This post is a simple explanation of a Kansas City election issue and an item currently encountering debate among the Missouri General Assembly.
Normally, we hate ANY credence or time given to NOOBS but given that the overwhelming majority of people in Kansas City stopped voting and local media is nothing more than a vast array political talking points and doggies stories . . . Consider this guide a public service.
We're trying to be as objective as possible but overall OUR BLOG COMMUNITY HAS ALREADY TOLD US that most readers do not favor a renewal of the E-Tax.
So, keep our penchant for hotness and critical thinking in mind and here goes . . .
What is the Kansas City Earnings Tax?
Here's how City Hall defines it:
"The earnings tax generates revenue that pays for a wide variety of basic city services used by all those who live and work in Kansas City, Missouri. In addition to helping fund basic city services such as repairing roads and weekly trash collection, the revenue from the earnings tax also pays for police officers, fire fighters, paramedics and ambulance services. Revenue from the earnings tax also helps fund snow removal, codes inspection, historic preservation and other city needs.
The earnings tax generates approximately $220 million dollars annually and is paid by any business or person who lives or works in Kansas City, Missouri."
Basically, it's a 1% levy on the earnings of anybody earning a living by working in KCMO.
Here's a recent statement from Mayor James about the e-tax and his pitch to keep it:
“The earnings tax is an essential and fundamentally sound tax policy that the citizens of Kansas City have embraced for half a century,” James said in testimony prepared for delivery to the Missouri Senate Ways and Means Committee at the State Capitol in Jefferson City. “It’s a bleak future without the Kansas City earnings tax.”
James told lawmakers that the earnings tax brings in $230 million of Kansas City’s $533 million General Fund, 74 percent of which supports public safety, including salaries of police officers and firefighters. The bill would require reduction of 810 police officers, 550 firefighters and another 370 civilian, public-safety employees, James said.
James added that the bill also would force the city to cut another 510 non-public safety positions.
The tax is a constant target of criticism in Johnson County given that so many residents of that nearby community live in suburbs with better schools but still commute to Kansas City Proper for work.
Why are Missouri Republicans working to overturn the earnings taxes in Kansas City and St. Louis?
There are a lot of reasons for that . . . Here's the yearbook answer:
Last year a Supreme Court case called earnings taxes into question . . . This is complicated stuff, and it's up for another challenge soon, but here's the simplest way to put it:
"The court issued a ruling that double taxation is unconstitutional, making it illegal for two states to tax the same income . . . A brief filed with the court said the ruling could affect Kansas City’s earnings tax, but a city spokesman said that opinion is wrong and the city’s legal team thinks the tax will survive."
Since that time . . . Missouri Sen. Kurt Schaefer has filed a bill to eliminate the e-tax. Currently, the E-tax is subject to an election every 5 years - An effort that stems from billionaire Rex Sinquefield, successfully leading a statewide effort to force elections in Kansas City and St. Louis to ask voters to repeal the earnings tax.
During this campaign cycle, Sen. Schaefer has already secured $500K from Sinquefield in a bid for Missouri Attorney General.
Also the overriding sentiment from Missouri Republicans is that the E-Tax is unconstitutional in the advent of the recent SCOTUS ruling.
Behind the scenes, Mayor Sly James has been increasingly at odds with Republicans in Missouri. Kansas City's Mayoral administration has lashed out at the Missouri GOP over the topic of gun control and the animosity has now created a clear cut case of political payback during this e-tax debate.
Do I get to vote on the Kansas City Earnings Tax issue???
Yes. As with most things in Jeff City . . . Nothing might result from all of these Missouri power plays and political chest thumping.
However . . .
A Kansas City Earnings Tax election is scheduled for Tuesday, April 5, 2016.
An army of Kansas City political consultants have been recruited to push the e-tax effort that WON by an 80% margin 5 years ago in 2011 and at this point there is no organized opposition against the tax despite many criticisms against the constant city hall TIF and development deals which contradict claims of financial hardships politicos mention when talking about how desperately the city needs e-tax cash.
For the most part are the basics of the argument . . . With a little bit of TKC perspectives, insight and AWESOME that other newsies are too scared to share.
You decide . . .
Just another fight over money, story of the world so far.
ReplyDeleteIt all comes down to a simple question. Do you want to pay now or pay later? If you get rid of the etax, city hall will just pass more sales and property taxes!
ReplyDelete^^^^^^^^^^
ReplyDeleteIsn't that tantamount to extortion?
Taxes on the billions of dollars in new apartment buildings that the streetcar brought should more than make up for the loss of the earning tax.
