James Worries Of Loss of E-Tax and City Pensions

Kansas City mayor Sly James warned that the loss of the city’s earnings tax could “ snowball and lead to a city bankruptcy.
James and other leaders says if voters do not renew the earnings tax at the April 5 election major cutback could follow.
A defeat of the e-tax would lead to its phase-out over 10 years.
The city says that could lead to more than 2,00 lay-off over the period.
The earnings tax campaign says more than 1,300 of the lay-off could be among police and firefighters.
James says the loss of the earnings tax’s $230 million dollars a year and the lay-off could jeopardize the city’s pensions.
“Because fewer people will be contributing to it. That’s the cycle that leads to bankruptcy,” James told KMBC 9 News.
The city budget shows the city pays $79.8 million dollars out each year in pension benefits for former employees.
James says the bankruptcy threat is not imminent buy it’s a possibility if the city phases out the earnings tax and the base of city employees contributing the pension funds is reduced by lay-offs.

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