July 29, 2010
CITY TAXES ELSEWHERE: St Louis Residents Consider Repealing Earnings Tax
Kansas City Loses Tax Tapes
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – St. Louis has a one percent earning tax. It’s also a city mentioned by Marshall University President Stephen Kopp as where the tax has had negative results.
Although HNN could not find data on the tax’s impact on St. Louis, the city income tax is under fire. An investment guru and /or billionaire formed a Let Voters Decide committee. Rex Sinquefield’s forces will then try to collect enough signatures to put repeal of the tax on the ballot.
According to the Riverfront Times, St. Louis receives $141 million from the city earnings tax. That amounts to about one-third of the city’s budget.
How would the revenue be made up? A sales tax.
“Instead of paying income and earning taxes --- in which the more you make, the more you’re taxed,” the so-called billionaire wants to boost sales taxes, which in his mind are more equitable.
The Riverfront Times opined , “that theory makes lots o’ cents if you’re loaded but not so if you’re middle-class (or below) and forced to pay additional sales taxes to make up for the elimination of income taxes.”
And what type of responses have readers given? Some sound very familiar. However, one writer suggests taxing the purchase of luxury automobiles:
“The earnings tax and income tax are killing the cities and the state. If we would move towards other types of taxes, we would bring more businesses here, therefore more jobs. .. I know there are services provided and I am not saying pay no taxes, but how about taxing me on the decisions I make… like buying a luxury car, not my pay check. Why should people making money illegally get away with paying no taxes? Let’s find a way to make them pay taxes. “ Interestingly, some speakers at Huntington council hearing on the occupation tax have suggested taxing drug dealers and prostitutes.
Finally, an Illinois resident tosses a familiar argument: “ I live in Illinois and am forced to pay this tax because I work in the city? What happened to ‘no taxation without representation?’ I’m good enough to pay for city services I never use, but I don’t get to vote. Get rid of this unfair tax. I pay taxes where I live to pay for my local services, city residents should do the same.”
The campaign for elimination continues, click: http://www.unitedformissourispriorities.org and learn how elimination of the earnings tax would impact “basic services including police, fire fighters, snow removal, garbage pickup, street repair, services for lower income kids and adults, and emergency care.
(EDITOR’S NOTE: One concern for instituting the Occupation Tax in Huntington… We have confirmed that the FULL legislature must approve continuation of the home rule pilot program. They could add more cities, toss it, or grandfather cities that have made current changes. Who knows? )
CENTRAL OHIO: One of Best Places to Live , Annexation Pursued as well as Taxation
Powell’s city council plans to ask voters to approve a city income tax hike.
The city’s finance committee wants to increase the income tax from 0.75 % , with a credit as high as 0.50% , to 1.5% with a credit as high as one percent. The credit is given to residents who have to pay income taxes in areas they work. Council members argue the increase is fair because Columbus, Ohio, residents pay 2.5%.
The ballot language states the increase is for “general municipal operations and services, street maintenance and capital improvements. Council is considering a companion ordinance to state the tax MUST be dedicated to capital improvements for ten years.
But let’s be fair. Early in 2010 Delaware County was named one of the “Best Places to Get Ahead” in the U.S. by Forbes.com. It was also named one of the country’s five best places to raise a family, based on cost of living, reasonably priced homes, quality of schools and short commute.
Interesting the proposal includes two or three options to supplement the increase --- Encouragement of Development and Annexation; Reduce Operating Budget and Fund Capital Improvement with Existing Revenue.
How did Powell reduce budget line items to gain desired needs?
Items cut: Replacement speed trailer, building improvements, economic development activities, technology equipment and upgrades, capital improvements.
Items denied: Adding police officer, adding canine unit, signage throughout parks, adding community affairs personnel.
The city save $119,000 by changing employee health insurance prescription plans three time to reduce costs. They save $65,000 per year by working with a group carrier for workers compensation. They saved $30,000 by changing the city’s liability insurance carrier.
