There exists a clearly and amply documented need for an alternative to the property tax as a means of supporting public education, and many fiscal experts have expressed themselves in favor of the municipal income tax as a recourse. This analysis attempts to demonstrate that since additional revenues are needed for local governments and an inequitable and destructive revenue system is urgently in need of reform, the optimum solution to the property tax dilemma may be the municipal income tax. Following an introductory discussion of the concept of taxation equity in terms of the "benefit received" and "ability to pay" principles, the discussion explores the relevance of these principles to the financing of public education. A summary description of the municipal income tax recounts its history, describes its characteristics, and discusses its probable future. A list of findings and recommendations resulting from analysis of existing local income taxes, review of relevant literature, and consideration of the community needs and characteristics is provided. (Author)