Statement from Sen. Joseph Keaveny Regarding Earned Income Tax Legislation

JEFFERSON CITY — In anticipation of the Thursday, January 14, Ways and Means Committee hearing on Senate Bill 575, Senator Joseph Keaveny, D-St. Louis, criticized the bill. This legislation aims to eliminate the income earnings tax in St. Louis City and Kansas City. The bill has no local sponsor and faces strong opposition from city residents.  Although the legislation affects only St. Louis City and Kansas City, its sponsor represents a district nearly 100 miles away from both places.

“Once again, despite local opposition, legislation is being pushed to eliminate the earnings tax. This would cut one-third of the operating budget of St. Louis City,” Sen. Keaveny said. “In Kansas City, 40 percent of the general fund would be eliminated; of that, 74 percent is funding for public safety.  The budget of both the police force and firefighters is in jeopardy, thus jeopardizing public safety.”

In 2011, citizens of the City of St. Louis voted in an almost nine-to-one vote ratio against the new proposition, with 88 percent of voters electing to keep the earnings tax.  In that same year, Kansas City voters supported the earnings tax by 78 percent.

“There is no plan to replace the loss of operating revenue for these two cities. With a vote on the earnings tax on the ballot in April, perhaps it would be best if we let voters have their say,” Sen. Keaveny said.

For more information, visit Sen. Keaveny’s official Senate website at www.senate.mo.gov/keaveny.