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Archive for Sunday, December 12, 2010

Gov.-elect Sam Brownback looking at tax overhaul

December 12, 2010

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— In recent years, Kansas legislators have been looking at proposed changes to the state tax structure as a way to squeeze out more revenue to pay for services in the face of historic revenue deficits.

The incoming administration of Gov.-elect Sam Brownback, however, is looking at ways to cut taxes in a way officials say will improve the economy and bring in the revenue needed to pay for state government.

Nick Jordan, Brownback’s appointee as secretary of revenue, said the administration hoped to develop “comprehensive tax policy” for legislators to consider when the 2011 session starts next month.

The idea is to encourage business growth and increase personal income, Jordan said.

That fits with Brownback’s statements last week. Referring to his campaign theme, Brownback, a Republican, said, “We laid out in detail our Road Map for Kansas that highlighted how we would create a globally competitive business environment through improved regulations, controlled spending and lower tax rates.”

House Speaker Mike O’Neal, R-Hutchinson, was speaking off the same page earlier in the week.

“I want to have a full-blown debate on tax policy,” he said. O’Neal said that could include reductions in the state personal and corporate income taxes.

When asked how taxes could be cut — given the state’s looming $500 million deficit — O’Neal said the Legislature needed to explore ways to cut taxes as a way to boost the economy. With economic growth, the necessary tax revenue takes care of itself, he said.

During the last legislative session, lawmakers wrestled with the idea of eliminating some of the current state sales tax exemptions as a way to raise revenue, but the proposals never gained traction.

Some conservative Republicans have said the best way to provide tax relief is to repeal the 1-cent increase in the state sales tax that was approved during the last session and went into effect July 1. That increased the state sales tax from 5.3 cents per dollar to 6.3 cents per dollar.

But Brownback opposes that idea, saying the full increase lasts only three years and then the rate goes down to 5.7 percent with a portion of that helping fund the state’s transportation plan.

He has said that controlling government spending and changing tax policy will be key.

“Our state still faces a nearly half-billion-dollar deficit. We are going to need to make some very difficult decisions,” the governor-elect said.

Comments

pace 3 years, 4 months ago

I don't see how attaching tax breaks for the wealthiest to job producing actions would be bad for the state's balance sheet. . Cutting taxes, unless it stimulates the economy, isn't magic, what is good for general motors is not good for the usa unless it means jobs in the usa, in this case, in kansas.

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CorkyHundley 3 years, 4 months ago

Maybe Brownie is trying to avoid state bankruptcy.

"The State of Illinois is still paying off billions in bills that it got from schools and social service providers last year. Arizona recently stopped paying for certain organ transplants for people in its Medicaid program. States are releasing prisoners early, more to cut expenses than to reward good behavior. And in Newark, the city laid off 13 percent of its police officers last week.

While next year could be even worse, there are bigger, longer-term risks, financial analysts say. Their fear is that even when the economy recovers, the shortfalls will not disappear, because many state and local governments have so much debt — several trillion dollars’ worth, with much of it off the books and largely hidden from view — that it could overwhelm them in the next few years."

http://www.nytimes.com/2010/12/05/us/politics/05states.html?_r=1

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pace 3 years, 4 months ago

I am just praying the Koch's can convince Bownback to stand up against working familes and small business to swing the tax breaks to the " job producers" . It would be silly to restrict the breaks to job producing, it would be an insult to Koch, they would not just pocket th cash and not use the money to produce jobs. We can trust them.

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toe 3 years, 4 months ago

KU had better develop a plan for a tuition based business. A much smaller KU will be a much stronger school without the State being able to demand open admissions. State workers had better start saving for their own retirement. Times are changing.

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verity 3 years, 4 months ago

Does anyone know where I can find statistics on what percentage of government welfare (subsidies, tax breaks, etc.) goes to corporations or those in the upper 1-5% of income?

Also interested in what percentage of our military budget goes to private companies like Halliburten and the former Blackwater and what kind of accountability there is on the funds that go to them. I googled it but didn't find anything with that breakdown (I didn't click on all 184,000 hits.)

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Richard Heckler 3 years, 4 months ago

Actually Brownback has no clue about what to do. As my conservative republican father in law from Pennsylvania noted Brownback was no good in Washington D.C. He asks why did Kansas make him Governor?

Cutting taxes is not the answer to strong economics. It's more about how the tax dollars are invested to make Kansas attractive to new investment. Giving wealthy corporations our tax dollars as a bribe to locate in Kansas is not a good idea. That money would be better spent on IMPROVED Medicare Insurance for ALL, education and infrastructure maintenance.

