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Archive for Friday, January 13, 2012

What Kansas taxpayers could expect under the governor’s proposal

January 13, 2012

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— Gov. Sam Brownback is pushing a plan to cut the state income tax and do away with numerous exemptions and deductions. His plan would also keep in place the 6.3 percent state sales tax, which was scheduled to decrease to 5.7 percent in 2013.

Here is a comparison of some state income tax scenarios between current law and if Brownback’s plan were in effect. The numbers were produced by the Kansas Department of Revenue and released by Democratic legislators. Revenue Secretary Nick Jordan downplayed the numbers because he said they don’t reflect other parts of the governor’s plan, which includes using funds from eliminating the Earned Income Tax Credit to lure matching federal dollars and putting those funds into programs aimed at helping the poor.

Taxpayer: Single, itemized deductions, Kansas adjusted gross income of $18,880.

Current: Pays $222

Brownback: Pays $409

Change in tax: Increase of $187

Taxpayer: Single, standard deductions, Kansas adjusted gross income of $17,450.

Current: Pays $393

Brownback: Pays $366

Change in tax: Cut of $27

Taxpayer: Head of household, one child, itemized deductions, Kansas adjusted gross income of $20,200.

Current: Refund of $387

Brownback: Pays $66

Change in tax: Increase of $453

Taxpayer: Head of household, one child, standard deductions, Kansas adjusted gross income of $20,000.

Current: Refund of $382

Brownback: Pays $60

Change in tax: Increase of $442

Taxpayer: Married filing joint, no children, business income, itemized deductions, business credits, Kansas adjusted gross income of $75,610.

Current: Pays $407

Brownback: Pays $303

Change in tax: Cut of $104

Taxpayer: Married filing joint, one child, itemized deduction, Kansas adjusted gross income of $65,000.

Current: Pays $1,823

Brownback: Pays $1,990

Change in tax: Increase of $167

Taxpayer: Married filing joint, one child, standard deduction, Kansas adjusted gross income of $64,930.

Current: $2,412

Brownback: $1,987

Change in tax: Cut of $425

Taxpayer: Married filing joint, no children, itemized deductions, business income, Kansas adjusted gross income of $50,582.

Current: Pays $954

Brownback: $0

Change in tax: Cut of $954

Taxpayer: Head of household, one child, standard deductions, Kansas adjusted gross income of $35,000.

Current: Pays $1,060

Brownback: $641

Change in tax: Cut of $419

Taxpayer: Married filing joint, no children, itemized deduction, Kansas adjusted gross income of $125,759

Current: Pays $4,582

Brownback: Pays $5,078

Change in tax: Increase of $495

Taxpayer: Married filing joint, three children, itemized deduction, Kansas adjusted gross income of $1,090,984.

Current: Pays $30,147

Brownback: Pays $52,043

Change in tax: Increase of $21,896

Taxpayer: Married filing joint, two children, standard deduction, Kansas adjusted gross income of $22,350

Current: Refund of $607

Brownback: Pays $221

Change in tax: Increase of $827

Taxpayer: Married filing joint, two children, itemized deduction, Kansas adjusted gross income of $50,000.

Current: Pays $1,113

Brownback: $1,145

Change in tax: Increase of $33

Taxpayer: Single, standard deduction, Kansas adjusted gross income of $40,000.

Current: Pays $1,769

Brownback: Pays $1,418

Change in tax: Increase of $351

Comments

Jan Rolls 2 years, 11 months ago

My property taxes are too high now. The deduction is way more than I would get under this lousy plan. These people have no common sense.

JackMcKee 2 years, 11 months ago

None of this takes into account the increased sales and property taxes we're all going to be facing.

Sunny Parker 2 years, 11 months ago

Lawrence needs to ditch that library plan and balance the check book....us tax payers can't afford any of this!

Bob_Keeshan 2 years, 11 months ago

Brownback has proposed the largest tax increase in Kansas history by hiding it behind a tax cut for corporations.

verity 2 years, 11 months ago

Instead of just bitching, do something. Flood his phone lines, overflow his email---let him know that we won't be led like sheep to the slaughter.

Kendall Simmons 2 years, 11 months ago

Why? So that we can pay higher property and sales taxes? So that we can watch public services disappear? (And I'm talking about things like roads and bridges, not "luxuries" like public libraries or public schools.)

It's not just liberals who can be idealistically absurd. Too bad folks like you don't realize this.

Phillbert 2 years, 11 months ago

Well what do you know, under Brownback's tax "cut" I'd get a tax increase. As would a lot of other people, it appears.

verity 2 years, 11 months ago

Not only will the income taxes of many of us increase, anybody who thought they were planning wisely for their retirement by investing in a comfortable and affordable house and saving money in things like Roth IRAs will see their property taxes increase to make up for lowering income taxes on the higher income brackets.

Let Brownback know that you do not approve of what he's trying to do, but more importantly let your state senators and representatives know.

ebyrdstarr 2 years, 11 months ago

And don't forget we'll no longer be able to deduct our property tax payments from our taxable income, so while we're paying more in property taxes, we'll also have to pay income tax on it! How awesome is that?

verity 2 years, 11 months ago

Ebyrdstarr, I missed that---

Brownback's website isn't responding, maybe it's already being flooded?

