Kansas City Responds to Legislation Against Earnings Tax

Dec 3, 2015

Kansas City civic and business leaders say a Missouri lawmaker's effort to eliminate the city's earning tax would decimate the city's budget if it succeeds.

Missouri Sen. Kurt Schafer pre-filed a bill Tuesday that would eliminate the earnings taxes in Kansas City and St. Louis. He says the tax is outdated and "clearly unconstitutional."

In a public statement issued Wednesday, Mayor Sly James and business leaders said Schafer's bill is based on incorrect legal reasoning and is state government interference with local control.

The 1 percent earnings and corporate profits tax generated nearly $234 million in the fiscal year that ended April 30.

The Kansas City Star reports many Kansas City political leaders don't expect Schaefer's bill to get much traction in the next session.