New infrastructure is merely a tax increase because it adds more to our existing tax bills for the long term.

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YoungEarth 3 years, 4 months ago

Because you wouldn't be rich if it was not God's plan. You deserve to have more than others because you ARE better than others! And don't worry, my Heavenly Father will keep all the roads and bridges in good repair. He'll also provide heavenly police officers (angels) to protect you and your riches from those who might want to redistribute some of your resources.

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sunny 3 years, 4 months ago

Those stupid terrible rich people! They should all be punished for being rich! They don't deserve to keep the money they have earned....I deserve to have as much of their money as I can get!

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YoungEarth 3 years, 4 months ago

KS Manimal, how did you figure this out? Only God's select know these plans to exalt those who follow the Family's doctrine such as the eminent Gov-elect and the eminent captains of industry, the Koch brothers.

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Tom Shewmon 3 years, 4 months ago

Bozo won't be happy until the rich are stripped of all their wealth and we are a third world nation where noone has a pot. This is his lifelong dream.

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pittstatebb 3 years, 4 months ago

Rightwinger - I must of missed the part of my government class that states the governor gets to vote on the laws that are passed. See, I always thought it was the house and senate that passed the laws. And in that same time frame guess who has had control of both houses in KS.

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autie 3 years, 4 months ago

The idea is to encourage business growth and increase personal income, Jordan said

Like the boys up top. This is code for less tax and regulation for the rich business owners and higher taxes for the middle class...you can take that to the bank...or take it out of the bank...looks like a storm a comin up....

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sunny 3 years, 4 months ago

It could help to force the 47% of Americans who pay NO taxes to start paying. Flat tax is the way to go.

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Centerville 3 years, 4 months ago

Tom - agreed. I learned what was up with the last round of clowns when Wagnon argued before Ways and Means that Kansas businesses should not be allowed to take advantage of accelerated depreciation because [get this] it would mean that she could take less money away from them. Not only is that a reprehensible attitude, her numbers were the typical starving-grandma, rising-sea-levels, over-the-top and, of course, proven to be hysterical. I would like to hear one politician mention that what people earn is primarily theirs. Just one.

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Tom Shewmon 3 years, 4 months ago

Yeah, after the Sebelius/Tiller/Morrison/ProKanDo Donation Club debacle and insidious regime railroad job, Brownback is a breath of fresh air for Kansas.

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rtwngr 3 years, 4 months ago

After more than two decades of either Democrat or RINO governors, Sam Brownback will make a nice change. If you don't like him or Kobach, tough bounce. Better luck next election you cry babies.

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just_another_bozo_on_this_bus 3 years, 4 months ago

"The incoming administration of Gov.-elect Sam Brownback, however, is looking at ways to cut taxes in a way officials say will improve the economy and bring in the revenue needed to pay for state government."

Translation-- transfer the tax burden away from the wealthy and the corporations they own to the middle and lower classes.

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KSManimal 3 years, 4 months ago

Allow me to translate governor Kochback's vagueness into plain English.

1 - we want to improve regulations = we want to eliminate any pesky laws that prevent Koch industries from screwing the middle class and wrecking the environment in pursuit of profits.

2 - we want to control spending = we want to slash public school funding and higher education funding in order to: A) give Koch industries additional tax cuts; B) ensure that only wealthy kids have access to decent K-12 schools and higher ed opportunities; C) pay for private school vouchers as a means to skirt around pesky church/state issues; and D) provide a sustainable "second class citizenry" for the wealthy, god-fearing white folk to exploit.

3 - we want to lower tax rates = we want lower corporate income tax rates, and lower personal income tax rates for wealthy folk. It's ok to keep higher sales tax rates, since those taxes disproportionately impact the working class; and in fact assist us in accomplishing much of what is outlined in #2.

If anyone believes I'm wrong in my translation, just remember actions speak louder than words - especially louder than vague words. Just sit back and watch what governor Kochback does. After a year or two, see if you can falsify my hypotheses.

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Bob_Keeshan 3 years, 4 months ago

Referring to his campaign theme, Brownback, a Republican, said, “We laid out in detail our Road Map for Kansas that highlighted how we would create a globally competitive business environment through improved regulations, controlled spending and lower tax rates.”


For instance, if you go to Brownback's campaign webpage you will see these "details":

1 - we want to improve regulations 2 - we want to control spending 3 - we want to lower tax rates

See all the detail? I hope Sam doesn't do much cooking, because the last time I checked you can't make lasagna by looking at a recipe that says, "Make lasagna."

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