Earnings tax in St. Louis, Kansas City could be challenged in statewide ballot initiative

Associated Press: A campaign is under way to ask Missouri voters to eliminate the city earnings tax in St. Louis and Kansas City. Opponents of the 1 percent tax assessed by the two cities hope to put the question on the statewide ballot this fall. Some officials in St. Louis and Kansas City fear the potential effects on their budgets. The earnings tax generates about 33 percent of city revenue in St. Louis and roughly 40 percent of Kansas City's revenue. Supporters of the earnings tax argue that people who work in the cities benefit from essential city services and should help pay for them. Critics say the tax hurts cities' ability to compete and attract business.

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