Monday, September 27, 2010

Elephant in the room

Missouri voters will soon have their say on the Kansas City and St. Louis earnings taxes. Efforts are afoot to abolish the taxes. Some say elimination of the taxes will make both cities more competitive.

Here are a couple of questions for those for and against the earnings tax. To non- city residents and business owners: If the city of St. Louis abolished the earnings tax, would you be more or less likely to move your business or personal residence to the city of St. Louis?

With a 1/3 drop in general revenue to result from a loss of the earnings tax, city services are likely going to be reduced. Due to declining revenues, services in the city are already being cut back. Residents are now paying for trash service once considered "free" (covered by already collected city taxes).

So, here's the second question. To non-city residents and business owners: With a smaller government offering fewer services, would you be more or less likely to move your business or personal residence to the City of St. Louis?

Here's a third question, to current city residents: With fewer city services being provided as a result of a loss of the earnings tax, would you be more or less likely to move out of the City of St. Louis?

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