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ST. LOUIS, Mo. – The “Yes on Prop E” committee has been formed by Mayor Lyda Krewson and Collector of Revenue Gregory F.X. Daly. They want to persuade people to retain the earnings tax that contributes to a third of the city’s budget. It is responsible for paying for basic services like police, fire, EMS, parks, trash collection, and more. The referendum will be on the ballot in April.

The earnings tax is a one percent tax paid on compensation and profits earned in the city. It is voted on every five years after statewide Missouri Proposition A passed in 2010. The referendum applies to the earnings taxes in Kansas City and St. Louis.

“The economic uncertainty created by the COVID-19 pandemic underscores exactly why the earnings tax must continue to be protected. I look forward to working with Mayor Krewson to educate voters about the benefits of retaining the City’s earnings tax,” said writes Collector Daly.

Opponents say the earnings tax stifles job growth in the city and if voters reject it, the tax would be phased out over ten years, giving the city plenty time to find new revenue sources.

The earnings tax makes up 36% of St. Louis City’s budget. It brought in $185 million last year. Krewson says that the city would be forced to dramatically decrease services or increase property and sales taxes if it is not renewed.

Mayor Krewson and Collector Daly are contributing $25,000 from their campaign accounts to promote “Yes on Prop E – Earnings Tax STL.”