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Archive for Tuesday, February 8, 2011

Gov. Sam Brownback to propose economic growth plan

February 8, 2011

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— Gov. Sam Brownback is on schedule to announce his economic growth proposal this week, his office said Tuesday.

Brownback promised to deliver a plan 30 days after his inauguration on Jan. 10.

He has been putting together policies and initiatives with his "economic growth team," according to Brownback spokeswoman Sherriene Jones-Sontag.

That team includes Brownback's secretaries of labor, commerce, revenue, agriculture and transportation, and budget director and policy director.

Brownback has said he wants to lower the state's unemployment rate and create more private sector jobs.

He has also called for a "re-setting our tax code." In his State of the State speech, Brownback said, " ... we need a tax code that encourages investment, income growth, and job creation."

One proposal that has been touted by conservative Republicans and the powerful Kansas Chamber of Commerce is eliminating the corporate income tax.

The state has undergone six rounds of budget cuts in recent years and still faces a projected $492 million revenue shortfall in the next fiscal year.

But supporters of cutting the tax on businesses say it will spur economic development.

A bill by state Rep. Gene Sullentrop, R-Wichita, would phase out the Kansas corporate income tax over five years. House Speaker Mike O'Neal, R-Hutchinson, supports eliminating the levy, saying it would send a message that Kansas "is open for business."

Comments

oneeye_wilbur 3 years, 2 months ago

If Brownback had some genius ideas, he would promote a mass transit plan, high speed thorughout kansas to move people from place to place to work. The population centers need to be realigned in the state big time!

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jayhawklawrence 3 years, 2 months ago

I am very skeptical about the control of agriculture by large international companies and their influence on government.

I would like to see Brownback do some things that encourage organic farming and local farm markets in Kansas.

We need to teach our young people more about growing and processing their own food and we need to encourage new business development in this area.

From now on, whenever we look to the future, we have to think of two things. Sustainability and improving the quality of life for individual Americans.

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Getaroom 3 years, 2 months ago

Liberty_one. So Texas isn't big enough for you and you need to sit on this blog too? Get a life. All of you better start learning how to spell Fascism and Oligarchy and get used to living under that, or perhaps you're already comfortable in those clothes. The dumbing down of America has been in the works for years now and why? Lots of reasons for sure, but a primary objective is to keep spreading the gap between the very rich and the poorer, including shrinking the middle class. Sure, wipe out education for the masses and increase the dumbed down working class by keeping them "in their place" much like the cast system of India. Power, Control, Greed maybe a collective human condition and the result is that left unchecked, the elitists are empowered to hold non elitists feet to the fire of poverty. 40% of the wealth of this country is currently held in the coffers of 1% of the population.
Did your ballot determine whether those 40% are Individuals of Corporations? The US Supreme Court has told you that those 40% are the ones who get to decide how policies and laws are put in place and even who gets elected - real sweet for the few. Those are the people and the very policies and laws that govern your everyday life.

The skunk is guarding the hen house and something stinks and it's more than dead chickens.

Socialism is the very least of the worries for the future of this Nation. The Free Market will take of the educational system? Hmmm.. wonder how that works with no checks and balances and with only self monitoring and that "self" is whom? Individuals or Corporations operating under who's ethical and moral standards?

How many of you out there will vote to put the Moocher-Liberty_one, or the blabby non-annonamus Tom Shew.. in leadership roles and the deal is this: if they put wholesome food on the table of every individual in this nation, a job that pays at least a living wage for adults, create a system of healthcare that allows for everyone to have affordable care, keep the streets safe, protect the country, fix the broken welfare system, balance the budget and etc., then and only then, do they get to continue living in their homes, collect SS, Medicare, keep personal transportation or watch that Socialist Super Bowl game they so love.
Want to live on the street, or under a bridge? OK! Keep right on supporting selfish interests because that maybe where you end up sooner than you ever imagined and you can still blame Obama all you want and do it from the comfort of your own slice of on-the-lamb heaven. You will have plenty of room to carry that gun safe on your backs loaded with ammo, extended magazines and Romanian AK-47's and prove boldly to everyone you are free men living under the 2nd Amendment rights that GOD gave you. It's all a matter of perspective ain't it!?

When you get to have your own country and know it all - then you can have it all your way and no need to share.

