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Archive for Wednesday, May 16, 2012

New tax-cutting plan emerges; Brownback urges passage

May 16, 2012

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— A new tax-cutting plan emerged Wednesday and quickly gained the support of Gov. Sam Brownback. But the proposal's fate was uncertain.

"I hope for the best but I'm not going to hazard a guess," said state Sen. Les Donovan, R-Wichita, and chair of the Senate tax committee.

Donovan accepted an offer from House negotiators that would reduce state personal income tax rates and business taxes.

Votes on the package in the full House and Senate could start as early as Thursday.

"Both chambers should approve the compromise bill and send it to me," Brownback said in a statement.

But Donovan said he doubted if Senate leaders would buy into the plan. "I don't have much hope that the Senate is going to approve this offer," he said.

A bi-partisan group of moderate Republicans and Democrats have argued for smaller tax cuts and restoring funds to education and social services that were cut during the recession.

But in recent days, the dynamics of the tax debate has gotten rough and tumble.

Brownback and House Speaker Mike O'Neal, both conservative Republicans, maneuvered a tax cut through the Legislature that would produce a deficit in the $2.5 billion to $3 billion range in 2018, according to state projections.

Even so, Brownback has said he is prepared to sign that plan into law.

The newest proposal takes a slower approach in phasing in the tax cuts, and would maintain positive ending balances in future years, according to the Kansas Legislature Research Department.

The plan would collapse the three income tax rates into two, reduce the lowest tax rate from 3.5 percent to 3 percent and set the highest rate, currently at 6.45 percent, at 5.5 percent, and then drop that gradually to 4.9 percent in 2018. It would also phase-in the elimination of taxes on non-wage income for businesses over six years. This is aimed at 191,000 businesses, such as limited liability corporations, subchapter S corporations and sole proprietorships.

The proposal also would reduce the Earned Income Tax Credit, but negotiators removed an earlier provision which would have required eligible taxpayers take either the EITC or food sales tax rebate. Under the new plan, they can take both credits.

The House's chief tax negotiator, state Rep. Richard Carlson, R-St. Marys, said he would push for House approval. "I believe it is substantially the same as our original conference committee report," he said.

Donovan said one of the best aspects of the new plan is that it is not the plan that Brownback said he could sign.

"This is good for everybody in the state," he said.

Democrats, however, were critical of the tax debate, and Brownback's threat to sign the larger tax-cutting bill. “Gov. Brownback’s Washington-style politics have resulted in Washington-style gridlock,” said House Democratic Leader Paul Davis of Lawrence. “The Legislature is stalled because Gov. Brownback is playing a game of political chicken," he said.

Comments

pace 1 year, 11 months ago

Starting on January 1st, 2012, Kansas voters must show photo identification when casting a vote in person. Some voters may be exempt from the new Photo ID requirement. Acceptable forms of photo ID are:

A driver’s license or nondriver’s identification card issued by Kansas or by another state or district of the United States;
A concealed carry of handgun license issued by Kansas or a concealed carry of handgun or weapon license issued by another state or district of the United States;
A United States passport;
An employee badge or identification document issued by a municipal, county, state, or federal government office;
A military identification document issued by the United States;
A student identification card issued by an accredited postsecondary institution of education in the state of Kansas; or
A public assistance identification card issued by a municipal, county, state or federal government office.

And if you are voting in Kansas for the first time, make sure you bring proof of your name and current address. Acceptable documents include: a current and valid photo ID, a current utility bill (including cell phone bill); a current bank statement, a current paycheck or government check, or any other current government document.

All registered voters are entitled to receive a free ID card. Information on receiving your free voter ID is available from the Kansas Secretary of State.

If you have additional questions about voting in Kansas, please contact: Kansas Secretary of State: (402) 471-2555; sos.elect@Kansas.gov

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pace 1 year, 11 months ago

Get registered to vote with your current name, at your current address, by July 17th, 2012 for the primary election and by October 16th, 2012 for the November 6, 2012 general election.

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Richard Heckler 1 year, 11 months ago

Gov Sam Brownback wants this deal signed quickly so that the legislators will get the hell out of Topeka. Then he will begin his love for "executive signings" once again as congress will not be around to get in his way. Grab your wallets!!!

This Governor Sam Brownback cannot be trusted for one second. He is a master of deception.

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Richard Heckler 1 year, 11 months ago

Public spending is under assault from the United States to Europe in the name of fighting deficits. Nobel Prize-winning economist Paul Krugman argues in his new book, "End This Depression Now!", that the hysteria over the deficit will constrain an economic recovery in a time of high unemployment and stagnating wages.

"The economics is really easy," says Krugman, "If we were to spend more money at the government level and ... rehire the schoolteachers, firefighters, police officers who have been laid off in the last several years because of cutbacks at the state and local level, we would be a long way back towards full employment. ...

Right now, there just is not enough spending, and we need the government, which can do it, to step in and provide the demand we need. ...

