Monday, April 15, 2019

Kansas City E-Tax Frustration Rises Today



At the outset of Mayor Sly's tenure he talked about reforming KCMO reliance on the earnings tax. 8-years-later the town remains addicted to this supply of cash that mostly confuses nearby suburban residents according to a great deal of social media chatter.

In the lead up to today's tax day last minute rush . . . Locals on across a variety of forums look for help for their tax questions and mostly get HORRIFIC AND COMPLETELY MISTAKEN tax advice.

Accordingly, here's a quick primer on the controversial local levy that always throws off local accounting to Uncle Sam among amateurs:

First a definition of terms . . .

The earnings tax (sometimes referred to as “e-tax”) is a one percent tax on an individual’s earned income such as salaries, wages, commissions, tips and other compensation. It 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 is paid by any business or person who lives or works in Kansas City, Missouri.

Then take a look at online forms.

And before we get too angry at political leaders.

Remember that Kansas City voters have consistently endorsed the E-tax at the ballot box by EPIC margins despite consistent Jeff City & Rex Sinquefield efforts to repeal the tax.

Developing . . .

17 comments:

Joseph said...

The E-Tax is an excellent model of taxation.

1. Doesn’t require hiring a “tax professional”, or buying software to “do your taxes for this year.”
2. Flat tax. Has never been raised in its entire existence.
3. No “tax deadline” April 15 to “get it filed by midnight tonight.” And so “standing in line at the post office so it gets postmarked by midnight.”
4. High income earners still “pay more” than low income earners.
5. The “tax burden” is “shared equally” by everyone who earns an income.
6. Has anyone ever been “audited” over the e-tax?
7. I have never heard a commercial on the radio for “if you owe back e-taxes and are facing wage garnishments and liens, let our tax professionals help you.”

Maybe the states and IRS should take a look?


Anonymous said...

You people will sit there and bitch about a 1% tax, but couldn’t care less about a...
15-20% “earnings tax” you pay to the state
20+% “earnings tax” to Uncle Sam

Anonymous said...

The e-tax is not paid by everyone. Exemptions have been given as part of TIF packages. But city leaders don't tell you about that.

Anonymous said...

The earnings tax is mostly a tax levied by old declining cities that have more than their share of corruption and mismanagement. The bigger problem is the 1% will not be enough to take care of unfunded pensions.

Anonymous said...

The only positive is it forces people like Steve Kraske to put something into the general fund.

Anonymous said...

"The earnings tax is paid by any business or person who lives or works in Kansas City, Missouri."

THIS IS THE BIG LIE!

Example: Do all Burns and McDonnell employees who work in KCMO pay the 1-percent earnings tax? NO THEY DO NOT! For the explanation, ask Sylvester James, Troy Schulte, and Jolie Justus.

Do all of KC's large well-known corporations pay the 1-percent earnings tax? NO THEY DO NOT!

Do all of KC's large politically active law firms pay the 1-percent earnings tax? NO THEY DO NOT!

Does the City of KCMO challenge the above entities and try to collect from them? NO THEY DO NOT!

"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."

This spiel is pure propaganda designed to scare voters into always voting to renew this boondoggle. Reading the passage above, you'd think that KCMO didn't have a General Fund.

KCMO is inefficient, over-taxed, poorly managed, and worse than it's peer cities, because it's led by Liberal Democrats whose answer to everything is to hike taxes.

Traffic Light said...

It Does a very poor job of helping fund basic City services such as repairing roads, weekly trash collection, snow removal but an outstanding job of funding other City needs like developer handouts.

Anonymous said...

KC has no idea how to maintain its income tax base, which has been declining for many years. The earnings tax is just a way to continue to tax former residents. But it also penalizes people who may want to live in the city and businesses who may want to set up shop here. A rational City Hall would want to encourage residents and businesses, not discourage them. Over time, the E-tax will simply make the city's tax base disappear faster.

Anonymous said...

@7:31 AM, you are absolutely right. Our city government does allow certain corporations to keep the money that would be collected by the e-tax on their employees as part of the various financial incentive options the local government gives in an effort to get companies to build here. In other words, it is used to further sweeten the already sticky sweet sweetheart deals most companies get to do business in KCMO. Oh it still comes out of tax payers' checks. But it just gets diverted back to the company to help the company out financially to pay for construction and various other private development financials they should be paying for themselves. Seems fair, right?

#KorruptCity

Anonymous said...

People, the e-tax is a glorified slush fund. Plain and simple. When it was established it was supposed to be a temporary tax. However, when have you ever seen the government on any level give back a free revenue stream fueled by tax payers? That's why it's still around. Yeah, S'lie and other liberals will tell you it's for the greater good like roads, snow removal, trash, etc. However, it's been documented that we divert around $30 million / year to private development as part of TIF and such. And who knows how many other millions of dollars are coming from the general fund to cover costs like parking garages, interest on bonds that the city promised to back, etc. Would we even need TIF if all these corporations and rich folks paid their fair share/paid for their own shit? Of course for that to happen you'd have to have a city government that wasn't bought and paid for by the same entities that reap financial rewards on the backs of tax payers.

#KorruptCity

Anonymous said...

^^blah blah blah.

Truth giver said...

As a KC resident, I'm currently having auto work done in NKC. I use Amazon extensively. I buy groceries in NKC or Gladstone. In other words, the democrapic shitty may ding me for their E-tax slush find and high sales tax rates, but I ding back by avoiding KC retail.

Super Dave said...

Lets just change the name of Kansas City to Tax City Missouri.

Anonymous said...

@10:34 AM

Great response there. Hope you love high taxes and your money going into the pockets of the rich.

DramavilleKC said...

Is there a way to find out who exactly is not paying their fair share too?

DramavilleKC said...

It is taxation without representation. Why do I need to pay for trash services for residents? If I call 911, how long will I wait on hold? I know if I get into an accident in this shithole, most likely some tow truck scammers will try to swoop in and try to hustle me for a $1000 tow.

Oh yeah and about those police and fire services, the worthless dicks at KCPD have never attempted to solve my mother's attempted murder. So yeah, I really do not count on receiving actual real police and fire services.

Anonymous said...

^^Did you call them to find out shit-for-brains? If not, why not? Lazy? Stupid? Both? Or most likely you really don't give a shit? Likely.