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jayhawklawrence 3 years, 2 months ago

I think we need to realize that our hope is going to be in our young people. It is going to be up to them to separate our bad habits and ideas from the good and create a better world.

Here are some areas I am interested in.

America is about individual freedom. We have to protect the individual. It cannot be about pay to play politics anymore. We need to strengthen privacy rights and ownership rights for individual Americans.

I would like to see and end to the practice of catering only to large corporations and special interests. We need to start thinking in terms of lowering the cost of living for individual Americans and focus on the concept of "sustainability" from an American perspective.

I would like to see more investment in the idea of individuals owning their own energy sources and selling this back to the community as a kind of cooperative. I would like to see an end in the future to the dominance of utility companies and international oil companies.

We need to change our health care system to make it more affordable.

We need to fix our social security system. The government stole the money we invested.

We need to reduce the power of "too big to fail" companies influence on our government.

We need to make it more attractive to buy American made products in America.

We need to change the way we build houses. They are not sustainable.

These are just a few areas I would like to see change in the future.

I want the conversations to change toward creative problem solving and thinking. I don't want to listen to a discussion about whether Glenn Beck is a nutcase or not. I think that is obvious.

I want to know what we can create, invent, sell and market to make this world better. I think I am not alone.

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jayhawklawrence 3 years, 2 months ago

I think we need to step back and grade our politicians based on the current National Debt approaching $14 Trillion and determine that both political parties have basically sucked at governing. That should be reason enough to end the bone headed name calling and BS that dominates political discussion in our country.

We elected them. Why do we continue to put up with the same BS?

We have a government that is too big and too corrupt to care about the average American. We need to cut expenses because we are broke and we need to reform the tax code because it does not work well. Only the average American can demand these things and that means electing reform candidates in the next election and getting rid of career politicians.

There will be more Tea Party type candidates running for office despite the fact that some of the ones we have seen were not very qualified. More qualified people will join this movement so I think the Democrats have to respond with their own reform candidates.

The idea that you can create jobs by spending taxpayer money is like building a house on sand. It has no future at all and we need fresh and new ideas that have a chance of growing into something with a future. So we have two problems. We have spend crazy people and we have selfish corporate interests with no idea about social responsibility. Neither of these groups are good for America.

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northtown 3 years, 2 months ago

First start on the national level-Bring home our troops,shut down our borders,protect our own land.Stop all imports,produce what we need in our country? Just a draem that will never happen,Ameircans do not want work these days-They wnt to set in a cube and watch a computer screen. Stop using land for worthless and expensive housing. Farm and feed our own coutry Produce our own clothing Come up with other energry Our country has become lazy and want someone else to support us. But we,americans can pull together,build what we use,learn new ways to do it and support our selves,and stay out of other countries business,this is a big waste. This is not just for Kansas,but all Americans-Learn how to live-Build our own factories,support our selves,live with in reason. Just jin in,tell your rulers today how you feel,not just Lawrence KS. I am just wasting my time,goodbye to all!!!!!!!!!!!!!!!

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bobberboy 3 years, 2 months ago

I wonder how much oneal and his other bohemian club wantabe crackpot Gophers are getting under the table ? A free trip to Northern California and they get to rub up with the big boys ?

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bobberboy 3 years, 2 months ago

This must be great news for the Koch Brothers.

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Richard Heckler 3 years, 2 months ago

Brownback is not a republican. Republicans generally can be fiscally responsible.

Brownback is following this neoconservative guideline that wrecks state economics:

TABOR is a mutation of the Tax and Expenditure Limits (TELs) instituted in 28 states around the country over the past quarter-century, beginning with Proposition 4 in California in 1979. TABOR is like a conventional TEL on steroids: it has been pumped up with stricter spending limits and tighter restrictions on legislative action. Whereas TELs traditionally tied state government spending to faster-growing personal income, TABOR allows government budgets to grow only as fast as the population plus the inflation rate.

Furthermore, TABOR applies the population-plus-inflation adjustment to the prior year's actual expenditures, not to allowable or budgeted expenditures. So, as the CBPP notes, "when state budgets grow slowly or fall, as in the recent fiscal crisis, actual spending or revenues are likely to be lower than the level permitted by the formula. If this lower level becomes the new base … then the level of public services is permanently ratcheted down." Colorado's TABOR, the only one in effect so far, was also designed to be hard to reverse: only a ballot measure approved by the state's voters can do so.

