Comments on: Earnings Tax, Behind the Music

By: Casey

Casey — Sat, 02 Jan 2010 17:30:39 +0000

In the years since WWII growth has been in the suburbs not only because of the construction of the highways but also because of Federal housing policies that give preference to new properties on the edge over renovating in the middle. The first half of the post war period had extensive systematic discrimination in the real-estate industry, a practice which affected Kansas City more than Johnson County for obvious reasons.

Even though these discriminatory practices have been outlawed for decades, minority neighborhoods still lack investment because of a little game the banking and insurance industries play. The banks don’t like to loan in certain communities because the borrowers have trouble getting insurance. Insurers don’t like to insure in those areas because borrowers can’t get loans.

We can also add to these factors that out here on the planes we have ridiculous amounts of land, and greenfields seem to be the easiest land to develop.

In short, I’d like all of these factors to be accounted for in Kansas City’s economic history before I make decisions or judgments about the earnings tax.

By: Thomas

Thomas — Thu, 31 Dec 2009 16:07:10 +0000

The earnings tax is a tax on jobs. Should we be surprised that since the adoption of the earnings tax we’ve seen much stronger job growth outside of KCMO than inside it? No, we shouldn’t be surprised.

The actual effects of the change aren’t as you suggest. Consider a homeowner with a $100,000 house in KCMO, Jackson County, Grandview school district. That homeowner pays about the $1600 average property tax amount. But–and this is important–only about $275 of that is to KCMO. So even assuming that a 500% increase would be required, it wouldn’t have the effects you suggest.

By: AJ

AJ — Thu, 31 Dec 2009 14:43:21 +0000

Kemper hasn’t worked for UMB in years and I doubt he’s lobbying for UMB on this one. I think he has a general notion that the earnings tax is limiting our ability to attract good employees and in turn, good employers. Not that I totally agree with that notion, but all options should be on the table at this point. We are losing a lot of people to the KS side and as a Missourian it sucks to work on Kansas side of the State Line and watch these revenues get wasted on bad debt. Besides, I don’t think city services could get much worse at this point.

By: The Tax Foundation – New Jersey and New York Counties Rank Highest … | Allegany County NY Real Estate

Thu, 31 Dec 2009 10:59:32 +0000

[...] Earnings Tax, Behind the Music : BlogKC [...]

By: gsp

gsp — Thu, 31 Dec 2009 03:47:55 +0000

maybe because they’re the two biggest cities in the state

By: Are wind power's critics blowing hot air? – DailyFinance | Lewis County NY Real Estate

Thu, 31 Dec 2009 01:18:13 +0000

[...] Earnings Tax, Behind the Music : BlogKC [...]

By: CV

CV — Thu, 31 Dec 2009 00:03:41 +0000

I’d be more than happy to abolish the E-Tax and let people in K.C. pay their own way just like everyone else in the state does who don’t happen to live in K.C. or St. Louis.

You gotta ask yourself why every single municipal entity in the state gets by without having an tax on earnings except those 2 cities.

The E-Tax is just an excuse to waste our money without any repercussions or due diligence in the way they do spend it.