Prop A: The Earning Tax Measure

After the court decision yesterday defeating Kansas City's effort to keep Mo. Proposition A from being on ballots across the Show Me State, the campaigning has already started. Legally, the cities of Kansas City and St. Louis cannot campaign, but union organizations and other political groups have already come out against the proposition. There's a healthy pro camp too, looking to remove this tax that many feel is a minus point when people consider doing business in Kansas City, MO.

Just so you know what all the flap doodle is about, here is the text of the proposition (source: http://www.letvotersdecide.com/)

Proposition A

[Proposed by Initiative Petition]

Shall Missouri law be amended to:

• repeal the authority of certain cities to use earnings taxes to fund their budgets;

• require voters in cities that currently have an earnings tax to approve continuation of such tax at the next general municipal election and at an election held every 5 years thereafter;

• require any current earnings tax that is not approved by the voters to be phased out over a period of 10 years; and

• prohibit any city from adding a new earnings tax to fund their budget?

Fair Ballot Language:

A “yes” vote will amend Missouri law to repeal the authority of certain cities to use earnings taxes to fund their budgets. The amendment further requires voters in cities that currently have an earnings tax, St. Louis and Kansas City, to approve continuation of such tax at the next general municipal election and at an election held every five years or to phase out the tax over a period of ten years.

A “no” vote will not change the current Missouri law regarding earnings taxes.

If passed, this measure will impact taxes by removing the ability of cities to fund their budgets through earnings taxes. The only exception is that voters in cities that currently have an earnings tax may vote to continue such taxes.

Basically, a victory for the "yes" vote will bring about a Spring time referendum in St. Louis and Kansas City on the respective cities' earning taxes. If voted down, it would take a vote to restore the tax. If voters consent to have the tax continued, there would be a vote on it again in five years, and every five years after as long as the tax is in force.

It is said that the earnings tax brings in about $200 million dollars to the general budget of Kansas City, MO and helps pay for all manner of city services. I have seen numbers from 10% to 40% of Kansas City's budget is made up of money from the earnings tax. If the earnings tax is discontinued, it will be phased out over 10 years.

Those are the bare facts. Now, let the campaigning--and spinning--begin.