The City is making its annual push for e-tax payment with a bit more zeal this year.
Accordingly . . .
KANSAS CITY INSIDERS WANT TO REMIND VOTERS TO ASK: WHO ISN'T PAYING THE E-TAX?!?!?
Already we know . . .
- Clever accountants hiding capital gains can avoid the E-tax for their 1% clients.
- A great many local TIF projects don't require employee e-tax as one of many incentives.
- And of course, let's not forget that non-residents can apply for an e-tax refund or discount for days they worked outside of the city limits.
The list doesn't stop there but it's a good place to start as Kansas City gets ready to begin yet another e-tax push was this broke-ass town seems much less enamored of local leaders who are cutting services and directing a great many resources to their favorite pet projects.
Developing . . .
Too bad this won't go to pay for more police like they said it would!
ReplyDeleteVoting.Against.E-Tax.This.Time.Around.
ReplyDelete"Clever accountants hiding capital gains can avoid the E-tax for their 1% clients." You don't have to be a clever accountant to know that the earnings tax only applies to earned income (wages, for individuals) and not to investment income.
ReplyDeleteRegardless, it is more honest to refer to the earnings tax as a live here/work here penalty. The purpose of the tax must be to discourage individuals and businesses from locating in KCMO, because that is its effect.
E tax also does not apply to rent collected. If it applied to cap gains and dividends all investors would move away. You don't have to be a 1%er to have investment income.
ReplyDeleteAnother penalty for KC residents.
ReplyDelete9:11 The 1% etax is the greatest attack on wealth creation this city could impose. This ensures lower income folks will have a difficult time ever rising the American Ladder.
ReplyDelete1% is a HUGE amount. If that same 1% were instead re-invested in a high yield (high risk) etf earning 8% interest. The average poor person earning 25k a year, working for 40 years, would have an extra 73k in their retirement.
The E-tax is billed as some small "1%" tax, but in reality that 1% is HUGE. The City and those campaigning for the E-tax take advantage of the fact that the average voter does not have proficient math skill, and does not understand the impact 1% really has.
I'm not a math genius, but $50,000 x .01 or 1% of $50,000 is a grand total of $500. Far from huge dude. Just so you know
DeleteEinstein's compounded interest theory makes that 1% on $50G ....$o $weeeet after 30+ years...REALLY!!!!!
DeleteThe e-tax is used for services such as neighborhood maintenance, sidewalk maintenance, free trash, fountain maintenance... Etc.
ReplyDeleteWait, trash isn't free, neighborhoods have to take cAre of their own landscaping and sidewalks have to be paid for by homeowners....
So where does the money go? The general fund, where $ can be appropriated for any project or kickback.
Its hard to run a counter campaign using math because its not sexy.
ReplyDeleteMaybe tell people that over their lifetime in KC, the E-tax will cost the average low income earner 4-5 years of retirement. 73k would cover 3 years, supplemented by SS extends that 73k over 4-6 years.
Tell people that I bet the e-tax fails.
Come to PV where it's safe and we actually have good schools - and provide services without collecting 1% of your income. Unions don't rule City Hall and the Fire dept.
ReplyDeleteNo but they do rule you PD Mr. Village.
ReplyDeleteWell, what do you DULLARDS think?
ReplyDeleteGonna fall for the mass mailings showing the FLATLINNG EKG and threats of emergency services nit reaching grandma in time?
I reckon you GULLIBLE DOLTS will fall for the fear tactics again and say yes to an extension.
10:54 who are you talking to? There is not one comment in support of the e-tax............... Are you talking to mystical unicorns?
ReplyDeleteI'm talking to all of the HAYSEED RUBES who are reading this but not commenting in favor of the tax.
ReplyDeleteThe same dunderheads who overwhelmingly gave city hall the message that they had carte blanche to send Cindy to Milan, only the latest in examples of horrible and wasteful decisions.
If you are against the e-tax then I commend you in being several standard deviations above the intellectual norm in this cornfed land o' BUMPKIN YOKELS.
gotcha
ReplyDeleteYou can't win this as they have a provision to simplely raise the property tax to make up the difference.
ReplyDeleteVOTE NO on the E TAX
ReplyDelete1% is huge given that it is 1% of gross earnings. Also with other taxes such as federal income tax, property tax, health insurance tax (thanks Obama / Democrats), sales tax at 9%, we are already being robbed at every turn.