Here’s a link to the “Investing in Powell’s Future presentation: http://www.cityofpowell.us/documents/CapitalImprovementsFundingRecommendation.pdf
KANSAS CITY MISSING RECORDS
Some residents of Kansas City have complained about the city income tax. Now, they have another reason --- Tapes from the IRS sent to Kansas City, Mo. For implementation of the one percent income tax went missing.
The site “Homeland Stupidity” said 26 tapes containing personal income information were sent to the city, but the Treasury Department did not receive them back.
Assistant City Manager Rich Noll explained that “special equipment and software not commonly used” should protect residents from misuse of the missing tapes.
“We have no reason to believe there was foul play,” Noll stated.
Vincent Staggs wrote the following in December 2007 concerning KCMO’s tax:
“I’m glad to hear I’m not the only infuriated and bewildered by this local tax and the incompetence at the Revenue Division. Thus far they have: Tried to penalize me for taxes I paid but they miscalculated; tried to collect from me for 2002, when I didn’t move to KC until mid-2003; lost my wife’s 2006 Profits Return (the check we sent with it was cashed, so we know they received it); assessed me $11.00 plus penalties and interest for supposedly underpaid 2006 taxes without any explanation of this number or the income on which it was based; asked why I didn’t file a return for a year in which I earned $70 in Missouri (I was in grad school); and given us two different answers to the same question about business licenses. Why are they wasting my time and tax dollars on this? Is there anything we can do? Do we have any rights, or are we at the mercy of a merciless bureaucracy? We cannot wait to move out of KCMO.
Has the tax helped the city? Well one writer thinks not: “With all the millions KC has gotten over the last 30 years , I feel that we should have streets of gold.”
A downtown worker stated “I have been ripped off for years just for the privilege to cross the bridge to work. The “misplaced” IRS tapes are just another display of the citys mismanagement. I think the city govenment and city hall should be cleaned out of all staff and just start over. I want my city earnings tax back.”
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CITY TAXES ELSEWHERE: St Louis Residents Consider Repealing Earnings Tax
Kansas City Loses Tax Tapes
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – St. Louis has a one percent earning tax. It’s also a city mentioned by Marshall University President Stephen Kopp as where the tax has had negative results.
Although HNN could not find data on the tax’s impact on St. Louis, the city income tax is under fire. An investment guru and /or billionaire formed a Let Voters Decide committee. Rex Sinquefield’s forces will then try to collect enough signatures to put repeal of the tax on the ballot.
According to the Riverfront Times, St. Louis receives $141 million from the city earnings tax. That amounts to about one-third of the city’s budget.
How would the revenue be made up? A sales tax.
“Instead of paying income and earning taxes --- in which the more you make, the more you’re taxed,” the so-called billionaire wants to boost sales taxes, which in his mind are more equitable.
The Riverfront Times opined , “that theory makes lots o’ cents if you’re loaded but not so if you’re middle-class (or below) and forced to pay additional sales taxes to make up for the elimination of income taxes.”
And what type of responses have readers given? Some sound very familiar. However, one writer suggests taxing the purchase of luxury automobiles:
“The earnings tax and income tax are killing the cities and the state. If we would move towards other types of taxes, we would bring more businesses here, therefore more jobs. .. I know there are services provided and I am not saying pay no taxes, but how about taxing me on the decisions I make… like buying a luxury car, not my pay check. Why should people making money illegally get away with paying no taxes? Let’s find a way to make them pay taxes. “ Interestingly, some speakers at Huntington council hearing on the occupation tax have suggested taxing drug dealers and prostitutes.
Finally, an Illinois resident tosses a familiar argument: “ I live in Illinois and am forced to pay this tax because I work in the city? What happened to ‘no taxation without representation?’ I’m good enough to pay for city services I never use, but I don’t get to vote. Get rid of this unfair tax. I pay taxes where I live to pay for my local services, city residents should do the same.”
