Taxes in Kansas City: Still Too High, Still Unfair

State and Local Government |
By Patrick Tuohey | Read Time 2 minutes minutes

Kudos to Kansas City Star editorial board member Dave Helling for his recent column on taxes in Kansas City, and legislative efforts to cap sales taxes at 14 percent. Helling goes into detail about city tax rates and their impact on those at the bottom of the economic ladder. Then he concludes,

Taxes should be simple — easy to collect and understand. They should be as low as possible. And they should be fair, based in part on ability to pay.

Kansas City’s tax structure meets the “simple” test. But local taxes are not low, and they are not fair.

This argument is not new to readers of this blog or to anyone who lives in the city and has to pay the taxes. But conceding that local taxes aren’t low is a noteworthy turnabout for Helling, who wrote just two years ago on March 1 2016,

Kansas City’s tax burden is relatively low, and it’s pretty balanced. It fails miserably on the fairness index — relying far too much on flat sales and income tax rates that hurt the poor — but that shortfall is difficult for most voters to see.

My colleague responded at the time that taxes are not relatively low in Kansas City. In fact, we’re a high-tax city when one considers not just the sales tax—which is itself high—but property taxes and our one percent earnings tax. And Helling is correct that taxes are not only high, but brutally regressive, resting on the backs of the working poor in Kansas City. Kansas City goes the extra regressive step of even taxing food. To add insult to injury, some tax rates in poor communities are higher than in wealthier neighborhoods.

Kansas City has serious problems with how it collects and spends revenue. These things are worthy of public debate, and Helling’s piece is an important contribution to that discussion. City leaders—or those who would be city leaders—need to come forward and join the discussion, not just ask (as Mayor Sly James did last week) to be left alone.

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the consequences — often unintended — of policies regarding economic development, taxation, education, policing, and transportation. In 2021, Patrick served as a fellow of the Robert J. Dole Institute of Politics at the University of Kansas. He is currently a visiting fellow at the Yorktown Foundation for Public Policy in Virginia and also a regular opinion columnist for The Kansas City Star. Previously, Patrick served as the director of municipal policy at the Show-Me Institute. Patrick’s essays have been published widely in print and online including in newspapers around the country, The Hill, and Reason Magazine. His essays on economic development, education, and policing have been published in the three most recent editions of the Greater Kansas City Urban League’s “State of Black Kansas City.” Patrick’s work on the intersection of those topics spurred parents and activists to oppose economic development incentive projects where they are not needed and was a contributing factor in the KCPT documentary, “Our Divided City” about crime, urban blight, and public policy in Kansas City. Patrick received a bachelor’s degree from Boston College in 1993.

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