ReplyDeleteIf you have not figured it out yet, the e tax and sales taxes shifts the burden away from property developers and speculators to the average person who might or might not own property in KC. The city government along with the fire and police dept. are really more concerned with protecting and promoting property than our lives, therefore the developers and speculators should pay their full share for these services.
ReplyDeleteetax = nigger in office pocket money.
ReplyDeleteWhat is the earnings tax? Naturally, in Kansas City it doesn't matter what it is or was intended for, it doesn't get used for its stated purpose. What it has become is a windfall for various organizations, groups, grifters and hangers-on. The citizens of this town have been made to suffer with a over-the-top water tax that the City passes off as a service fee (without providing a true service), snow removal is deplorable, you're lucky if your trash gets picked up on a consistent basis, the City destroys neighborhoods in the name of community while simultaneously suggesting that the mass demolition is for the public good, police department has less than 50% clearance rate on crimes, and the school system is used to promote racial segregation. This racist, backwards town is headed down the path of bankruptcy and taxpayers should no longer fund their wild spending and mismanagement of public funds. Vote "Fuck No" on e-tax and force the City manager to come up with ways to fund basic services. City is not intended to be in the economic development business. Leave it to the professionals!
ReplyDeleteName a tax that people like?
ReplyDeleteI suspect that those in KC who oppose the e-tax most strongly aren't concerned with the effect of dropping it would have on property taxes. Do all the opponents still live with their parents?
ReplyDeleteNope, but all of its supporters do. Get a life asshole. You have no grasp on reality. STFU, 9:25 and 9:05 is likely Pat Klein. You are a hateful troll!!!
DeleteNot about hate cause that comes with any tax. It is what you get for the money. Bad roads, worse snow removal, LOUSY schools, no infrastructure improvements, out of touch policy chief, HIGH CRIME, etc... Meanwhile sly decides to give away potential tax revenue to millionaire, billionaire development companies, and Forte thinks the root of all crime is abandoned houses. Ironic how liberal government decries income inequality while taking money from working people while giving breaks to money people.
ReplyDeleteIf the E-tax is so essential how do the dozens of cities the size of Kansas City get by without an earnings tax? If the E-tax is so essential why are most of the cities nationwide who have an E-tax in decline?
ReplyDeleteVote NO on the e-tax!!!!
ReplyDeleteSomething has to get the attention of the Crime Machine at City Hall.
Also take a close look at the numbers that Troy and Sly have put together.
Compare the numbers to what is actually in the City's budget by revenue stream.There is plenty of slush money in the e-tax dollars. Let"s have an accounting of the e-tax dollars by an independent body.......
Never trust numbers presented by Troy,
"Funds basic service" like $18 million for 18th and Vine. "Pays for historic preservation" like the soon to be destroyed Nellie Peters Plaza apartments.
ReplyDeleteYet they keep lowering and lowering property taxes in the downtown TDD since the downtown choo choo train was "voted" in to retain all the so called hip and ritzy people and rising stars who keep this whole Frosty image facade propped up from leaving.
ReplyDeleteDon't believe it do some research or ask Staubio. Maybe he can give everyone some tips on how to get your property taxes lowered if you don't live in the TDD district.
GE to sell appliances business to China's Haier for $5.4 billion
ReplyDeleteMaybe Sly can sell Kansas City to some outfit in China.
US Stocks Sell Off Amid a World-Wide Rout
ReplyDeleteEarnings tax or not my advise is prepare for the worst folks.
There is only one place this sucker can go and that is DOWN.
Fuck KCMO and their tax..
ReplyDelete
ReplyDeleteThe etax is nothing less than a filthy shakedown practiced by a perennially crooked slumlord/developer regime against its neighbors who long ago fled KCMO for surrounding counties in the interest of their personal safety and quality of life.
From its start, the etax was (and still is) a KCMO scheme to punish Joco and the other suburban counties for becoming more desirable places to live. Also to make up for the obvious fact that too many KC properties and residents are too economically stressed to pay enough taxes to run a city government.
We're doomed if the earnings tax fails. I'm a supporter.
ReplyDelete12:29 bandwagon supporter, that is.
DeleteI like the earnings tax, so once again, your use of "everyone" is not correct.
ReplyDeleteI forget you can say anything you want on the internet.
Sorry.
12:31, you can say anything you want anywhere, not just on the internet.
ReplyDeleteI work in KC, MO but live in Kansas and hate this tax but if you live in Kansas you cannot even vote on whether or not to keep it.
ReplyDeleteSinguefield has paid out more money to avoid paying taxes than he would of in taxes.
ReplyDeleteI have never understood why rich people whine so much about paying taxes. Rich man minus taxes paid equals rich man. What part of this does he not understand?
I received my Form SSA-1099, yesterday.
