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Archive for Saturday, March 10, 2012

Senators tout tax plan to bring jobs

March 10, 2012

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— Senate Republican leaders on Friday introduced tax incentives that they said will increase bioscience and manufacturing jobs in Kansas without harming the state budget.

The “Kansas Works” plan would allow bioscience companies relocating to Kansas to pay no income tax if they forgo other state tax incentives.

For manufacturing companies, it would tax the income of new businesses only on sales within the state.

Senate President Steve Morris, R-Hugoton, said the measures came from recommendations of his tax working group that met earlier this year, and are modeled after proposals made in South Dakota, which has been landing financial services companies, and Iowa’s efforts to get insurance companies.

Morris said the proposals would reduce revenues to the state from $400,000 at first to $4 million. But Morris, Senate Vice President John Vratil, R-Leawood, and Majority Leader Jay Scott Emler, R-Lindsborg, said the loss would be offset by the benefit from increased jobs and economic activity.

The measures have been endorsed by 17 of the Senate’s 32 Republicans. Senate Democratic Leader Anthony Hensley of Topeka said he supports the proposal too.

Senate leaders said the bioscience measure would build on the Kansas Bioscience Authority’s mission to invest in research and development of start-up companies, and the Kansas University School of Pharmacy’s high national ranking.

The manufacturing piece of the plan, they said, would provide a powerful financial incentive for companies to build and hire in Kansas and ship products out of state.

The “Kansas Works” proposal is contained in two bills that will be considered next week by the Senate tax committee.

Comments

Michael LoBurgio 2 years, 9 months ago

Brownbacks tax cuts = Class Warfare To compensate for these reductions in income taxes, the Governor’s plan eliminates itemized deductions (including home mortgage interest and charitable contributions). It eliminates incentives for 529 education savings programs and long-term care insurance premiums. It eliminates the refund for sales tax on food for low-income Kansans. I also understand it eliminates part of the Homestead property tax refund.

The plan also eliminates tax credits for: * Adoption * Alternative fuel tax * Assistive technology contribution * Child and dependent care * Child day care assistance * Community service contribution * Disabled access * Earned income (EITC) * Environmental compliance * Historic preservation * Individual development account * National Guard employer health insurance * Small employer health benefit plan * Temporary assistance to families contribution * and more.

It appears that this plan moves the tax burden from the richest Kansans to the middle class and poorest Kansans. For example, sales tax is the most regressive tax we have. Making the 1% sales tax increase permanent not only reneges on our promise to remove the sales tax increase, it puts a disproportionate burden on low-income families. Removing the refund for sales tax on food and the Earned Income Tax Credit is a double whammy for the poorest working Kansans. In fact, President Ronald Reagan once said the Earned Income Tax Credit was “the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress.”

Eliminating the deduction for home mortgage discourages home purchases for the middle class. Cutting the upper marginal income tax rate benefits the richest Kansans the most. Low-income Kansans can buy a Big Mac with their income tax cut while the folks at the top can buy a yacht with theirs. Not only that, when the income tax is eliminated altogether, there will only be sales and property taxes left to pay the bills.

Michael LoBurgio 2 years, 9 months ago

Robin Hood in Reverse: Kansas Bill Raises Taxes On The Poor While Cutting Them For The Rich

A Kansas House tax committee passed a bill in which anyone making less than $25,000 a year — roughly half a million of the state’s 2.9 million residents — will pay an average of $72 more in taxes, while those making more than $250,000 — about 21,000 people — will see a $1,500 cut, according to Kansas Department of Revenue estimates cited by the Kansas City Star.

The hike would come from the elimination of tax credits typically benefitting the poor.

http://www.alternet.org/newsandviews/article/817777/robin_hood_in_reverse:_kansas_bill_raises_taxes_on_the_poor_while_cutting_them_for_the_rich/

Michael LoBurgio 2 years, 9 months ago

Kansas road builders blast House income tax reduction proposal

Kansas road builders are upset over a proposal in the state House to withhold $351 million from state highway projects in order to help cut state income-tax rates for families and small businesses.

“There has got to be a better way to reduce personal and corporate income taxes than taking it out of highway construction,” said Brian Hansen, of Dustrol Inc., a major state highway contractor in Towanda.

“Kansas legislators in the last 20 years of highway programs already have ‘borrowed’ more than $1.5 billion, which they’ve never paid back,” Hansen said. “This would decimate our business.”

http://statehousenewsonline.com/2012/02/14/road-builders-blast-a-ks-house-tax-reduction-plan/

TongiJayhawk 2 years, 9 months ago

It's time the tax bill is shared by all folks. Everyone needs some skin in the game. $6 bucks a month more, maybe skip McDonalds once month. Also, I would like to see the figure of how much free stuff folks are getting. Lets add up some of the freebie programs, food assistance (vision card), more free food ((SRS) food distribution program), rent assistance, heat assistance (Low Income Energy Assistance Program) Free healthcare (Medicaid and HealthWave), Refuge assistance (Kansas Refugee Program) school lunch and breakfast programs, SRS cash assistance, SRS child care, Family preservation services, Grandparents as Caregivers Assistance, 99 weeks of unemployment, Child tax credit on the federal side, where folks are actually making a profit (more than they pay in) when they do a federal tax return.

Maybe it's time for this county to do a little more for themselves and little less looking for handouts, or complaining anytime there is a mention they might have to contribute something!

just_another_bozo_on_this_bus 2 years, 9 months ago

"Also, I would like to see the figure of how much free stuff folks are getting."

