Eliminating the city earnings tax: Pipe dream or sound goal?
I did my taxes a few months ago, in which I get my annual reminder about the city earnings tax. The 1 percent tax has been a thorn in the side of the business community, some members of whom have long complained that the tax is one of the obstacles to new business and industry locating in the city of St. Louis.
Our story today says, “Missouri Treasurer Sarah Steelman wants to lead an effort to get rid of the earnings tax that brings about $140 million a year to the city of St. Louis’s budget.”
Steelman proposes passing statewide legislation that would take back the authority the state gave to cities in 1947 to levy a tax of up to 1 percent on income of individuals and businesses. The only two cities with the tax are Kansas City and St. Louis.
…Mayor Francis Slay has also expressed support for getting rid of the earnings tax, as long as the revenue can be replaced.
Steelman has no solution for that. She said if elected governor she’ll push for a five-year repeal of the tax. “I would work with local officials to find a replacement tax, or replacement revenue to replace the earnings tax.”
Is this an election year promise or a real proposal that should be pursued?



Kurt is the director of social media for the Post-Dispatch, where he has worked since August 2002. He's been a journalist since 1982, covering municipal government, courts, education and two hurricanes as a reporter before becoming an editor.
Say it ain’t so Joe. A proposal to eliminate the antiquated Earnings Tax? And the mayor agrees with this? OMG I think I’m gonna cry. Nuts to a 5 year repeal, get rid of the thing permanently. I’ll vote for anyone who can get this passed. If I have to be taxed, I’ll go for the land tax. My little postage stamp will be pennies compared to tens of thousands we’ve paid over the years to that stupid tax. While someone’s looking at making changes, get rid of the 92 municipalities and finally merge the city and county.
Looking back, what has the Earnings Tax really bought me? Not much. The streets are crappy, we went from street sweeping every other week to once a month, we’ve been promised a new alley for 4 years now - still nothing.
Here’s a question? How do other cites in the state get their money? They don’t have an Earnings Tax
Best line from the story:
“State lawmakers first approved the idea of an earnings tax in 1947 as a result of declining urban tax bases when city residents started leaving to the suburbs. St. Louis adopted its tax in the late 1950s”
And they, residents and businesses, have continued to leave since then. I wonder if there is a connection?