By Antonio D. French
Filed Thursday, March 9 at 9:48 AM
Want the earnings tax eliminated? Then either expand the City's boundaries or spread the cost of services, says Mayor Francis Slay.
On his blog, the mayor said today that he agrees that the City’s earnings tax, a one percent local tax levied on those who live or work in the City, is a "disincentive to some residents and businesses."
"Expand the City limits and tax base to — say — 270, and the need for the earnings tax would disappear," said Slay. "Conversely, spread the costs of social services evenly throughout the region, and the need of the earnings tax would disappear."
Slay goes on to admit that these things are unlikely given the present political realities. But he said he and other city officials are taking a hard looking at the tax.
"At this point, I can’t tell you that the earnings tax will or will not survive our scrutiny," said the mayor.
9 Comments:
I say regionalize the earnings tax. Assess the tax on workers in St. Louis County - but lower the rate paid accross the board, say 1/2 %. Pool the revenues and provide the city with its current earnings tax allocation.
Consider the politics - City residendents get a tax cut, County residents who currently pay the 1% get a tax cut and get additional services that can be provided by the overall increase in collections from Illinoisans, and workers in St. Louis county from St. Charles and Jefferson Counties.
Seems like a win-win to me
10:05 AM, March 09, 2006
Not exactly a win-win if you currently live and work in the County.
10:49 AM, March 09, 2006
Slay is the king of talking without saying anything.
He hates the earnings tax but he admits its here to stay. He offers no solution and no realistic alternative.
Just more talking.
Yawn.
12:01 PM, March 09, 2006
Nope.
$130 million (1/3 of the budget) is virtually impossible to replace.
12:36 PM, March 09, 2006
Seems he may simply be heading Shrewsbury off at the pass for fundraising for the 2009 race. Those companies most likely to give Hizzoner big bucks will be pleased by his stance, and displeased at Shrewsbury's being the first to pooh-pooh the new study.
2:49 PM, March 09, 2006
How about expanding the city limit which would increase the tax from property, thus removing the need for this tax?
6:28 AM, March 10, 2006
I don't think that rasing property taxes is a good idea. Those high-end projects that would generate the most taxes are mostly in abatement cycles for the immediate term. Any tax increase would thus hit individual property owners pretty hard. Is Slay really going to piss the voters off like that?
8:54 AM, March 10, 2006
Krazy Kat - clearly your name is appropriate. This thread is about an earnings tax - not a property tax. Earnings tax is levied on income, property taxes are levied on real estate.
Further, I don't think Slay is suggesting raising any taxes, his blog only reported that it would be nice to eliminate the earnings tax in the city, however he says that the city's reliance on that revenue makes its elimination nearly impossible.
11:32 AM, March 10, 2006
Mr. Anony-Mouse: I was responding to the Anonymous comment above mine.
9:10 PM, March 10, 2006
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