Most of the financial backing for TABOR initiatives has come from antitax fanatics like Grover Norquist, White House insider and intellectual author of the Bush tax cuts, or brothers Charles and David Koch of oil pipeline conglomerate Koch Industries, heirs to their father's company and fortune. As co-owners of their $40 billion corporation, the Kochs have used their staggering resources to start an ultraconservative think tank designed to pump out ideological broadsides disguised as policy studies.

The Americans for Prosperity Foundation (AFPF) touts TABOR and other pieces of conservative legislation as overwhelming success stories, usually with validating data from like-minded (and like-funded) organizations. "It's no accident that TABOR's major champions … share many of the same free-market philosophies and goals. They also share many of the same funders--large corporate interests and right-wing private foundations--and in some cases, they share board members as well," concludes a 2005 report by the Bureau of National Affairs, a nonpartisan business news publisher.

Armed with these dubious studies and lots of corporate AFPF dollars, local groups stuff mailboxes full of flyers and whisper in the ears of state politicians. AFPF's director of North Carolina operations, David Neeley, "expects to spend anywhere between $200,000 and $500,000 this year alone on radio and television advertisements and direct-mail promotions."

http://www.dollarsandsense.org/archives/2005/0705rebne.html

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swan_diver 3 years, 2 months ago

Hopefully Brownshirt and his fellow con men will one day swing from the yardarms, after they order the Kansas National Guard to fire on mobs marching on the statehouse. Think it's a stretch? Enjoy the ride.

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greywolf85203 3 years, 2 months ago

This govenor is making me sorry I'm a republican. I am glad this was the year I cross party voted. That is smart make companies not pay taxes but take more money from our children's education fund. I say make them take a pay cut since it seems they haven't done that in years while all the rest of us suffer. Thanks Brownback I think I will be switching my voters registeration for the next election. I have lost my faith in the republican party!

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SnakeFist 3 years, 2 months ago

Kansas has become an experiment in extreme-right wing conservative ideology. Time will tell whether the experiment will be a success. The voters saw fit to create such a large conservative majority that opposing views can no longer provide checks and balance.

The bad news is that we're screwed if the conservatives are wrong. The good news is that we'll have settled several issues once and for all, such as whether eliminating taxes will increase tax revenue and, if not, whether people and businesses want low or no taxes at the expense of government services, education, the arts, and, in general, a decent quality of life.

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Stu Clark 3 years, 2 months ago

L_O, Where do you see price controls? The last ones I remember were under Nixon.

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Healthcare_Moocher 3 years, 2 months ago

Even as far right as I am... I doubt cutting corporate taxes will do anything for jobs. I see the exhisting companines pocketing the money and very few...if any moving to our state.

The same profit windfall will happen if Obamacare happens. The corporations will move its employees to the government teat and pocket the money they had been spending.

What needs to happen is for the government to gtfo of private business, and quit competing with it. All you greenies need to move to an island and those of us who what to generate income should be left alone.

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irvan moore 3 years, 2 months ago

maybe all us old people on fixed incomes will be paying higher taxes to make up for it and the kids can have worse schools and there won't be enough policemen or fireman.

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Kim Murphree 3 years, 2 months ago

Here's what I don't get--corporations are treated as individuals--that's a Supreme Court Decision--so they have RIGHTS like individuals do--if that's the case, then they should also have to pay INCOME TAXES like the rest of the individuals of this state do. But, let's be clear, this is a machination of the Koch Brothers. Never doubt for a moment who is at the foundation of Brownback, Kobach, and Schmidt. Your children do not matter to them, they prefer that the masses remain uneducated--educated people cause too much trouble. Take Liberty One for example---he doesn't think its necessary, and why? Because he buys into the falsity that success can come from hard work---not in the Koch world....the only success that will come from YOUR hard work and YOUR CHILDREN's hard work is THEIR success--power, etc. Watch the dismantling of education...the rhetoric that's used to make the middle class hate the education that sustains them--uses terms like elitists--identifying educated people as "them" or "the other" instead of embracing education as a way out of poverty...a tool to create and become...these people do NOT want you to have the American Dream...they've got it, and that's enough...now they just want to rest on it while your work supports it.

