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Archive for Tuesday, May 8, 2012

New study says proposed tax cut measure would benefit wealthy

May 8, 2012

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— One day before a potential vote on a mammoth tax-cut endorsed by Gov. Sam Brownback, a national tax study group said the proposal would increase taxes on many low- and middle-income Kansans.

The proposal, which may be debated Wednesday by the Senate, "would provide substantial tax cuts for the best off Kansans while actually increasing taxes on many low-income taxpayers because of cuts in low-income credits," according to the analysis by the Institute on Taxation and Economic Policy.

The Washington, D.C.-based ITEP is a non-profit, non-partisan group that works on state and federal tax policy, focusing on tax fairness.

Brownback, a Republican, has been pushing hard for the tax cuts, saying they will stimulate the economy and help Kansans across all income levels.

The proposal would reduce individual income tax rates and exempt 191,000 businesses from taxes on non-wage income. It would also follow current law by allowing the state sales tax to decrease from 6.3 percent to 5.7 percent next year.

ITEP said the income tax reduction and elimination of the tax on pass-through business income would reduce state revenue by $600 million annually.

The proposed cut, put together by Republicans on a House-Senate tax conference committee, would eliminate many credits and deductions aimed at helping low- and middle-income Kansans. For example, the plan would repeal a tax credit for low-income renters and require low-income filers to claim either the food sales tax rebate or the Earned Income Tax Credit.

The poorest 40 percent would see a tax increase because of the loss of credits, ITEP said. The bottom 20 percent earning less than $20,000 per year, would see a tax increase of $86 on average, according to ITEP. Meanwhile the top one percent will receive an average tax cut of $19,771, the group said.

The report's findings echoed comments by state Rep. Nile Dillmore of Wichita, the ranking Democrat on the House tax committee.

In a speech to the House on Monday during a procedural vote, Dillmore said the proposed tax cut was unfair and intellectually dishonest because it would "create a class of economic elites" of businesses that would not pay taxes to support government services. "We all have a responsibility to support government services," he said.

State Rep. Richard Carlson, R-St. Marys, disagreed, saying the business tax cuts would result in more investment and jobs.

Comments

tange 1 year, 11 months ago

And do we get to kick the downtrodden? Huh? Do we?

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tbaker 1 year, 11 months ago

Those who pay the greatest percentage of the taxes should receive a proportionate reduction when it comes time to cut them.

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usnsnp 1 year, 11 months ago

Dont know what will happen if the tax plan goes through, neither does the legislators or any of the so called experts. What I do know is that if it does not work Kansas will be in trouble, I know that the Governor and legislature will find some one to blame the failure on besides themselves. See there is no responsibility taken by these people they will just shrug their shoulders and continue trying to stay on the government gravy train, when was the last time the Governor did not hold a government job.

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seriouscat 1 year, 11 months ago

“I like to pay taxes. With them, I buy civilization.”

~Oliver Wendell Holmes

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verity 1 year, 11 months ago

Write or call your legislators. I just did---one more time. Make sure that they know that you are watching what is going on. We still are able to vote. Make use of it while you can.

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Richard Heckler 1 year, 11 months ago

Brownback is no republican = try radical Libertarian Facist

The violent crime numbers are up in the cities. Let’s take some time to think about this. Over the past 32 years millions upon millions of USA jobs went abroad and crime is up. Bring on the jobs and the crime numbers will drop.

A lot of corporate CEO’s are making substantial millions . Then walking away with a retirement bonus again more millions aka golden parachutes. A lot of of these same corporations are flooding campaign cookie jars with substantial millions more. Now we are talking billions.

Isn’t it a result of hard working Americans that made corporate American industry what it is…can we say wealthy? Why does congress support tax relief on profits made abroad? MORE tax dollar loopholes? Plus tax dollar bailouts due to mismanagement or fraud…why?

Then WE Americans are told by corp America and too many politicians that American labor cost too much money. Considering all of the reckless and corrupt spending how is it that American labor cost too much money? Folks that is nothing but nonsense.

Hard working American workers do not deserve the shaft nor should hard working Americans be expected to hand out tax relief or to bailout big banks and USA mismanaged corporations.

Put millions back to work maintaining OUR federal highway system the way it should. My tax dollars want the feds to manage the entire operation. NOT corp America CEO’s and their golden parachutes. My tax dollars want a federal level highway and bridge maintenance system to prevent maintenance neglect.

Gov Sam Brownback spends to many millions of our tax dollars bribing corporate America!

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nut_case 1 year, 11 months ago

Would be nice to have some actual numbers instead of just fluff...

OK - so $20K earners pay 0.4% more taxes

The top 1% earners? what is that $1M/yr? $500K/yr?

What about people who don't fall in either of these extremes? ie the 'most of us'?

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Michael LoBurgio 1 year, 11 months ago

How Much Will Brownback’s Tax Plan Cost You?

Governor Brownback is missing the point. If he wanted to cut taxes for EVERY Kansan he would be pushing for property tax relief.

But he doesn’t want to cut your taxes. His idea of a tax cut will actually cause your tax bill to go up.

And it comes at the expense of the schools that you and families in your community depend on. It puts even more of our most vulnerable at risk. It means state workers won’t see a decent paycheck any time soon.

