It looks like Kansas City, Missouri will let its voters decide if they want to pass Prop A. The proposition, if passed, bans cities from imposing their own earnings tax.
Like most people, I do not like paying taxes, but I understand that they are necessary to pay for public services. How else do we pay our school teachers, firemen, and police force? Taxes have a bad reputation, but they also create jobs, and in this economic climate, we need to get our citizens back to work.
Should Prop A pass, cities would have to find other ways to pay for public services. One of the first things that usually happens is a cut in jobs as cities look to slash their budgets.
Public services and jobs aren’t the only things at risk with a tax cut. According to Frederick Lee, a Professor of Economics at the University of Missouri-Kansas City, “It’s going to hurt approximately one million people’s lives within (Kansas City and St. Louis) because of the uncertainty about maintaining income for the city, and the intent to provide for a better life for people in the city.”
We may see unemployment in the Kansas City area, as well as other cities in Missouri that have passed Prop A, increase as people become more uncertain about the times. Don’t we want people to be working again, so they can spend their money and get things rolling?