, like public safety, to residents’ homes.
councilor, District 16, City-County Council