ST. LOUIS, MO (KTVI-FOX2now.com) -
The campaign to repeal the city earnings tax is picking up steam and so is opposition. A multi-millionaire political donor is leading the fight to get rid of the earnings tax. City officials say repealing the tax would gut city services. The campaign's chief architect is Rex Sinquefield from Jefferson City. The millionaire investor behind it has donated heavily to politicians like Mayor Slay and Senator Kit Bond.
The city's 1% earnings tax brings in about $137 million a year. That's about 31% of the city's general fund budget. It's the largest single source of revenue in the general fund budget.
Opponents of the earnings tax want voters statewide to force voters in St. Louis to vote on keeping the earnings tax every five years.
"We just want to let voters have a chance to vote on the tax. If they choose to discontinue the tax, certainly there's going to need to be a plan prepared on how to phase that tax out," said Marc Ellinger of "Let Voters Decide."
Can the city come up with a plan to replace roughly the entire city police department budget? That's almost a third of the city's total budget. "The sales tax obviously would have to go up, maybe as much as 12%. Can you imagine paying 12 percent sales tax in the city of St. Louis?" said St. Louis 22nd Ward Alderman Jeffrey Boyd.
Opponents say the earnings tax is a business killer, but 25th Ward Alderman Shane Cohn explains. "As a CPA in my real life, I've seen so many successful small businesses in the city of St. Louis and they realize how much more they get with their monies paid here in the city of St. Louis."
The big money behind the petition is Rex Sinquefield a retired investment guru and major campaign contributor across the state.
"I suspect that it's big money interests. It's big money looking after the big guy and not looking at the big picture for the little guy."
Earnings tax supporters also point out that opponents are mostly from out of town.
If Sinquefield can get 92,000 statewide signatures then statewide voters could decide in November whether to force city residents to vote every five years on the tax.
The city's 1% earnings tax brings in about $137 million a year. That's about 31% of the city's general fund budget. It's the largest single source of revenue in the general fund budget.
Opponents of the earnings tax want voters statewide to force voters in St. Louis to vote on keeping the earnings tax every five years.
"We just want to let voters have a chance to vote on the tax. If they choose to discontinue the tax, certainly there's going to need to be a plan prepared on how to phase that tax out," said Marc Ellinger of "Let Voters Decide."
Can the city come up with a plan to replace roughly the entire city police department budget? That's almost a third of the city's total budget. "The sales tax obviously would have to go up, maybe as much as 12%. Can you imagine paying 12 percent sales tax in the city of St. Louis?" said St. Louis 22nd Ward Alderman Jeffrey Boyd.
Opponents say the earnings tax is a business killer, but 25th Ward Alderman Shane Cohn explains. "As a CPA in my real life, I've seen so many successful small businesses in the city of St. Louis and they realize how much more they get with their monies paid here in the city of St. Louis."
The big money behind the petition is Rex Sinquefield a retired investment guru and major campaign contributor across the state.
"I suspect that it's big money interests. It's big money looking after the big guy and not looking at the big picture for the little guy."
Earnings tax supporters also point out that opponents are mostly from out of town.
If Sinquefield can get 92,000 statewide signatures then statewide voters could decide in November whether to force city residents to vote every five years on the tax.
Digg
Twitter
Facebook
StumbleUpon
