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Archive for Friday, November 2, 2012

Mailers on Kansas tax cuts go out ahead of election

Kansas Department of Revenue spends $52,000 on brochures sent to businesses touting Brownback tax cuts three days before the election

November 2, 2012, 4:17 p.m. Updated November 2, 2012, 4:17 p.m.

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— Gov. Sam Brownback, a conservative Republican, earlier this year delivered a massive tax cut to business owners, and now his administration is using tax dollars to tell them about it right before the election.

Kansas Democratic Party Chair Joan Wagnon on Friday shows the mailer on tax cuts put out by Gov. Sam Brownback's administration. Democrats say the brochure was an inappropriate use of tax dollars.

Kansas Democratic Party Chair Joan Wagnon on Friday shows the mailer on tax cuts put out by Gov. Sam Brownback's administration. Democrats say the brochure was an inappropriate use of tax dollars.

Democrats, who have made opposition to the Brownback tax cuts the centerpiece of their campaigns, on Friday cried foul.

House Minority Leader Paul Davis, D-Lawrence, described the mass mailing of brochures to 146,000 business owners as a "gross misuse of taxpayer dollars."

He called on Brownback to reimburse the state from his campaign coffers the $52,000 it cost in printing and postage to mail the brochures.

"I think this is a campaign mailer that should be paid for by campaign funds," Davis said.

But Brownback defended the mailers.

In a written statement, Brownback said, “The tax mailer was sent to educate business owners affected by the change in tax policy prior to the next tax year, which starts January 1. The mailing, which answers questions about the new tax law, is a reasonable expense for the Department of Revenue."

Brownback aded, “For income tax cuts to work businesses particularly have to reinvest the money in their companies and employees. How can they do this if they don't know about the changes?"

Joan Wagnon, a former secretary of Revenue and now the chairwoman of the Kansas Democratic Party, disagreed.

She said the mailers tout the Brownback tax cuts at crucial time during the campaign season when the central issue of legislative political campaigns has been the tax cuts.The mailers were sent out Wednesday via First Class mail just six days before the election.

Democrats have argued that Brownback's tax cuts will rob needed revenue from schools and social services while providing the wealthiest Kansans with a tax cut.

The Brownback tax cuts will exempt the owners of partnerships, sole proprietorships and other businesses from income taxes. The package also decreases individual income tax rates for 2013, with the top rate dropping to 4.9 percent from 6.45 percent, and increases the standard deduction.

Jeannine Koranda, a spokeswoman for the Kansas Department of Revenue, said the agency made the decision to send out the brochures because officials realized that many business owners had basic questions about the changes.

One side of the blue and gold brochure says the tax cuts make the state's income tax system "fairer, flatter and simpler." It goes on to say "this bold action" will "provide a jolt of adrenaline to the heart of the Kansas economy," and it includes a quote from a Wall Street Journal editorial praising the changes and a quote from Brownback.

Wagnon said the brochure was much different than previous notices from the Revenue Department about tax changes. She provided a one-page, three paragraph statement issued by the agency announcing the repeal of the food sales tax rebate that was eliminated under Brownback's new tax changes.

Comments

Centerville 1 year, 5 months ago

If the tax cuts are such a disaster, what's the political advantage in publicizing them? Surely, cutting taxes, such a 'devastating' move, will only hurt Republicans? The House and Senate Democrats should send out a notice to businesses: "Hey, we voted AGAINST cutting taxes! Vote for us!" Or am I missing something?

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Paul R Getto 1 year, 5 months ago

Good for you and beware of any sentence starting with "All _" .... Generalizations about groups of people are usually wrong. I did turn in Muscular Sam for waste and/or fraud. The Repealer sent me a nice note and said they would be in touch if need be.

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jafs 1 year, 5 months ago

Most business owners have accountants, and it's their job to learn about and inform their clients of changes in tax policy, I would think.

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TJ_in_Lawrence 1 year, 5 months ago

I have no comment about this brochure, but I do take exception to a number of comments about all republicans as Liars, Cheaters, and no good people.....

I am a republican. I own my own business. I treat my employees well. I pay for 50% of a good health insurance plan for them. In the past 5 years, I have had employees who had cancer and were unable to work for more than 6 months each, and I paid them their full wage the entire time that they were off. I currently have an employee who is off waiting to have surgery and I am paying their full wages even though they are unable to work. I have loaned my employees thousands of dollars, not charging them any interest and allowing them to take several years to pay back what they have borrowed. I donate my services to mutliple schools and organizations not out of my excess, but out of my desire to help. I'm not perfect, but I am not a cheater, liar or a no good person.

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Pastor_Bedtime 1 year, 5 months ago

Coming up next: a four-color brochure explaining how cuts in social services and education benefit the state. It'll be mailed to the homeless and to elementary school students.

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Richard Heckler 1 year, 5 months ago

Vertigo gets the award today for asking the right question.... those are entitlements which do not pay back and they rely on all taxpayers to make up the difference.

These conservatives have funny ideas. At the same time they cut taxes AMC Theatre gets $47 million tax dollars to relocate to the Kansas side. Marrs Candy gets $9 million tax dollars. This seems like mismanagement not a fiscally responsible decision.

The other claim is this is "pro growth" "pro business" in spite of the fact supply side economics never brought a lot of new economic growth. This group of thinkers has been sending the best USA paying jobs and industry to other countries since Reagan/Bush.

