Kansas City might’ve won the Super Bowl, but the city’s earnings tax has residents calling a timeout.
Date Published
Last night, the Kansas City Chiefs won Super Bowl LVIII. The Chiefs were originally the Dallas Texans until owner Lamar Hunt moved the team to Kansas City in 1963. Since the team was formed, they have managed to snag three Super Bowl titles under their belt, and the Chiefs continue to rouse a sense of pride in the hearts of Kansas City citizens. While KC residents are rallying behind their football team, they also seem to be turning against their city’s government.
St. Louis and Kansas City are the only two municipalities in Missouri that impose an earnings tax. Kansas City levies a 1% earnings tax on all businesses and employees in the city. While that number may seem small, KC racks up almost $300 million every year from the tax. However, this 1% is posing several problems for the city’s population growth. Kansas City residents are being influenced to move out of the city as the debt burden continues to climb.
According to StatisNostics, a database that utilizes U.S. government census data, the Debt Index in KC is 91/100 compared to Kirksville, Missouri’s Debt Index of 60/100. What does this mean? StatisNostic’s Debt Index measures the amount of debt per capita that a city has. The higher the Debt Index, the more debt a city has per capita, and fiscal impositions such as the 1% earnings tax only add to the debt pressure on Kansas City citizens. Kansas City might’ve taken the Super Bowl win, but how will they handle their impending population loss?
If you want to discover more about the tax burden in your own city, visit www.statisnostics.com. By entering your address in the search bar, our database will provide you with information on your city’s economic data, government, real estate, schools, health, demographics, climate, and public safety.
1. Millsap, Adam A. “New Study Finds St. Louis’s and Kanas City’s Earnings Taxes Reduce Employment and Population Growth.” Forbes, Forbes Magazine, 4 Aug. 2023, www.forbes.com/sites/adammillsap/2023/08/01/new-study-finds-st-louiss-and-kanas-citys-earnings-taxes-reduce-employment-and-population-growth/?sh=4ccd76ae41df.
2. Manley, Emily. “Special Committee to Study Future of Earnings Tax in St. Louis, Kansas City.” FOX 2, FOX 2, 15 Sept. 2023, fox2now.com/news/missouri/special-committee-to-study-future-of-earnings-tax-in-st-louis-kansas-city/.
3. “Kansas City Chiefs: NFL Football Operations.” Kansas City Chiefs | NFL Football Operations, operations.nfl.com/learn-the-game/nfl-basics/team-histories/american-football-conference/west/kansas-city-chiefs/#:~:text=In%201963%2C%20owner%20Lamar%20Hunt,23%2D7%2C%20in%201970. Accessed 11 Feb. 2024.
Cover Photo Credit: yisarandri on www.freepik.com