Topeka — Business leaders are telling a Kansas Senate committee that they oppose an increase in the state’s sales tax.
The Senate Assessment and Taxation Committee had a hearing Monday on a bill increasing the sales tax from 5.3 percent to 6.3 percent for three years. It also boosts tobacco taxes.
The measure is designed to help erase a projected $467 million budget shortfall for the fiscal year that begins July 1.
But business groups contend the tax increase will stifle economic activity and lead Kansans in border counties to shop in other states.
Kansas Chamber of Commerce lobbyist Kent Eckles (EH’-kuhls) told the committee that retailers in other states are “salivating” over the prospect that Kansas will raise taxes.
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tolawdjk (anonymous) says…
Where exactly will this exodus of Kansas shoppers leave from? Baxter Springs to Joplin? Goodland to Burlington? Overland Park to Raytown? Liberal to Guymon?
If gas is $2.75/gallon and I average 25 mpg, that equates to $.11 per mile driven. On a $.01 tax increase per $100 that means, round trip mile, I have to spend more than $110 to offset the taxes with my milage -and- purchase in an area with lower the 5.3% taxes.
Just exactly how many border regions like that in the state exist, that didn't already have a favorable "over the border" situation in the first place. My guess, something no greater than and no less than zero.
merrill (anonymous) says…
Kent Eckles is simply nuts.
"Kansas Chamber of Commerce lobbyist Kent Eckles (EH’-kuhls) told the committee that retailers in other states are “salivating” over the prospect that Kansas will raise taxes."
What a load of BS! Again Kent Eckles is simply nuts.
Most all states are looking for new revenue sources. The Kansas Chamber of Commerce is nowhere to look for direction. As I see it this group is anti economic growth and look forward to cleaning out the states cookie jars. Kansas Chamber of Economic Destruction is more like it.
gr (anonymous) says…
"By 2007, corporations paid only about 7 percent of total federal revenue."
Foul!
And I bet Paulette paid much less than even a fraction of a percent of the total revenue. Shall we call for increasing taxes just for Paulette?
Why not make a fair comparison and show what percentage of income do corporations pay in taxes compared to others. I would guess the reason corporations spend so much effort in finding ways to avoid taxes is due to people with the attitudes of Paulette who think they should be taxed at a higher rate just because. I know I would just to spite the Paulette's in this world.
bear1956 (anonymous) says…
Well, gr it seems to me that if corporations paid 7% of the total tax revenue then individuals and non incorporated businesses paid the other 93%. I guess I would rather have corporations with huge profits paying a larger share. I guess the other alternative is to close all of our schools, let our highways fall apart, everyone can pay for their own fire and police protection, each family can dig their own well and dump their waste in the back yard, each able bodied male can serve in the local militia to provide our national defense, and lets' not forget when you need medical treatment we can barter our chickens and pigs.
goldwater (anonymous) says…
2/3 rds of Kansas C-corps pay NO income taxes to the state of Kansas
oneeye_wilbur (anonymous) says…
so how many chickens would a doctor take for a heart operation. look barter worked quite well during the war and the depression. maybe it's time to bring back some real budget cuts and less spending in households. a local photographer years ago, traded bacon for film, you see during the war, the film had silver in it and it was a commodity. most folks now don't have a clue about sparse living and frugality, the generation that did is almost gone and have many learned from them?
xbusguy (chris Ogle) says…
goldwater (anonymous) says…
2/3 rds of Kansas C-corps pay NO income taxes to the state of Kansas
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I don't think so...
imastinker (anonymous) says…
I think there's a lot of people that don't understand how corporations work.
Income is either spent or paid out as wages or dividends. Either way, taxes are paid on it.
gr (anonymous) says…
bear, you are missing the point.
What if there was one corporation which was taxed at 70% of their income but their total amount was only a fraction of the total tax revenue. Would you think to tax them still more? How about 1000% of their income - is there any limit to how much you would tax someone you don't like?
puddleglum (anonymous) says…
paulette is right on. the reasons for less and less corporate taxes over the years is simple...lobby lobby lobby, buy representatives, etc. if there were a party and a candidate that really represented the people of kansas, rather than the business owners of kansas- they could help us out.
beo, that was a tuff one!
gr (anonymous) says…
paulette, perhaps you could give us some perspective FACTS by saying what percentage of the total budget you pay.