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Archive for Tuesday, August 7, 2012

Statehouse Live: Brownback, Laffer to be at forum to discuss how tax cuts will help businesses

August 7, 2012

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— Gov. Sam Brownback and his tax-cutting consultant, nationally known economist Arthur Laffer, will be on hand next week for a forum on how Brownback's controversial tax cuts will benefit businesses, the Kansas Department of Commerce announced Tuesday.

The Kansas Small Business Forum will be from 1 p.m. to 4:30 p.m. Aug. 14 in the Capitol Federal Conference Center, Regnier Center at Johnson County Community College in Overland Park.

Laffer is founder and chief executive officer of Laffer Associates in Nashville, Tenn., and was a member of President Ronald Reagan's Economic Advisory Policy Board.

Laffer, considered the father of supply-side economics, was hired by Brownback for $75,000 to do consulting work on the governor's tax plan.

Brownback signed into law a plan that will cut individual income tax rates for 2013 and eliminate income taxes for the owners of 191,000 businesses.

Coupled with the sales tax reduction already scheduled for July 2013, the tax cuts will provide $231 million in tax relief for the fiscal year beginning July 1. That annual figure is projected to grow to $934 million after six years.

Critics of the tax cuts say they will force budget cuts in schools, public safety and social services.

The nonpartisan Legislative Research Department said the tax cuts will show a budget shortfall by July 2014. The researchers' projections show cumulative shortfalls over five years exceeding $2.5 billion.

Brownback, Kansas Commerce Secretary Pat George and Revenue Secretary Nick Jordan will be at the forum.

In addition to Laffer, other featured speakers will include Thom Ruhe, vice president of entrepreneurship at the Kauffman Foundation, and Gary Allerheiligen, former president of the Kansas Society of CPAs. The cost of Laffer's appearance is part of his original $75,000 contract, a state Commerce official said.

A panel will include state Rep. Marvin Kleeb, R-Overland Park, Peter Newman, a CPA and host of KMBZ Radio's "Moneyline," Doug Furnell, owner of Western Metal Co. in Louisburg; and Kevin Tubbesing, owner of The Land Source, in Kansas City, Kan.

Comments

autie 2 years, 4 months ago

I would love to know and understand how this is going to work. We cut the taxes for a bunch of business...so the owner has more disposable income....which saves on average how much a year for the small business? So now the business man is going to create a new job with his new found profits....and the state will generate more revenue because the new workers...? pay taxes? A laugher brought to us by Laffer, only $75000.

Maybe Mr. Furnell and Mr. Tubbesing are going to tell everyone just how many new jobs their companies have planned so far.

For the majority of small businesses that will enjoy the breaks the difference isn't enough to make one job, let alone thousands.

deec 2 years, 4 months ago

It's magical, just like selling off administration of Medicaid is going to magically save $200 million per year, even though reimbursement rates will stay the same, qualification criteria will stay the same and more services will be offered. Adding a second layer of bureaucracy and taking profits along with better service will magically save money.

chootspa 2 years, 4 months ago

If you cut Laffer's credibility enough, he'll actually get more support from Cato and Koch, and it will be like he's not a widely discredited economist with demonstrably bad ideas. He'll scribble it down for you on a napkin for only $75,000 of dwindling taxpayer funds.

chootspa 2 years, 4 months ago

So did anyone inform Brownback that all Laffer did for Reagan was balloon the deficit and force Bush Sr to raise taxes?

verity 2 years, 4 months ago

Which, as I recall, brought us the Clinton administration. Maybe Kansas will be so lucky!

chootspa 2 years, 4 months ago

Kansas doesn't have the luxury of reckless deficit spending to pad their recovery efforts. This mess will take decades to clean up.

verity 2 years, 4 months ago

Couldn't they just have read the book for $17.50 or so?

JackMcKee 2 years, 4 months ago

Just in case you missed it:

Freightquote jumping the metro border from Lenexa to KC, bringing 1,225 jobs BY KEVIN COLLISON

Read more here: http://www.kansascity.com/2012/08/03/3741009/freightquote-jumping-the-metro.html#storylink=cpy

JackMcKee 2 years, 4 months ago

For those keeping score at home, that's a Kansas business jumping state lines to a different state AND city with income taxes. This plan isn't working out like you planned, is it Brownback.

overthemoon 2 years, 4 months ago

Everyone who worked with laffer under Reagan thinks he's a fool's idiot.

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