The campaign for elimination continues, click: http://www.unitedformissourispriorities.org and learn how elimination of the earnings tax would impact “basic services including police, fire fighters, snow removal, garbage pickup, street repair, services for lower income kids and adults, and emergency care.
(EDITOR’S NOTE: One concern for instituting the Occupation Tax in Huntington… We have confirmed that the FULL legislature must approve continuation of the home rule pilot program. They could add more cities, toss it, or grandfather cities that have made current changes. Who knows? )
CENTRAL OHIO: One of Best Places to Live , Annexation Pursued as well as Taxation
Powell’s city council plans to ask voters to approve a city income tax hike.
The city’s finance committee wants to increase the income tax from 0.75 % , with a credit as high as 0.50% , to 1.5% with a credit as high as one percent. The credit is given to residents who have to pay income taxes in areas they work. Council members argue the increase is fair because Columbus, Ohio, residents pay 2.5%.
The ballot language states the increase is for “general municipal operations and services, street maintenance and capital improvements. Council is considering a companion ordinance to state the tax MUST be dedicated to capital improvements for ten years.
But let’s be fair. Early in 2010 Delaware County was named one of the “Best Places to Get Ahead” in the U.S. by Forbes.com. It was also named one of the country’s five best places to raise a family, based on cost of living, reasonably priced homes, quality of schools and short commute.
Interesting the proposal includes two or three options to supplement the increase --- Encouragement of Development and Annexation; Reduce Operating Budget and Fund Capital Improvement with Existing Revenue.
How did Powell reduce budget line items to gain desired needs?
Items cut: Replacement speed trailer, building improvements, economic development activities, technology equipment and upgrades, capital improvements.
Items denied: Adding police officer, adding canine unit, signage throughout parks, adding community affairs personnel.
The city save $119,000 by changing employee health insurance prescription plans three time to reduce costs. They save $65,000 per year by working with a group carrier for workers compensation. They saved $30,000 by changing the city’s liability insurance carrier.
Here’s a link to the “Investing in Powell’s Future presentation: http://www.cityofpowell.us/documents/CapitalImprovementsFundingRecommendation.pdf
KANSAS CITY MISSING RECORDS
Some residents of Kansas City have complained about the city income tax. Now, they have another reason --- Tapes from the IRS sent to Kansas City, Mo. For implementation of the one percent income tax went missing.
The site “Homeland Stupidity” said 26 tapes containing personal income information were sent to the city, but the Treasury Department did not receive them back.
Assistant City Manager Rich Noll explained that “special equipment and software not commonly used” should protect residents from misuse of the missing tapes.
“We have no reason to believe there was foul play,” Noll stated.
Vincent Staggs wrote the following in December 2007 concerning KCMO’s tax:
“I’m glad to hear I’m not the only infuriated and bewildered by this local tax and the incompetence at the Revenue Division. Thus far they have: Tried to penalize me for taxes I paid but they miscalculated; tried to collect from me for 2002, when I didn’t move to KC until mid-2003; lost my wife’s 2006 Profits Return (the check we sent with it was cashed, so we know they received it); assessed me $11.00 plus penalties and interest for supposedly underpaid 2006 taxes without any explanation of this number or the income on which it was based; asked why I didn’t file a return for a year in which I earned $70 in Missouri (I was in grad school); and given us two different answers to the same question about business licenses. Why are they wasting my time and tax dollars on this? Is there anything we can do? Do we have any rights, or are we at the mercy of a merciless bureaucracy? We cannot wait to move out of KCMO.
Has the tax helped the city? Well one writer thinks not: “With all the millions KC has gotten over the last 30 years , I feel that we should have streets of gold.”
A downtown worker stated “I have been ripped off for years just for the privilege to cross the bridge to work. The “misplaced” IRS tapes are just another display of the citys mismanagement. I think the city govenment and city hall should be cleaned out of all staff and just start over. I want my city earnings tax back.”
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