For what purpose? Do you want to just cut them all off, starve them and freeze them to death?

TongiJayhawk 2 years, 9 months ago

We went from contributing $6 a month to starving and freezing folks to death!?!?

jhawkinsf 2 years, 9 months ago

"For what purpose?" For the purpose of determining one's true income. If a person has monetary income of say "X" but they then receive other benefits such as subsidized housing, food stamps, or other charitable benefits valued at say "Y", then their true income would be X + Y. It's just information. We could then discuss policy decisions based on more accurate information. Surely you cannot be arguing for less information as opposed to more information.

pace 2 years, 9 months ago

You got it. Handouts for the rich and favors for the friends of Kochbacks are a much worse problem. Our government corrupted by rich special interest is a danger for every working family in this state. Special rights for the (not) job creators. We must clean the state house, again. It will take decades to rebuild infrastructure being destroyed or sold for pennies on a dollar by Brownback and Koch bros. We should be investing in education and training, not in the enrichment of billioanairs at the cost of the average taxpayer. Fair taxes should not be considered radical in Kansas.

jafs 2 years, 9 months ago

And yet, this proposal eliminates income tax for corporations.

I assume given your post that you oppose that proposal.

TongiJayhawk 2 years, 9 months ago

No, I would prefer we raise the corporate taxes, to a level high enough to get all businesses to move out of Kansas and tax their high paying jobs with them!

jafs 2 years, 9 months ago

I get the sarcasm.

So, you want everybody to have skin in the game, except for corporations, which get a tax-free ride.

Lacks consistency.

Jan Rolls 2 years, 9 months ago

You are and idiot if you think everyone is receiving "free stuff". You sound like those crazy gop candidates. Did you ever once consider that some people need help. What would you do with tax money give it to the rich?

Greg Cooper 2 years, 9 months ago

"Idiot". This is not supposed to be a useable term on this site. How about it, LJW?

And fido, I agree in principle with you, but can you use a little less strident term?

TongiJayhawk 2 years, 9 months ago

Who said anything about everyone receiving "free stuff" Yes, people need help that is why all those programs and more are in place. No one said stop any of those programs, just stop b*tching about $6 a month.

TongiJayhawk 2 years, 9 months ago

"A study conducted by psychologists at the University of California, Berkeley" HaHa no bias there!

Richard Heckler 2 years, 9 months ago

32 years of Reaganomics have produced an estimated 20 million USA workers still looking for jobs. Jobs that can sustain families, purchase homes and groceries. Brownback leadership cannot accomplish that feat. In the last 32 years republicans have sent the economy down the tubes twice in a big way = this is what Brownback represents.

Sam Brownback is a failure!

Kansas needs jobs. Retaining Bush tax cuts plus more Brownback tax cuts and putting forth zero job bills is not the answer.

  1. Following the economic direction of Tea Party Neoconservative Republicans frustrates the entire planet. Jobs create revenue tax cuts do not. Jobs create other jobs. Kansas needs jobs not tax incentives for the wealthy

  2. This state government MUST step up to the plate. Establish a major 3 year Kansas job program. USA industry does not want to employ americans they prefer the Chinese job market.

  3. I want my tax dollars putting people to work making money and creating new economic growth. This is a best bang for the tax buck. Put people to work rehabilitating federal highways and bring on cleaner energy NOT more nasty nuke and coal energy that adds a ton more tax dollar liability on the taxpayers back.

TongiJayhawk 2 years, 9 months ago

32 years? Uh.... the unemployment rate had been low until just the past few years. I believe it has already hit bottom, the country and state will come back strong despite the government (Democrats or Republicans) The economy goes in cycles and I think you are giving to much credit to the government. The tax revenue and the economic numbers are improving in Kansas, are you going to credit Brownback for those numbers?

jafs 2 years, 9 months ago

So, we'll lose $4 million, but we should be confident that we'll get it back.

Sounds like a risky move to me - where's the evidence or proof that will happen?

Greg Cooper 2 years, 9 months ago

Comes from the same place where giving tax breaks to corporations will result in jobs, aka "trickle down". Same song, different verse.

It has not worked in the past and will not work in the future.

Any time Brownback and Company say that we should expect something, you can bet it will never materialize. (Other than the fact that the corporations in question will not have to pay as much tax as the poorest Kansans, that is.)

sciencegeek 2 years, 9 months ago

There is no justification for cutting income taxes in Kansas. It is being pushed by the Brownback administration because it is part of their philosophy, that of AFP and Koch and Laffer. It has absolutely no basis in reality.

Studies have shown that Kansas ranks poorly in support of business, not because of income tax rates but because it has some of the highest property and sales tax rates in the country. The details appeared recently in the Wichita Eagle:

http://www.kansas.com/2012/03/09/2247644/property-tax-problem.html

This administration hears what it wants to hear, does what is wants to do, and to hell with anyone who disagrees. Their arrogance is unparallelled. By the next election, Kansas will be damaged beyond repair.

Jan Rolls 2 years, 9 months ago

11 plus years of bush tax cuts to create jobs. Where in the heck are the jobs. Repulican lies.

Liberty275 2 years, 9 months ago

Not a bad idea. Bio science can bring jobs for scholars and everyone down, from the college grad lab assistant to the guy that digs the foundation. Of course, in exchange for the tax cut, the company should be required to expend some of their talent developing resources that benefit the state's society as a whole. Maybe we can find one to genetically modify tofu beans to grow in the Haskell mud hole.

We want the best, so our wonderful government should continue sponsoring Monsanto.

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