Would end of the earnings tax mean higher sales, property taxes? - KMOV.com

Would end of the earnings tax mean higher sales, property taxes?

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ST. LOUIS, Mo. (KMOV.com) -

Some St. Louis City officials believe ending the earnings tax would force city leaders to raise other taxes.

An extension of the earnings tax will be on the April 5 ballot. If voters vote down an extension of the one percent tax, officials say it would be phased out over a period of 10 years. Alderwoman Cara Spencer and other city leaders say it would deprive the city of $160 million a year and force cuts to key services.

“We’ll be cutting services across the board,” said Spencer.

If an extension of the tax is voted down, some city leaders and business owners believe other taxes would go up, making the situation more difficult for small business owners.

“Where’s the revenue going to come from to offset the losses? Is it going to be a much higher sales tax or property tax? It’s got to come from somewhere,” said Randy Vines, the owner of STL Style.

Business owners told News 4 a higher sales tax would make products more expensive.

City officials say any increase in sales or property taxes must be approved by the voters.

The Vote No on the E-Tax Committee, a group opposed to the earnings tax, released the following statement about the tax:

“We believe the earnings tax hurts the working poor by taking money directly out of their pockets.”

City officials plan to brief the media on the truths and myths regarding the tax Tuesday. 

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