Wash. U. chips in to protect city's earnings tax

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Wash. U. chips in to protect city's earnings tax
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Washington University has waded into the fight over whether St. Louis voters should be allowed to phase out the city's earnings tax.

Last week, the school donated $5,000 to "United for Missouri's Priorities," a labor-led coalition attempting to defeat a November ballot question targeting the one percent earnings tax in St. Louis and Kansas City.

The Nov. 2 initiative on the statewide ballot is the first step in repealing the earnings tax, which is paid by anyone who lives -- or works -- within the city limits.

If the measure is approved, it would trigger subsequent elections in St. Louis and Kansas City, where voters in both cities could decide to phase out their earnings taxes over a period of ten years.

Many, but not all, Washington University employees pay the earnings tax. While the main campus straddles the city line, some of the university's highest paid employees -- the doctors and medical school staff -- work in the Central West End.

What's Washington University's stake in the earnings tax debate?

If the earnings tax is repealed, City Hall may look for other ways to recoup the revenue -- such as, say, asking tax-exempt institutions like Wash U. for some type of payment in lieu of taxes.

It's also in the school's best interests for the city to maintain -- or, at least, not cut back -- its level of municipal services.

That said, the school's donation to the opposition campaign is a drop in the bucket. United for Missouri's Priorities, fueled by labor money, has collected about $400,000 in large checks since the beginning of the year.

Meanwhile, the man behind the attempt to overturn the earnings tax -- retired financier Rex Sinquefield -- has personally donated $6.8 million to the cause.

Copyright 2012 stltoday.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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