We’ve had austerity in the face of a recession, in a way that we have never had before since the 1930s. ... And the results are clear: it’s disastrous." Krugman writes about the economy as a columnist for the New York Times and is a professor of economics at Princeton University.

http://www.democracynow.org/2012/5/17/end_this_depression_now_paul_krugman

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mikekt 1 year, 11 months ago

Why will new businesses come to kansas? It's the sparkling Kansas beeches, the clear blue Kansas ocean, the 75 Degree year round Kansas temperatures, our snow packed Kansas mountains, our Kansas wild life parks, our crystal clear Kansas mountain streams full of fish, our huge Kansas cities and our fantastic Kan state wide Kansas arts scenes, our own worlds tallest Kansas skyscraper. That's why people will live & work in Kansas and none of that would be hear today or have been possible without Sam Brownback & the Re-Publican Party Think Tankers! Yes,...Kansans should vote for Sam Brownback & the Re-Publican Party........ Stink Tankers!??? And then..... i woke up & realized that it was all some sort of weird dream that probably came from eating bad food at some restaurant........or maybe they are doing subliminal broadcasting on my cable TV programs, or it's contained in letters to the editor columns or comment areas such as this one ( like a bad version of the Da Vinci Code, the Bible Code, Reading Tea Party Tea Leaves, etc..), to brainwash me?!

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Patricia Davis 1 year, 11 months ago

When conservative wackos stop interfering with a woman's legal reproductive rights, I'll understand they are truly for less government interference. As a woman in Oklahoma wrote regarding that state's intrusive ultrasound before abortion law: the conservatives want a government so small they can put it in my vagina.

Small business can have all the tax breaks in the world but if consumers don't have money to buy what they are selling, it's just another bankruptcy.

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kansanjayhawk 1 year, 11 months ago

Governor Brownback is attempting to change our tax structure to encourage economic growth in the private sector. A tax structure that encourages small entrepreneurs to build their businesses here with less government interference!

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Alceste 1 year, 11 months ago

It's A Mad Mad Mad Mad World

Lennie Pike: "Everybody has to pay taxes. Even businessmen that rob and steal and cheat from people everyday, even they have to pay taxes."

http://tinyurl.com/7xe9odj

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nativeson 1 year, 11 months ago

The reporting on this topic has been poor. What needs to be highlighted is the assumptions made by the state budget director regarding growth required to offset the reduction in taxes. They are unrealistic.

The budget director continues to compare Kansas to states without personal income tax such as Alaska, Florida, Nevada and Texas which have other revenue sources not available to our state.

These are the guiding principals of the plan which I believe are far-fetched.

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tjayhawk 1 year, 11 months ago

I am always amazed that liberals are so eager to turn over half of their earned income to the government. Wake up! Tax cuts have proven over and over to be good for the economy. Being pro-business is a viable solution. Tax and spend doesn't work.

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Pork_Ribs 1 year, 11 months ago

Hey Rothschild??? Now That's how you write an unbiased story. I'm sure it pained you to not rip the GOP, but we do appreciate it. Being that I am the first one to rip you for biased reporting...I thought it fitting to recognize as well when you actually report the news in a professional manner. So....Thanks!

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ibroke 1 year, 11 months ago

great! everyone needs a tax cut, thanks !

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Bob Reinsch 1 year, 11 months ago

Any plan should have a reversal contingency. If cuts are made with the intent of creating jobs, wealth and revenue, fine - but if that doesn't happen, there should be an integrated mechanism put in place to reset the system back to current levels. Of course, Sam won't go for it because the Koch brothers would never go for it. He'll pass the buck on to a future administration and live in safe denial that he wasn't the problem.

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OrestessonofAgamemnon 1 year, 11 months ago

This comment was removed by the site staff for violation of the usage agreement.

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4getabouit 1 year, 11 months ago

It will be know as "Brownback's Blunder."Ultimately, he will carry the distinction of "worst Governor in Kansas history." A failed governor, a failed political career, who hurt thousands of hard working Kansans in his attempt for personal glory. Visions of grandour unfullfilled.

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Keith Richards 1 year, 11 months ago

"The Kansas Economic Progress Council has done some quick math. They have calculated that Kansas would need to produce a half million new jobs over the next five years to generate enough income and sales tax to cover the $2 billion hole. Therefore, Kansas jobs would have to grow 50 percent over the next six years.

The KEPC compared that to the most go-go state in America — Texas. Over the past decade, job growth there was up a total of nearly 15 percent.

Read more here: http://joco913.com/news/steve-rose-the-end-of-kansas-as-we-know-it/#storylink=cpy"

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kansanjayhawk 1 year, 11 months ago

Come on we Kansans need tax relief! This is highest taxed and most regressively stat in the region!

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4getabouit 1 year, 11 months ago

So what happens and who gets the blame when Brownback's supply-side gamble fizzles?

Answer: Blackjack Brownback retires after a failed attempt to win the Republican Presidential nomination and lives off his wife's money. You....on the other hand, keep working.

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