ReplyDeleteDon't give this city another dime until it can demonstrate that it won't waste it on pet projects that do less than nothing for the local economy.
Actually 1:25 this is the beauty of compound interest. Using my numbers from 9:29a.
ReplyDeleteAnnual E-taxable income = 25,000
E-tax = 1% (.01)
Starting principal = $500
Years till retirement = 40
monthly contribution = $20.84
So assuming you get paid monthly, and you invest the 1% you would be paying the etax into an etf yielding 8% (this would most likely be a high risk etf) and keep putting that 1% in for 40 years, after 40 years you would have $75,616.03
That is based on 25,000 annual salary. You were talking 50,000, so assuming the same factors above we are talking 150,000 dollars you would have.
So while 500 seems like not much, it really is ALOT. Over a persons career it equates to about 3-5 years worth of retirement. Wouldn't you like to retire with 3-5 extra years of income? This is where people get screwed on retirement, they don't understand the BEAUTY of compound interest. Just $20 a month starting the first year you begin to work equates to over 75k when you retire. Crazy, huh?
You didn't take into account inflation.
DeleteHe or she didn't take into account annual pay raises either. Factoring raises against inflation, reasoning a wash between the two, seems acceptable for the point he or she w as making. In fact the author is probably low baking the number a little bit since raises usually outpace inflation. So ask in all the point stand s in my opinion.
DeleteSo while a person making 25k would only pay $9600 dollars in e-tax over a 40 year career, that same $9600 put to work in an investment would equal $75,000
ReplyDeleteMaybe change the name from Earning Tax to Taxpayer Philanthropist Donation at least so we don't feel like we're being screwed as badly.
ReplyDeleteEarnings taxes are designed for cities where people are forced to work, but choose not to live in.
ReplyDeleteIf you don't believe that, just ask all the federal and state employees who are dumped into half-empty downtown office buildings.
Just that simple.
Did the taxpayers ever get a chance to see Lil' Cindy Circo's vacation photos that they paid for?
ReplyDeleteYou know, while she was in Milan drumming up all that international business for KC.
A vote against the e-tax makes certain that Kansas City is headed for bankruptcy. We need a do-over. The City is run by retards and I support doing away with the tax even if that means bankruptcy, which it does.
ReplyDelete"raises usually outpace inflation"
ReplyDeleteMaybe circa 1985 this was the case but here in the real world wages have been stagnant for decades.
City might be able to gain some substantial revenue cracking down on people (kids) who keep their cars registered in Kansas after they've moved to CKMO also.
ReplyDeleteThat's the state, not the city.
Delete4:31pm - I am going register my next car at my sister's JoCo address. Car insurance is half.
ReplyDelete942, that's not called saving money. That sometimes is called "fraud".
Delete10:21 Fraud is the Kansas City Missouri Water Department and billing system. There's no good, known reason why water bills have tripled in the last 4-6 years. It's ridiculous. The water ain't that good!
ReplyDeleteAnd how does the City justify charge fees on vacant houses for water services that haven't been used in years?
Yet the tax burden is still LOWER THAN JOHNSON COUNTY...
ReplyDeleteMaybe they should tax crocodile tears on tonys joco blog.
Better idea:
RAISE THE ETAX TO 1.5%
^ and it's a flat tax, which is what the America-haters...uh, I mean, the "conservatives" have been arguing for since Perot. Everything you want from the tax code, you get in a simple, easy, fair E Tax.
ReplyDeleteAnd there is not a single business or resident worth having who makes tier decisions based on the E Tax. Total red herring.
“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” -- Albert Einstein
ReplyDelete7:27 I won't argue with anything you said at the begining of your post. I agree with most of it.
ReplyDeleteBUT>>> "there is not a single business or resident worth having who makes tier decisions based on the E Tax. Total red herring." >>>> I TOTALLY DISAGREE WITH YOU HERE. these are the thoughtful, economically aware people we need in Kansas City. That are makers not takers.
I think it would be funny if the people of KC voted out the etax just to see how the crooks at City Hall will pay for their pet projects and keep the city running at the same time. They'll really have to keep their elite visitors out of a lot more areas. That ought to keep them on their toes.
ReplyDelete