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Archive for Monday, January 31, 2011

Kansas Chamber urges Legislature to keep increased state sales tax, reduce corporate taxes

January 31, 2011

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— The Kansas Chamber, which fought the state sales tax increase during the last legislative session, urged legislators on Monday to keep the increase in place and use the revenue to offset elimination of the state corporate income tax.

“That is the formula other states of like size to Kansas have used to grow their economies while at the same time maintaining and improving existing government services and infrastructure,” said Kent Eckles, a spokesman for the Chamber.

Eckles spoke during the House Tax Committee hearing on a bill that would repeal the 1-cent state sales tax increase that was approved during the last session and took effect July 1. The law increased the state sales tax from 5.3 cents per dollar to 6.3 cents per dollar. It will drop to 5.7 cents per dollar in 2013.

Conservatives, who added to their number in the November election, have made repeal of the levy one of their priorities.

During the last session, a slim majority of Democrats and moderate Republicans approved the tax increase above the protests of the Kansas Chamber, the largest business lobbying group in the state. During the November election, the Chamber helped fund candidates who defeated legislators who had voted for the increase.

But on Monday, the Chamber switched gears, saying the revenues from the increase should be used to eliminate the corporate income tax. Several conservatives seemed surprised by the Kansas Chamber’s position on the bill.

No action was taken on the bill, but Tax Chair Richard Carlson, R-St. Marys, said he would probably work on the bill later this session.

The Kansas chapter of Americans for Prosperity called for the repeal of the increased state sales tax, saying the tax rate was hurting Kansas’ economic recovery.

But a coalition of education groups argued against repeal, saying the loss of revenue — about $390 million per year — would cripple state services and throw the state’s budget into a deeper hole. Highway interests and several local chambers of commerce also urged the Legislature to leave the sales tax intact. Part of the revenue goes to road projects. Gov. Sam Brownback, a Republican, also has said he opposes repeal.

Comments

RogueThrill 3 years, 11 months ago

How about we don't reduce taxes when we know we are running a half a bill deficit next year.

just_another_bozo_on_this_bus 3 years, 11 months ago

So nice of the Chamber to endorse taxing baby food so the Koch brothers can get a tax reduction.

Fatty_McButterpants 3 years, 11 months ago

Our country chose to care more about the almighty dollar than people, a long time ago... This just continues the trend.

llama726 3 years, 11 months ago

The state needs, like we all do, to put money away for leaner times. We need to run a surplus, keep some money saved up for emergencies or economic issues, and only then should we start cutting taxes.

Shardwurm 3 years, 11 months ago

Wow.

llama726 - there is no money to put away. Unless you start cutting services and payroll that is.

It is politically impossible to 'save up for a rainy day' because when there's a surplus the teachers and university vampires come out demanding every dime of it in un-deserved pay raises.

The simple fact is that people who don't make much money want to take it from the people who do. Those who have less want the State to provide more for them because it is their 'right.'

Resolve that conflict without emptying the pockets of those who likewise deserve the rewards for their efforts and you'll solve a lot of problems.

just_another_bozo_on_this_bus 3 years, 11 months ago

Blah, blah, blah, stupid, lazy, poor people, blah, blah, blah, angelic, smart, hard-working rich, people, blah, blah, blah.

matchbox81 3 years, 11 months ago

From what I've seen in a couple of states, it's not the "teachers and university vampires", it's the "fiscal conservatives" that want to take any surplus and redistribute it to the voters in $2.50 chunks, only to be shocked a few years later when the State can't handle any economic bumps. That's why I was glad to see Parkinson endorse the idea of a legally mandated rainy day fund that would be funded when tax revenues are over a certain threshold.

Jimo 3 years, 10 months ago

The simple fact is that those blessed with money are those who benefit most from the services that tax revenues make provision for. Those with the most money do not gain it like manna from heaven but as a consequence of the economic, political, and legal structure the People choose to put in place. If you want "to be an island" I suggest you look for one somewhere else. In America, you pay your way, not live off the welfare of your fellow Americans. There's no having your cake and eating it too.

"Un-deserved pay raises" ? Please explain how your Wall Street banker buddies deserve their vast sums? By my counting, the "Finance" industry hasn't created a single net dollar of wealth in the last century - just periods of significant wealth creation followed by periods of massive wealth destruction.

Randall Uhrich 3 years, 11 months ago

"But on Monday, the Chamber switched gears, saying the revenues from the increase should be used to eliminate the corporate income tax." Yeah, right. It won't hurt anybody but the poor (and midddle class), and they're used to suffering. The Chamber (of Commerce?) is the most pervasive, corrupt, and heavy-handed lobbying organization ever, and you can bet anything they promote is bad for the common good.

coderob 3 years, 11 months ago

This headline should actually read: "Kansas Chamber urges Legislature to steal from the poor and give to the rich."

Most of us would hardly notice paying an extra dollar or two in taxes at the grocery store, but that's quite a different story for anyone on a fixed income or anyone grubbing for coins on Mass. I just don't see the logic in ending poverty by having poor people give up even more of their money.

Reducing corporate taxes is just as bad an idea. Ireland did it, and for a while corporations moved there. But with the crisis Ireland has to increase corporate taxes again, eliminating the principle reason businesses moved there in the first place. Now the corporations are gone because they lost the low taxes and people are leaving Ireland in droves because they can't find work. Playing with tax rates to attract businesses is just not long term sustainable economic policy. It's just policy for politicians to look good for a few years and get reelected.

Jimo 3 years, 10 months ago

How very sad for the Tea Party, betrayed while yet still in the cradle ---- GOP: let's just keep that regressive tax revenue on the poor!

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