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February 08, 2007

Comments

Mod Dem

Bout time someone other than Funk comes up with an innovative idea. I applaud Klein for out-of-the-box thinking. Reducing/eliminating the earnings tax is long overdue.

try2Bobjective

I think it's a safe campaign promise - he's only committed to have a task force look at it, which leaves him an easy way out, and he's not really committed himself to anything.

The other proposal he has - eliminating a $3M annual portion of this overall tax - is symbolic only. If the $3M is spread across a lot of small businesses, what does it amount to? A $10 to $30 per small business reduction in taxes? I don't know, but I speculate that the positive effect of tax decrease is proportional to the size of the decrease, as it relates to individual small businesses. Insignificant tax decrease, insignificant postive impact on our economy.

I would view the $3M as more credible "symbolic gesture" if there was more science behind the overall direction of removing the tax.

I don't know what everybody else thinks, but when you provide a tax decrease it takes 3-7 years for people to change their behavior (i.e. lag effect of the Reagan tax breaks benefited Clinton). So it will take a number of years before people are attracted back into Kansas City because of the tax.

So, we eliminate the tax (revenue) and have to wait a few years or more until we start seeing the benefits (increased other tax revenue) - so how do we make up the revenue shortfall in the meantime?

Cut costs (significantly) or make it up somewhere else (sigificantly).

Those are the hard questions I want to know before voting to eliminate the tax, and before voting for a candidate who advocates the elimination of said tax. And that assumes that the supply-side reasoning would work at a local-city level.

Man that Henry Klein is a regular George W. Bush.

Of course what Oh Henry doesn't say is how he would make up the $177 million dollar gap that would leave in the budget.

We are borrowing $30 million to address infrastructure needs, is now really the time to start cutting taxes?

Hope you don't like Buses or trash collection or police or fire protection, because under Henry's plan we wouldn't have any of those things.

We don't have enough money to pay for basic things right now...so lets cut taxes. Brilliant!

craig

I still don't understand how this tax is even legal?

The Earnings Tax sucks, but eliminating it would likely break the city (unless we first build up a stronger sales tax base). I don't think it has a major impact on where people choose to live and/or work (if KCMO had great schools, people wouldn't move to and find jobs in JC just to avoid the earnings tax). Overall it doesn't make a huge difference in income because it is deductible forstate and federal tax purposes.

However, elimination of the tax should be studied to see if there is another equitable method to raise funds. A huge jump in property taxes certainly wouldn't please anybody and it lets those who live in suburbs and come to KC off scott free.

There should be a procedure in place that would allow those with incomes under a certain level to get a refund.

dickeylee

If you recind all TIF's granted in the KCMO city limits, and make EVERYONE pay the same property tax rate, yes, even the elderly, you could eliminate the e-tax.

I believe Klein is suggesting a test that would be a $3 million cut for the smallest businesses, at least according to the article. Sounds like a reasonable suggestion to me.

craig

OR,
For people like me, who work, but do not live in KC. Give us a chance to vote in all city elections. Then it is not "taxation without representation".

dh

Want to know why people and business are leaving kansas City , "earnings tax" or should I say legal extortion .

Brandon Boulware

A good idea.

The article says Klein wants to do a test that would cut $3 million worth of taxes on the smallest businesses. Sounds pretty reasonable to me.

I say go for it and reduce/eliminate the e-tax. Make up the revenue with property taxes (greater percentage on land than on improvements). I can think of a couple of ways this could have positive consequences: it would make absentee landlords think twice about owning property in KC and not doing anything with it; it would stabilize revenue; and it would make the citizens more vigilant about tax abatements which right now are handed out willy nilly.
Let me have it.

Bill Dennis

We should keep the E-Tax until we have a good Bi-State Tax. The E-Tax is the only way non-Kansas Citians pay anything for the services the rest of us provide them.

craig

Bill,
What service do you provide me?

NorthlandVoter

Craig,

If you work in our city, you probably drive on our city streets and are kept safe by our firefighters and police officers.

