What is the earned income tax (EIT)?

The EIT is a 1% tax on compensation and net profits earned by individuals who live in New Hope or who work in New Hope and pay no earned income tax at their place of residence.

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1. What is the earned income tax (EIT)?
2. How did the earned income tax (EIT) come about?
3. If I already pay the EIT, to another municipality, do I now pay it twice?