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Letters to the Editor

A Kansas issue

June 2, 2012

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To the editor:

Contradictions within Gov. Brownback’s vision for a better Kansas, secretly created, are glaring. Should we believe his reassurance that all will be fine? Budget defects will start in Fiscal Year 2014. The governor says new jobs in the private sector will allow Kansas to bloom. Is it logical to think that creating those new jobs will make Kansas bloom?

The tax plan has businesses paying either no, or greatly reduced, tax. With extensive unemployment due to cutbacks in public services and then private administration of services, salaries and benefits will go down. Lower incomes will make for less to pay proportionately higher taxes. The deficits will only expand and quality of life deteriorate. Then we can have “bargain basement” sales of public property our taxes bought; we then lease from businesses that pay no taxes.

Social tensions divide us and also divert us from the future. The war on women, workers, public education, minorities and those most in need, create an immediate crisis plus diversion. The temptation for more security, money and power is hard to resist and can be with anyone. It is also hard in our demanding lives to look beyond today and not believe what sounds good. Thoughtful decisions take work, but our future and that of our children are in the balance. This is a Kansas issue, not a partisan issue!

Comments

cato_the_elder 2 years, 6 months ago

"The tax plan has businesses paying either no, or greatly reduced, tax."

That's completely misleading in a number of ways. Larger (Subchapter C) corporations, including out-of-state corporations, will still pay Kansas income tax, as they always have. More importantly, the statement that businesses will pay "no or greatly reduced tax" applies as a practical matter only to some Kansas businesses, generally small, closely-held entities, and utterly disregards the fact that all Kansas businesses will still pay federal taxes of all kinds at rates that have always been much higher than Kansas income tax rates have ever been. No Kansas governor can, with a stroke of a pen, eliminate the significant federal tax burden that applies to all businesses.

While I agree that the new tax legislation signed into law by Governor Brownback is indeed a gamble and is not what many of us, including a significant number of Kansas Republicans, would have preferred, the kind of incessant class warfare and ignorant propaganda found in this ridiculously partisan letter to the editor solves nothing.

cato_the_elder 2 years, 6 months ago

If you knew anything about it, you would know that many corporations cannot practically function as Subchapter S Corporations, regardless of any potential tax implications in Kansas or anywhere else.

cato_the_elder 2 years, 6 months ago

But won't, as I've explained. I would suggest that you read up on it.

JackMcKee 2 years, 6 months ago

C corps are not going to go through reorgs because of this change. There are significant costs and complications to do that and like Cato posted there are significant restrictions on who can even operate as an S Corp. I disagree with Cato on the corporate income tax, it generates a paltry portion of the Kansas budget. This law eliminates $3 billion of tax revenue. The drop in the bucket corporate income tax won't make a dent in that number.

JackMcKee 2 years, 6 months ago

I think what you will see is an explosion of LLCs and trusts to hold investment assets in households earning more than about $3,000 per year in income from those assets. Which, ironically is going to be a boon to lawyers and accountants and increase compliance costs. Which I think is the opposite of the goal of the people behind these changes.

JackMcKee 2 years, 6 months ago

From what I've read about the law (I have. it read the actual bill yet) all business income is exempt so I assume that means income reported on Scedule C or from pass through entities. If that is the case people won't need to change their sole prop to an S Corp or pship to an LLC/S Corp. So the biggest tax planning point will be from the standpoint of non Sch C income and how to convert it to non taxable income.

JackMcKee 2 years, 6 months ago

of course, reporters are well known for misreporting the actual content of bills so take this with a grain of salt. All I know at the moment is what has been written in this newspaper.

JackMcKee 2 years, 6 months ago

sorry pship is already a pass through. Typing faster than thinking.

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