ST. LOUIS – St. Louis and Kansas City voted overwhelmingly Tuesday night to keep the one percent tax on their cities’ residents’ income known as the earnings tax, which has come under attack from some conservatives in the General Assembly and around the state.
Proposition E in St. Louis passed with more than 72 percent of the vote despite a $2 million effort by political donor and activist Rex Sinquefield, who believes the earnings taxes in St. Louis and Kansas City have a debilitating impact on their cities. Kansas Citians approved their earnings tax by 77 percent.
Politicians from inside both cities have called the decision renew the tax a victory. St. Louis Mayor Francis Slay said in a statement that the approval of Prop E was another tally in the W column for the city. Slay and his Kansas City counterpart, Mayor Sly James, said that the repeal of the earnings tax would take away anywhere from 30 to 40 percent of both cities’ revenue, affecting funding for essential services like fire and police departments.
“There has been a good week of news for City residents. First, NGA; now a resounding victory for Yes on E,” Slay said. “City voters rejected a very dangerous gamble with our public safety and credit rating. The people who helped win tonight – as grassroots as you can get – are now poised to do even more great things.”
Rep. Jeanne Kirkton, D-Webster Groves, represents a district that straddles both St. Louis City and County. She was pleased with last night’s result
“In some ways, I don’t think we can separate the city or the county,” she said. “I’m in the county, but I certainly go to the city… When I go down there, I want to know that I have police and fire protection and things that keep the public safe. And I think most of my constituents would agree with that as well. If you have a failing city, it’s going to ripple effect into the county.
“You’re looking at losing police and fire and a huge dent in funding in St. Louis city, so it’s a major victory. I think the people have spoken, and I would hope that Mr. Sinquefield stops and lets people have local control and decide how they want the tax to fund their needs.”
The night was a rough one for the opposition. Rep. Shamed Dogan, R-Ballwin, an advocate of repealing the earnings tax, said he was disappointed in last night’s result but noted that the voting margin had narrowed since the last election. In 2011, the earnings tax was approved in St. Louis by nearly 90 percent of the vote.
Rep. Kirk Mathews, R-Pacific, managed to get a bill to repeal the earnings tax through the House Emerging Issues Committee, and he agreed that the idea of repeal was gaining ground.
“I think it’s moving in the right direction,” he said. The margin fell from 88 percent to just over 70 percent. I didn’t get a chance to see what voter turnout was, but I still contend most of the people that have to pay the tax don’t get to vote on it.”
Mathews’ bill is expected to be discuss in the House General Laws Committee next week.
