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Mon January 11, 2010
Earnings Tax Debated In KC
Kansas City, Mo. – If you live or work in Kansas City, Missouri a 1% earnings tax takes a bite out of your paycheck. The tax has been around for over forty years. But a petition will soon begin circulating around the state, to bring the "e-tax" before all Missouri voters, and possibility outlaw Kansas City, and St. Louis from collecting that type of tax.
Ten city council members sponsored a resolution officially condemning the ballot initiative, saying the city can't operate without the earnings tax revenue. But Mayor Mark Funkhouser said he'd be willing to consider whether the tax is still a good idea.
KCUR's Susan B. Wilson caught up with City Councilwoman Deb Hermann, who explained why she thought repealing the earnings tax would have a negative impact on the city. Hermann is chair of the Finance and Audit Committee.
For the other side of the earnings tax argument, Susan also checked in with political consultant Patrick Tuohey, editor of The Missouri Record. He believes that now is the time to begin looking for alternatives to the earnings tax.