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Norwalk California online Form 1065 (Schedule M-3): What You Should Know

Page 13)  It states that it is unlikely that revenues will go higher than the budget. But it does  also state that, due to the uncertainties, the final budget will be affected by “discounts that are inherent in tax planning strategies.” (page 14) In other words, Norwalk isn't promising that its budget will be exactly at the forecasted amount. Norwegians have known about the  debt-reducing reforms  since September 2011. So the tax reform package will have a big impact on the Norwalk city budget. (Norwalk Mayor David Keating has said there are several changes coming for residents to take advantage of.) But if Norwalk does increase taxes (as promised), taxpayers who earn more than 200,000 (a category that includes about 60% of Norwalk's population) will pay about 2.6% more in taxes in 2024 than they would otherwise pay. That's not much of a tax increase — it is far less than the nearly 4% increase from 2024 to 2024 and is just 1 percentage point more than the current tax rate. If Norwalk did not decrease taxes it would increase the tax rate in 2024 from about 16.4% to 16.6%. Taxes on the first 50,000 of taxable income of Norwegians with a taxable income above 200,000 will be reduced to 6.2%, down from the 7.5% rate in 2017. That's less than a quarter percent tax reduction. Norwalk did cut taxes on the first 50,000 of taxable income of Norwegians making more than 200,000 (from 150,000 in 2024 to 100,000 in 2018),  but that reduction will result in a tax increase on only 25,000 Norwegians — or 1%;  (1.06% more per tax dollar.) This is because the Norwalk City Council passed the budget increase over the objections of the Norwalk school board and Mayor David Keating. Norwalk Mayor David Keating called the school board's opposition to budget reduction, “political interference and interference by the School Board's President on behalf of the public that's in their own best interest.

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