It's a little known fact that the city of St. Louis levies a 1% earnings tax on money earned there. This means, if I was a plumber who lived outside the city of St. Louis, but I went into the city to repair a leaky toilet, I would be required to contribute 1% of my earnings into the city coffers.
This usually amounts only to local outrage, but a new application of the law is making headlines because apparently St. Louis city tax collector Gregory F.X. Daly has determined that he'll be collecting 1% of the bonuses being paid to the players of this summer's All Star game, which will be played in St. Louis.
On it's face, the proposition seems fairly righteous. However, there is a question of propriety: This is because in fact, the players are not being paid for playing in the game.
Generally speaking, All Star bonuses are paid based upon a player earning a spot on the team roster. This is irrespective of where, when, or if the game is even played. Technically, a player named to the roster does not even need to show up at the stadium to be paid the bonus. It has been earned prior to the game.
So where does tax collector Daly get off thinking that his city should get a 1% cut of the pie? Facts tend to indicate that the money is not being earned within his city.
In reading the comments posted to an article fielded by STLtoday.com, about this situation, I got the distinct feeling that the local citizens in and around St Louis find this entire scenario to be quite seriously asinine. I myself would tend to agree with them.
Someone who commented on that article also brought up one additional interesting point: When President Obama and his security entourage attend the All Star game on July 14, will they each receive an earnings tax bill from city tax collector Gregory F.X. Daly? In truth they should, because they would actually be earning their income while they are within the city limits.
I want to see those prorated tax invoices far more than I want to see the game.
St Louis prepares to shake down All Star players for its tax cut