I'm curious (and really don't know the answer). Do people who work in Missouri and live in Kansas pay Missouri state income taxes? Do people who work in Kansas and live in Missouri pay Kansas state income taxes?

I think the Kansas legislature should enact a new tax on any state that taxes Kansas residents that work in another state. That way, all the good Missouri citizens working in Kansas anywhere along the state line can pay a tax to Kansas until this tax to Missouri is repealed on Kansas residents working in Missouri.

billybob

another tax cutter without a brain. Klein probably
failed economics in high school.
supbtract 170 million dollars from the budget and
what do you get? a huge hole.
Now that kansas city has fallen
for the AEG line of b.s. (wait and see...this will cost
k.c. millions when the only events in sprint center
are the ararat clown circus and disney on ice)
and have overbuilt downtwon (one developer said it will
take 5 years for demand to catch up with supply)..
AFTER union station and its huge loses...kc is a
accident waiting.. to happen.
i'm stayin in johnson county. at least our politicians
can count and know how to spend money.
KC IS ON A TERRIBLE PATH (FUNK KNOWS IT) AND NOONE
CAN CORRECT IT.....ITS A MESS AND IT CAN'T BE
CHANGED.
sure...klein lets cut taxes...then kc wont have
even a decent street to drive downtown to the vacant
sprint center!

craig

Northlander,
Your streets probably cost me more money in repair bills than they are worth. And I will give you a small concession on the ff and police. But then why doesn't any other city in the metro area (or any city that I have ever lived in) charge this ridiculous tax?
And yes people that live in one state but work in another have to file state income tax returns in both states.

Bill

Craig,

Do you ever use any of our cultural attractions?

Bill, you'll find Craig isn't very cultural, unless you consider republicanism a cult.

JRH

Dayton Moore for Mayor!

Be cool Billiybob. Your foray in the psychic wonders of fortune telling can only be met with outright resistance.

Quit speculating a negative prophecy less it becomes self fulfilling.

We built an arena. Outstanding! Have you driven by it lately? Downtown is alive my friend.

We passed light rail. Outstanding! Will it take a little time to figure out? Absolutely. But the political will to grow this city is back. The young professionals realize the opportunity we have to make a great home for our families.

Lofts, restaurants, performing arts centers, First Fridays, the only city who has the heart and resolve to keep our professional sports teams world class, KC Scout Highway system, the finest and only WWI museum in the country, Union Station, the Country Club Plaza, on and on...

Do we have problems?

Yup. You bet we do. The schools are desperate. The roads have never met a snow shovel they liked. And our politicians are sometimes petty and fight way too much among themselves.

But I love this city and I see a great future ahead.

I'm not going to point out that JC helped defeat Bi-state and said no to the soccer complex, wait, darn I just did. That's fine. We'll take that too. Bannister mall would be the perfect location.

Nothing ventured nothing gained. Help us make this work. Trust me, we'll all be better for it.

As someone who prepares taxes for a living I can assure you that the earnings tax is the most hated of all taxes. I also work for Sprint and can tell you that when Sprint still had offices on the Missouri side people resisted moving to those offices because of the e-tax. Now that Embarq is looking for a corporate headquarters I have heard many employees say they are praying it doesn't move to KC because of the e-tax.

Say what you will about the e-tax (and personally I LIKE the fact that it forces those who live elsewhere to help support KC), there is little doubt that it hampers us.

Henry Klein should be congratulated for at least raising the issue of trying to find an alternative funding mechanism.

moblogger

I wouldnt worry too much about attracting Sprint or Embarq offices. Everytime you turn around they are laying off more people.

Craig - do you use that "taxation w/o representation" argument when you pay a toll in another city???? When you work in KC you use our streets, parking, dining, water, sewers and if you have an emergency you use our EMT, Fire Dept and police. Why shouldn't you pay for those services? Your office is your home away from home. Pay for what you use.

Craig - do you use that "taxation w/o representation" argument when you pay a toll in another city???? When you work in KC you use our streets, parking, dining, water, sewers and if you have an emergency you use our EMT, Fire Dept and police. Why shouldn't you pay for those services? Your office is your home away from home. Pay for what you use.

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