If you don't know who your state legislators are:

http://www.kansas.gov/government/elected-officials/

Click on "Kansas Legislators" then "Find Your Legislator (by map)" on the upper left. The "FInd Your Legislator" button lower down will only help you if you know who they are.

Richard Heckler 2 years, 11 months ago

The top 400 earners in the U.S. paid an average tax rate of 18 percent, according to a Bloomberg TV report noticed by Think Progress. And though that's a far lower rate than the 26.5 percent that many families making less than $100,000 pay annually in taxes, some of America's super-rich have been able to whittle their tax bill down even more, paying a tax rate as low as one percent, according to Bloomberg.

How? Many of the super rich take advantage of a variety of tax loopholes to lower their tax burden. For some of America's rich, most of their wealth comes from stock appreciation, according to Bloomberg, which some billionaires don't end up defining as taxable income.

These findings echo earlier reports, which suggest that the super rich may not be paying their full share in taxes. More than 1,400 millionaires paid no U.S. income taxes in 2009, according to an August report from the Internal Revenue Service.

In addition, 25 percent of all millionaires pay a smaller percentage of their income taxes than millions of middle class households.

But billionaires aren't the only ones that use loopholes to pay lower taxes. Thirty of America's most profitable corporations used rules like the "active financing exception" -- allowing corporations to sidestep paying taxes on overseas profits if they were derived by "actively financing" some activity or deal -- to pay less than zero in income taxes, according to a recent report from the Center for Tax Justice.

Though many super wealthy Americans and very rich corporations use loopholes to lower their tax burden, some have advocated for raising taxes on themselves. Warren Buffett became the most prominent advocate for raising taxes on the rich when he wrote an op-ed in The New York Times in August encouraging lawmakers to raise taxes on millionaires so that they pay the same or higher rate as middle class earners.

Earlier this week, a band of millionaires went to Capitol Hill to lobby Congress to raise their taxes. And they seem to have the support of millionaires around the country, nearly 70 percent of whom said in a survey last month that they support raising taxes on those making $1 million or more.

http://www.huffingtonpost.com/2011/11/18/billionaires-taxes_n_1102234.html

JayhawkFan1985 2 years, 11 months ago

Republicans are smart enough to know they are not in the 1%. The problem is they are dumb enough to believe that they have a shot of joining in the future. They don't have such a shot. Lightening don't strike that way...

Richard Heckler 2 years, 11 months ago

Turning Medicaid over to the medical insurance industry is risky business:

Thursday, June 25, 2009

Health insurers have forced consumers to pay billions of dollars in medical bills that the insurers themselves should have paid, according to a report released yesterday by the staff of the Senate Commerce Committee.

At a committee hearing yesterday, three health-care specialists testified that insurers go to great lengths to avoid responsibility for sick people, use deliberately incomprehensible documents to mislead consumers about their benefits, and sell "junk" policies that do not cover needed care. Rockefeller said he was exploring "why consumers get such a raw deal from their insurance companies."

The star witness at the hearing was a former public relations executive for major health insurers whose testimony boiled down to this: Don't trust the insurers.

"The industry and its backers are using fear tactics, as they did in 1994, to tar a transparent and accountable -- publicly accountable -- health-care option," said Wendell Potter, who until early last year was vice president for corporate communications at the big insurer Cigna.

Insurers make paperwork confusing because "they realize that people will just simply give up and not pursue it" if they think they have been shortchanged, Potter said.

More on this story: http://www.washingtonpost.com/wp-dyn/content/article/2009/06/24/AR2009062401636.html

Dan Thalmann 2 years, 11 months ago

Of the scenarios given, it looks like the folks making $125,000 and over a million a year are paying more taxes in this plan. That'll really screw the folks who are surely going to say he's doing this for the benefit of the rich.

JackMcKee 2 years, 11 months ago

Not quite. You need to see the assumptions that were used.

jafs 2 years, 11 months ago

That's interesting.

So you don't care whether your taxes go up or down.

Certainly an argument against the right wing one about taxes.

Richard Heckler 2 years, 11 months ago

Gov Sam Brownback among other things represents facism and increased local taxes.

The Brownback irresponsible government has big bucks behind them. Wal-Mart family money and Koch brothers are going not only after democrats but some republicans as well.

Not only that this republican party since 1980 has added a serious touch of facism to their portfolio that which forcibly suppress opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism. Turning all our tax dollars over to corporate america = facism in my definition.

Fascism promotes political violence and war as actions that create national regeneration, spirit and vitality. It views violence as a fact of life that is a necessary means to achieve human progress.

It exalts militarism as providing positive transformation in society and providing spiritual renovation, education, instilling of a will to dominate in people's character and creating national comradeship through military service.

Fascists commonly utilize organizations for violent verbal attacks on opponents or to overthrow a political system.

Democrats come in with their populist approach supporting of the rights and power of the people backed with a touch of socialism work well together.

Public education, more funding for higher education,IMPROVED Medicare Single Payer Insurance,Social Services and people employed by the government to run the admin services would be populist and socialism working together. This system also brings our tax dollars home to each of our communities.

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