KC Earnings Tax Needs to Go
It’s time to get rid of the slush fund of tax dollars in KCMO.
Important facts to consider before you go to the polls on April 7th.
Kansas City’s 1% Earnings Tax (E-Tax) generates roughly $350+ million per year and makes up about 44–47% of the city’s General Fund.
That money goes straight into the General Fund, which means City Hall can spend it on almost anything approved in the budget.
Yes, some of it funds essential services like:
• Police
• Fire
• Trash pickup
• Street maintenance
• Snow removal
But the same pool of taxpayer money is also used for things like:
• Consultant studies and planning reports
• Legal costs and settlements when the city loses lawsuits
• Economic development studies and corridor redesign plans
• Outside consultants hired by the city
• Non-profit contracts and grant programs
• Pilot programs, advisory boards, and administrative expansion
When the voters reject the E-Tax, it does NOT disappear overnight. Missouri law requires a 10-year phase-out, reducing the tax slightly each year until it reaches zero.
Year 1 – 1.0%
Year 2 – 0.9%
Year 3 – 0.8%
Year 4 – 0.7%
Year 5 – 0.6%
Year 6 – 0.5%
Year 7 – 0.4%
Year 8 – 0.3%
Year 9 – 0.2%
Year 10 – 0.1%
Year 11 – 0%
That means the city would have an entire decade to adjust spending and restructure its budget as theu should.
Instead of losing $350 million overnight, the reduction would happen gradually.
That gives city leadership time to:
• Set real spending priorities
• Reduce unnecessary studies and consultants
• Evaluate programs that are not producing results
• Make real budgeting decisions
Kansas City and Missouri also collect millions from casino taxes, cigarette taxes, and marijuana taxes every year.
Those taxes were sold to voters as ways to help fund schools, infrastructure, and public programs.
When you add those revenues on top of the taxes we already pay, it’s fair for taxpayers to expect transparency and responsible budgeting.
Taxpayers deserve honest conversations about how their money is being spent.
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