The Kansas City Star’s Prime Buzz online column (link via Combest), which — thank goodness — is free to access again, makes some interesting points about the Show-Me Institute’s study on how to abolish the earnings tax in Kansas City. They make it sound so nefarious to send all the councilmembers a copy of the study:
A group affiliated (with) Sinquefield has sent out fliers that council members describe as "very slick."
Well, it wasn’t so much a "group" affiliated with Rex — it was just Rebecca and I stopping by the Kansas City Hall and Jackson County offices to hand-deliver copies of our work to all the elected officials. I thought it was awesome the way City Hall and the County Courthouse complement each other from opposite sides of the street, by the way. I have been to KC many times, but that was my first visit to the government section of downtown.
The other point is more serious. The councilmembers and their lobbyist, who were quoted in the article, have totally missed the fact that Dr. Haslag’s study is completely revenue neutral, pointing out that the earnings tax can be replaced with a less distortionary land tax. From the article:
Gamble said he would emphasize to legislators that the loss of the earnings tax would "bankrupt the city."
No, it wouldn’t. The study intentionally gave KC a revenue-neutral roadmap. That would be clear to anyone who had actually read it. But it is great to see that some people in Kansas City are taking Dr. Haslag’s fine work to heart.