Contact your legislator today and tell them to support tax relief for ALL Kansans. Tell them to focus on property tax relief, and to forget about Brownback’s income tax cuts that will cost most Kansans more than they pay today.

http://www.workingkansans.com/2012/05/how-much-will-brownbacks-tax-plan-cost-you/

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Michael LoBurgio 1 year, 11 months ago

kansas tax bill would cost $600 million a year

Kansans in the bottom 20 percent of the income distribution, those with incomes less than $20,000, will see their taxes increase by $86, on average.

By contrast, those in the top 1 percent will receive an average state tax cut of $19,771, even as that group already pays a smaller portion of its income on state and local taxes than do lower and middle-income Kansans.

http://www.itepnet.org/pdf/KSConferenceCommittee.pdf

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attorney1776 1 year, 11 months ago

"The Washington, D.C.-based ITEP is a non-profit, non-partisan group that works on state and federal tax policy, focusing on tax fairness."

Mr. Rothschild. You are free to write whatever news articles you choose and I would encourage you to do so. However, when you insert false and mis-leading information into those articles, then you diminish yourself and the journalism profession (which doesn't seem to concern many new entrants into the field these days).

Please state your facts correctly--

"ITEP is generally described as left-leaning in its policy positions and recommendations."

" ITEP’s sister organization, Citizens for Tax Justice, is often referred to as a progressive group."

It's dishonest and biased to write your article and misrepresent who produced this study and what they're politcal leanings and biases are.

If ITEP is left-leaning, simply state that and let the reading public judge. By mis-representing this organization (and thus changing the tone and validity of the article) you essentually are creating propoganda, not news articles.

This is one of the reasons your newspaper and many others are downsizing or going bankrupt. News sells, propoganda doesn't.

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Pork_Ribs 1 year, 11 months ago

Hey Rothschild? Do you even attempt to be unbiased? Anything written by you should automatically be sent to the editorial pages. This is not reporting the news. The biased language you use and the consistency in which you badger those on the right is sickening. You are unprofessional and are the perfect example of an out of control leftie media spewing propaganda. Do you really think that just slipping in one sentence at the end of the article makes this unbiased? Even though those on the left agree with you...I'm sure they are sick of you constantly trying to manipulate people with your agenda. How embarrassing for you and the leftie rag you work for. ...and here is the bottom line truth:
Scott...you are absolutely no different than Fox News or the Huffington Post.

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Fossick 1 year, 11 months ago

Hard to believe that a tax cut will primarily benefit those who pay the most taxes. What is this world coming to?

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pace 1 year, 11 months ago

Under Brownback, there will only be changes to revenue sources. The government will just squeeze the working families, while they make lower salaries. Of course some conservatives won't see degraded infrastructure as a loss, they will think it is less government. Bad laws, bad air, bad water, but great tax breaks for the rich. Nuff said.

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Liberty275 1 year, 11 months ago

So they are going to reduce my taxes? I must be elite now.

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commonsenseanyone 1 year, 11 months ago

Awesome! I can't wait to have more money! Being wealthy is so cool!

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markoo 1 year, 11 months ago

But won't it "trickle-down" to everyone else in the middle and lower class?

Won't it?

Hello?

Is this thing on?

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Gotland 1 year, 11 months ago

I am not sure how many super wealthy trust fun babies there in kansas but I suspect if you are bent on increase the size of government by taxing only them, there aren't enough.

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JayhawksandHerd 1 year, 11 months ago

"...the proposal would increase taxes on many low- and middle-income Kansans."

Derp.

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gudpoynt 1 year, 11 months ago

Mr. Dillmore is behind. There is already a class of economic elites. However, the economy is sluggish because they are not elite enough.

You see, after the onset of the financial crisis, the elite economic class in America took a big hit. Many who were once elite, became less so. Only the elitist of the elite remained, and had to pick up all the job creating slack that their once-elite brethren left behind as they plummeted all the way down to the 95th percentile of income earners.

In response, we hoisted more eliteness upon them, as can be seen in the continued growth in income disparity.

But as the economy shows, our efforts thus far have been insufficient. Clearly the additional burden has been too great, even for the heroically elite job creators that remain. They need more eliteness.

About $20K more should do the trick for sure. This will put them over the elite peak, which is the magic number at which they completely ignore their respective markets, and start stimulating the economy by creating jobs in the absence of demand.

The super elite don't care if they over produce their widgets. They just keep producing and store their surpluses in a huge vault, complete with diving board from which they may jump into big pools of their product and swim around, a la Scrooge McDuck.

You think Scrooge McDuck was anything less than super elite?

I rest my case.

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Jayhawk1958 1 year, 11 months ago

Nothing about Pink Slime Back surprises me anymore. If you can't beat them then join them. THat's what he wants to happen.

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FalseHopeNoChange 1 year, 11 months ago

Maybe the "non-wealthy" can get some free "meat" from Brownie. I hear he is giving some away. That's a benie the "Wealthy" won't be in line for.

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SeaBee 1 year, 11 months ago

I thought we knew this 2 months ago.

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FalseHopeNoChange 1 year, 11 months ago

"Of course" it will benefit the wealthy. You have to make money for "benefits". If you don't make any money. No benies. Oh well.

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tolawdjk 1 year, 11 months ago

Bah. Liberal hack organization reports are liberal hack. Brainiac has paid a lot of out of state people a lot of money to agree with what his handlers have told him to say. Who are we to question the wisdom of Brainiac's handlers?

My only wish is that they would have Tweeted these findings and they could have been formally crushed by the IT Arm of Justice.

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