Kansas City responds to legislation against earnings tax

2 years 11 months 2 weeks ago Thursday, December 03 2015 Dec 3, 2015 Thursday, December 03, 2015 12:56:34 PM CST December 03, 2015 in News
By: The Associated Press

KANSAS CITY (AP) — 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 He says the tax is outdated and "clearly unconstitutional."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 reported many Kansas City political leaders don't expect Schaefer's bill to get much traction in the next session.

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