Monday, October 11, 2010

Governor Nixon Takes a Stand on Prop A

For weeks Governor Jay Nixon has stayed silent on whether he supported or opposed Proposition A, an earnings tax initiative that will be on the November ballot. But now Governor Nixon has come out to say that he does NOT support the initiative.  This comes great news for the opponents of the proposition who have many campaign efforts aimed at defeating the initiative. 


Confused by what all of this means? Let's break it down for you.

The earnings tax (often called an "e-tax") is a mandated tax that is implemented on those who live or work in Kansas City or St. Louis. Those who are in support of initiative, like Let Voters Decide, argue that the e-tax should only be implemented if voters want it. They also argue that the tax keeps businesses away and, as a result, less jobs are coming in. 


However, for Governor Nixon and groups such as the United for Missouri's Priorities, the tax brings in the necessary funds to provide the day-to-day services that residents receive. Governor Nixon added that the government should  "provide a broad arsenal of options for local governments to fund their services" and stated that the government shouldn't limit those options. 


Now you're probably wondering what this means for you. Well, if the initiative is passed no other cities in the state will be able to enforce the e-tax as a way of funding for cities. It will also mean that the state's two largest cities will be without the revenue used for services such as the police force. While you may think that funding for police in Kansas City and St. Louis won't affect you, lawmakers in Springfield, Mo argue that if "bigger cities can't control crime, it will undoubtedly spill over" into other cities in the state. 


There are pros and cons to this initiative. The tax definitely helps Kansas City and St. Louis fund their services. And supporters of Prop A are quick to point out that they're not advocating to get rid of the tax, but rather to allow voters to decide whether they want it or not.  However, making it so that not other cities cannot enforce the tax is something that we think should be left up to the individual cities. 


What do you think about Prop A? Leave us a comment and tell us what you think!

3 comments:

  1. Just for clarification, what exactly is taxed, and how much is the tax?

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  2. The tax comes out of the income of those who work or live in Kansas City or St. Louis. The tax is 1% of their earnings.

    Thanks for the great question!

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  3. If California is any indication, letting voters decide their own taxes is a terrible, terrible idea.

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