Bachmann criticizes St. Louis earnings tax
Some winners of the RCGA’s Right Arm of St. Louis award use their acceptance speeches to propose bold new initiatives. John Bachmann, who accepted the award Thursday night, presented a wish list of ongoing projects that he wants to see succeed — the BioBelt effort to support the life sciences, the attempt to get Ballpark Village built, and so on. He did strike one bold note at the end of his list, though: Bachmann said he’d like to get rid of St. Louis’ city earnings tax. He called it “one of the region’s great speed bumps.”
Bachmann, a senior partner at Edward Jones, is also a former chairman of the Regional Chamber and Growth Association.
Missouri Gov. Jay Nixon kicked off the RCGA’s annual dinner with a recitation of what he wants to accomplish in his Show-Me Jobs program. He didn’t mention the RCGA’s legislative priority, a package of incentives for angel investors and science-based startup companies, but RCGA President Dick Fleming told me that the governor seems sympathetic to that proposal.
Best story of the night: Madison County Board Chairman Alan Dunstan’s recounting of how he once snubbed a young Senate candidate at a Democratic picnic, refusing to let the candidate speak because he wasn’t endorsed by the party establishment. The candidate’s name: Barack Obama.
Most impressive numbers of the night: RCGA Chairman Bob Reynolds, the CEO of Graybar Electric, said the group is working with 66 prospective new employers, representing more than 18,000 potential jobs. The number of prospects has nearly tripled since 2006, he said.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
If the earnings tax is such a big deal, then why is so successful around the country. And, Saint Louis City has the second lowest one in the nation. Page 6 of this PDF says it all: http://www.kcmo.org/manager/OMB/earningtax.pdf
2900 cities in Pennsylvania have an earnings tax.
It is also great to hear those who do not live in Saint Louis City complain about City taxes. Turns out I do not like taxes in St. Louis County and Wildwood, where John lives, but I do not get a say.
The earnings tax is not the main issues. We have horrible transportation choices in the region, there are too many municipalities, zoning is a mess and state support only goes to the suburbs. Leave Saint Louis City’s tax base alone. Or move to the Saint Louis City and you can then vote.
Alan, you weren’t the only person to underestimate Obama ‘back then’. He couldn’t rely on the grin and charm to take him everywhere. He relied on it to take him where he wanted to go and when he was ready to go.
etmp, BINGO, BINGO, BINGO when you say we have too many municipalities. You have too many gov’t entities that complete with each other for resources. You have 90+ municipalities in STL County and City of STL all wrestling with each other for development, jobs, funds for schools etc. We have seen numerous reports as to what a waste of resources all these little towns are and the amount of money that could be saved by eliminating duplicate services. I live in a municipality in STL County and we have more police and fire personnel than Carter has pills. The municipality that borders mine has approx. the same number police and fire personnel and stations. I would think if two combined the amount of money that would be saved would go along way in improving schools, roads and the attration of jobs. Unfortunately the residents can’t seem to see the forest for the trees.
I firmly believe if the city became part of the county and the 90+ municipalities were cut down to approximately six this region would be much better for it. We would have much greater power in Jeff City and Wash DC and could pool resources to attract jobs. Want a good example, visit the Dallas/Fort Worth metro plex.
To supplement my post, this past December the family two houses down had a chimney fire. We had 6 fire trucks, 8 police cars, 3 ambulances show up for this. I actually took pictures because I couldn’t believe what I saw, talk about overkill and a waste of my tax dollars!
Wow, Bachmann sure knows what he’s talking about. New York City has a wage tax that ranges from 2.907% to 3.648%. That’s why there are no businesses there and no one lives there. Same with Washington, D.C.
And way too many of those little municipalities have revenue bases built on sales tax. When that stream dries up (and I’m looking at you, Crestwood), merger is one alternative. Question is, who’s willing to de-incorporate? Richmond Heights wasn’t. But that was then.
For those defending the earnings tax, the difference between St. Louis and some of the other cities you mention, is that St. Louis is hurting for businesses. Citing New York City’s taxes is meaningless because they could charge 10% and people would still flock there for the “it” factor and the opportunities that are there. With a city like St. Louis with comparatively little to offer, it can be the straw that broke the camel’s back.
my point exactly. the earnings tax does not kill business.
The biggest impediment is racism, which emptied the city and decimated its tax base. Earnings tax is a symptom: It replaces what the racists stole. The city is built to last, and even in its reduced state it will outlast the racists.
“17 states have cities and/or counties that impose a local income tax
25% of large urban cities have a local income tax.”
This info was obtained from Page 6 of the PDF that “etmp” provided on one of the comments. So if the earnings tax is such a great idea, than why do less than half of the states use an earnings tax in their cities, and why do only a fraction of “large urban cities have a local income tax”?
Why are businesses, families,and good schools staying away from Missouri’s large urban regions of Kansas City and St. Louis? Businesses go to big cities because of incentives, and individuals and businesses alike will agree that an earnings tax on top of the state income tax are not very tasty incentives. Also, why are several states (Virginia, New Hampshire,Louisiana, Massachusetts) considering dumping their earnings taxes?
In the area of city revenue options, earnings taxes are the exception, not the rule.