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Mari Aubuchon 3 years, 2 months ago

Kansas collected $244 million in corporate income tax in the 2010 fiscal year.

The proposed bill calls for corporate income taxes to be phased out over the next five years at the rate of 20% a year.

"The state has undergone six rounds of budget cuts in recent years and still faces a projected $492 million revenue shortfall in the next fiscal year."

I guess we need to add 48.8 million to that.

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ksriver2010 3 years, 2 months ago

Jobs in Kansas are going to be measured largely by aircraft jobs in Wichita, all of which will be reduced by companies breaking the unions, slowly moving to more hospitable states or Mexico (despite the state bailout of Hawker). Also low aircraft demand due to the economy and which was significantly hurt by Obama and Congress' humiliation of executives flying in small planes to congressional hearings. Nothing the state can do will change that, except maybe delay it by bailouts. But hey, meat packing plants in Dodge are doing great biz with the illegal population.

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Kookamooka 3 years, 2 months ago

It's going to be really sad to see Kansas go to Heck in a handbag. I, hopefully, will be living in Missouri by then. Never thought I'd think Missouri was a safer, better place to raise my kids. I want to live in a state with corporate oversight! Strong government is good. Without it you get Enron and the stock market crash. Businesses don't care about people. They only care about money. I want to live in a state that cares about people.

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pace 3 years, 2 months ago

I think he should concentrate on eliminating red tape. Just post the Koch brothers address and working families can send cash straight to the Church of Koch coffers.

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Centerville 3 years, 2 months ago

Hoover was like Bush 41. Big Government - bad economics. The Roosevelt overload made him look like a piker but he was bad news enough on his own.

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William Weissbeck 3 years, 2 months ago

I have to add that except for Illinois, it seems like every state is moving to cut it's corporate income tax. It's an insane race to the bottom. Let's make it simple - have every state cut their rates to zero. Oh, but then the business owners won't want to locate their businesses in states where they and their executives have to pay high income taxes - so let's lower the top rates to zero. Oh, but housing for them and their managers might be expensive and the schools - well, they might only be public schools. So what the heck, let's build them nice homes at tax payer expense (sort of like a sports stadium) and give them vouchers for the schools of their choice.

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edjayhawk 3 years, 2 months ago

How can we be sure that businesses will create jobs with a corporate tax cut. Labor is now a commodity and they won't add jobs unless they completely need them.

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autie 3 years, 2 months ago

You can leave KDWP out of the discussion. It is the only state agency funded soley by user fees and not tax dollars. And they do a great job of it.

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MyName 3 years, 2 months ago

Gov. Brownback: "What can I say, I plan for us to have some economic growth!"

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deec 3 years, 2 months ago

Great idea. Go to a one-house legislature. It seems to work in Nebraska. Also stop renovating the Capitol. Eliminate all farm and corporate subsidies. Roll the commerce dept in with the secretary of state job, since they seem to have lots of time on their hands. Triple hunting permit fees and park usage fees. Repeal the repealer. Suspend new highway building. Eliminate STAR bonds and similar programs. Legalize marijuana and tax like cigarettes. Early release for all non-violent offenders.

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sciencegeek 3 years, 2 months ago

Here's an idea!

Since the only way to balance the budget is to make cuts, and there's is no possible way to raise revenue because that mean t-a-x-e-s, I suggest a constitutional amendment that is guaranteed to save lots of money every single year:

Cut the size of the legislature.

Kansas ranks 33rd out of 50 states in population, but 12th in the size of the Senate and 10th in the size of the House ( source: National Conference of State Legislatures). Sounds a lot like the fat and waste in state government that we hear so much about.

Seems reasonable to me.

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deec 3 years, 2 months ago

I thought the corporate tax cuts several years ago were going to magcally create jobs? What's up with that? This is just more tinkle-on economics which has worked sooo well in the last 30 years.

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William Weissbeck 3 years, 2 months ago

Tie the tax cuts to actual job creation (in Kansas) and the purchase of real equipment (preferably from a Kansas vendor), not the usual corporate jet or executive SUV masquerading as heavy equipment. After all the governor wants investment - so demand it. Don't just let them walk off with the money and hope they pass out dimes to the children.