Box 3: Benefits paid in 2015 $11,184.
To every one who whines about my winning my disability case: FUCK YOU.
Troy's numbers are bogus!!!!!!
ReplyDeleteWe don't whine Byron. We just point out the fact that you're not disabled. You're a fraud. And not a very successful. Enjoy your pathetic life.
ReplyDeleteThe retiring Federal Reserve KC Chairman talked to the downtown Rotary Club three years ago and recommended that the City do away with the earning tax. ing
ReplyDeleteThe e-tax brings in 220 million out of the 1.2 billion budget. Assume you could save 100 million a year by right sizing, you would have to make up the difference with sales and property taxes.
What is the big deal???
Or 2:04, instead of raising taxes be forced to reduce pork spending and stop acting like an entitled white man who just inherited his dads business, running it into the ground only to see his dads hard work be for naught. KC needs to refocus when the etax is eliminated. No, every polticians best friend, mother, sister, brother, cousin, aunt or uncle can't work for the City. Cuts have to be made and start with all the Asststant City Mangers (that's probably 1/2 mil there, at least), then fire the unnecessary amount of consultants (aka former Councilmembers, Mayors, etc - that's 5 mil at least) and keep working from there. That shortfall will be a surplus in no time.
Delete@ 1:13 pm: And if you live in MO and work in KS, you get to pay income taxes in KS... and not vote on it.
ReplyDeleteThe e-tax is a political slush fund. Vote no.
ReplyDeleteIf City Hall would make the long overdue cuts in KCFD, we can get along fine without the earnings tax.
ReplyDeleteI would love to see 810 officers cut, you would end up with about 46 officers working total :)
ReplyDeleteGosh Byron 11K for not doing a god damn thing all day. No need to thank us working people that paid you that 11k you lousy excuse for a human.
ReplyDeleteNot to mention the likelihood of free welfare internet service so he can troll in a city that he has nothing to do with.
DeleteVOTE NO ON E TAX
ReplyDeletePUT up vote NO signs
Put up Vote NO signs on buildings on interstate and in front yards.
Write to the newspaper opinion is NO
Advertise VOTE NO
Taxation without representation. KCMO needs to de-annex some of the city, raise property taxes and sales taxes. Or every city should charge an e-tax and for those with a KCMO address add 1%.
ReplyDeleteI have to pay this tax but I don't live in KC, how do I vote on this?
ReplyDeleteI have to ask the question - they insist that the etax goes to fund police fire ambulance road etc etc - then as a resident of KCMO what the hell is my Kansas City MO property tax paying for?
ReplyDeleteWow! The hate and vitriol espoused about this tax, is almost as disgusting as the sheer amount of misinformation. Without the e tax things will become pretty bleak in KC and it won't be long before we are another Detroit. Many people are saying the same thing here "what are my property taxes paying for?" Well some goes to the county and the rest goes to
ReplyDeleteParks, health programs, and stuff the tax does, but the problem is they don't raise enough to pay for everything. So why not raise property taxes- well you can't. Property taxes are limited by the state. Additionally if property taxes get higher in KCMO than surrounding cities, people will move to lees summit and blue springs to pay lower property taxes which means the city will earn even less money while still having to supply similar amounts of services. And with people moving away the property values will plummet and there is even less money. So you can suck it up and shell out 1% of your earnings (400 annually on a 40000 salary) or watch all the things you are complaining about get even worse, and likely loose the royals, & the Chiefs.
Everybody is against the e-tax but last time it was up for vote it passed ! I hate it all it is is stealing. Get rid of the damn thing. If kcmo new how to budget their money they wouldn't need an e-tax. Show up and vote " no " we can make it a voluntary tax and the people that want it can give their paychecks to sly. I wouldn't have a problem with that at all.
ReplyDeletethe city is giving away dollars to get rich out of town business to come here and develope, why not remove e tax and stop the huge amounts of money given to tif. city would have more than enough to operate on. have some balance and manage prudently. NO on E TAX and force the city to be more creative in bugeting.
ReplyDeletePlease vote no. This is a unfair tax with no thought to the poor or low wage earners. Raise sales tax and you decide what you pay instead of city government. I believe that all the people who have to pay should get a say and the people who do not pay should not get a say.
ReplyDeleteKansas City Mayor Sly James says that people not living in the city limits but work in our city pay roughly half of the e tax. Why not increase the tax to 2% and apply the full amount to the non residents who work here thus eliminating the Kansas City tax payers the burden of the e tax. When I vacation in Florida I pay a lot in tourism taxes so the residents do not have to pay state tax there. Problem solved. If you want to work in our city you need to pay your fair share.
ReplyDelete