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Liberty_One 3 years, 2 months ago

Barack Obama = Herbert Hoover. Both were big government spenders who believed in bailouts, subsides, wage controls, price controls and government planning. Hoover was an engineer who thought the government should engineer the economy. It failed miserably.

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Paul R Getto 3 years, 2 months ago

Does anyone find it ironic that the nonpartisan business placement and relocation magazines already rate Kansas as one of the better states in which to do business? Guess it just depends on who is doing the analysis. Kochkansas, where the deer and the (illegal immigrant) unicorn play. http://www.siteselection.com/features/2008/nov/Kansas/ http://www.businessfacilities.com/Rankings/BFJulAug10_STATE_RANKINGS.PDF

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Bob_Keeshan 3 years, 2 months ago

100,000 new jobs promised, and so far all he has done is eliminate a few thousand more.

Brownback owes Kansas well over 100,000 jobs to meet his promises.

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cowboy 3 years, 2 months ago

Payback to corporate buddies !

"The category where the state saw the most significant drop in tax revenue was income taxes. Individual income taxes dropped 7.24 percent to $2.73 billion in 2009. Meanwhile corporate net income taxes fell almost 30 percent to $370 million in the same time period. The Revenue Department collected about $40 million in corporate income tax settlements in the six months after the Census Bureau stopped collecting data in 2009.

Warfield said corporate income tax collections are very volatile.

“Whenever the economy does poorly so does corporate income tax collections,” Warfield said. “Whenever there is a recession and the stock market does not do well it is reflective in corporate income tax.”

Michigan suffered the largest drop in corporate net income tax, with a 63.5 percent decrease from 2008.

When all 50 states tax collections are combined for FY 2009, the total tax collections were around $715 billion, which is down 8.6 percent from 2008.

On a national average, states made the most revenue from individual income tax, then general sales taxes, then other miscellaneous taxes, and the least from corporate net income tax."

As the info states , Corporate tax is the smallest contributor to state revenue. Brownhack is simply cowtowing tothe Koch's and his other fat cat buddies. Note that the single largest contributor to fighting the health care plan , the Koch's , are also using the benefits of the plan to underwrite their retirees benefits.

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Liberty_One 3 years, 2 months ago

The real measure of cuts will be spending reductions. Kansas is already in a better position than many states, and if we continue to cut government spending, unemployment in Kansas will remain below the national average.

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autie 3 years, 2 months ago

He has also called for a "re-setting our tax code." In his State of the State speech, Brownback said, " ... we need a tax code that encourages investment, income growth, and job creation."

That there is a bunch of bull butter pure simple. Re-setting the tax code means corporate breaks that translate into higher profits. but you won't see it re-invested to create any new jobs. That is just an out and out lie. Good job Sam.

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ronwell_dobbs 3 years, 2 months ago

Let's be absolutely clear. The Republicans own this from top to bottom. If two years from now their ideas don't produce record jobs and a higher quality of life for Kansas then it is total and utter proof of the innate failure of their principles. They have absolutely no excuses if it fails. If it succeeds then they should rightfully garner all the credit. I'm willing to wait and see.

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macon47 3 years, 2 months ago

it is a shame we have so many people living in thier parents basements with college degrees , but no talent that is marketable, so they have no jobs, pay no income taxes to support the ks economy so lets just blame it on the corporatation, we hate to admit our kids are a total waste to society ,

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meggers 3 years, 2 months ago

And just how much money will the state lose in corporate tax revenue? The loss of this revenue will need to be offset somehow. Given the legislature and Brownback's actions thus far, I suspect it will mean even further cuts to social services and education. Nothing like increasing the corporate bottom line on the backs of the poor, disabled, and children.

You're doing a heckuva job, Brownie.

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jayhawk1996 3 years, 2 months ago

Good luck with that. Sounds similar to the tax swap plans implemented here in Texas five years ago. The result? A budget gap of $15 million or more, depending on how much you want cut from education, health care and other spending.

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just_another_bozo_on_this_bus 3 years, 2 months ago

" ... we need a tax code that encourages investment, income growth, and job creation."

He just fails to mention that it'll happen in China, not here.

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Jeanne Cunningham 3 years, 2 months ago

Seriously, "Bronwback". I don't care for his politics, but his name should be spelled correctly. Is there NO such thing as a spell checker in your environment? And, I know this word would need to be added - but still?

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