Romney has been making zillions doing away with USA jobs. Brownback was in the beltway apparently cheering on this endeavor in addition to wandering about the country cheering on Romney for President.

Hey folks coming from republicans the word jobs is a buzzword. Prepare thyselves for another republican financial meltdown.

And we might question what city hall is doing. They are spending like drunken sailors knowing full well Brownback is cutting off the tax dollar supply to communities. Do we want more mismanagement on top of Brownback mismangement?

Bear in mind the only source of additional tax dollars is you and me.

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Roland Gunslinger 1 year, 5 months ago

69% of all corporations are organized as non-taxable business on the federal level. Brownback added them to the Kansas level as well. The percentage of all firms is far higher when partnerships and sole proprietors are included.

By some estimates, more than 60% of U.S. businesses with profits of $1 million are structured as pass-throughs.

Amongst this 69% are the following "small businesses":

Enterprise Products Partners, L.P., a pipeline company with 2009 revenues of $25 billion.

Kohlberg Kravis Roberts & Co., a Wall Street firm with $445 million in revenue in 2009.

Price Waterhouse Coopers, an accounting firm with $26 billion in revenue in 2009.

Koch Industries, a conglomerate of partnerships with 70,000 employees.

Ferrellgas, a propane and propane accessories business, with $2 billion in revenues in 2009 and 1 million customers.

CoorsTek, a ceramics manufacturer founded by Adolph Coors, with 2009 revenue of $549 million.

Dead River Co., with $500 million in revenue and 1,200 employees.

McIlhenney Co., the Tabasco maker, with $250 million in revenue in 2007.

Which begs the question... who, really, are the entitlement crowd?

http://online.wsj.com/article/SB10001424052970203733504577026361246836488.html

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lucky_guy 1 year, 5 months ago

so bd is a troll. bd's small business must be to troll online columns and say stupid stuff to make the R's feel better. I wonder if that qualifies as an LLC?

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Armored_One 1 year, 5 months ago

Ya know, I am noticing a distinct increase of people claiming to own businesses, but a distinct lack of people naming those businesses. Does running an internet porn site count as a business in this day and age?

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bd 1 year, 5 months ago

As a small business owner I was glad to recieve the informative mailer! I was not aware of these changes and I will be contacting my tax accountant to see how it will effect my business. I am thankful that they were sent out.

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Getaroom 1 year, 5 months ago

The Great Lord Brownbackward giveth and he taketh away, it is the Lords Will to create Heaven on Earth. The truth is he is simply doing what he has always done and why should we expect any different now? Lord Brownbackward is taking his ques from Lord Willard the Mitt. It's all a feel good handout designed to distract. But I am sure the state "job creators" will be happy to take it, just like Lord Willard the Mitt was happy to take car industry bailout money. But it's all perfectly legal you know, never mind moral or ethical conflicts and besides it's the Free Market W/O restraints, just the way they like it! Vote Obama 2012!

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BABBOY 1 year, 5 months ago

This flyer shows you exactly what Brownwhack thinks about your tax dollars. When it benefits him and gets him elected or makes his party stronger, he will spend your money without thinking twice about it. But, if it helps the poor or builds a school, he will not do it....

That makes him a total self centered heartless jerk off.....

Which to me defines the republican party. Liars, Cheaters, and no good people....

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nugget 1 year, 5 months ago

Ah yes, business tax cuts so the job providers--that'd include me--can hire MORE unemployed Kansans. No, sorry, I'm pocketing the money or spending it. That entire Republican line is simply b.s.

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Sharon Nottingham 1 year, 5 months ago

we are being fed a line of crap. Why not wait until next wed. to mail it? it only takes one to two days to receive mail within the state...plenty of time to view before holidays.

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jafs 1 year, 5 months ago

This is clearly not just an "educational" mailing.

It's a promotional ad for Brownback and the cuts.

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oldexbeat 1 year, 5 months ago

honesty and brownback -- not words that go together ever.

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cowboy 1 year, 5 months ago

I'll be curious to see if I get one , might have the wrong voter registration category though !

He could of just posted it on twitter #heblowsalot

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John Spencer 1 year, 5 months ago

Why didn't they just email them? In this day and age virtually all of these businesses have email. It would not have been terribly difficult to script an email from public records and save us 35-50K of the 52K, and sent out the paper versions to the few businesses that do not have email.

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JackMcKee 1 year, 5 months ago

Reminds me of a little trick Cromwell pulled with the library. Crooks on both sides of the aisle.

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jhawkinsf 1 year, 5 months ago

If Obama can manufacture some androgynous hurricane as his October surprise, just so he can look presidential, then Brownback can .... No, that argument won't work.

How about this, Democrats did it first.

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myopinion 1 year, 5 months ago

If I understand this correctly, the tax cuts go into effect in January and so will not be applied to filing tax returns until 2014 since taxes are filed for the previous year.. The rush makes no sense.

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just_another_bozo_on_this_bus 1 year, 5 months ago

"Spokeswoman Jeannine Koranda said the department began mailing the brochures Wednesday and spent $52,000 on printing and postage."

Hmm-- that's exactly the same amount that Sam's PAC has spent on electioneering over the last few weeks. Must be matching funds for Sammy's agenda, courtesy of an ever shrinking (and ever poorer) pool of taxpayers.

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Cant_have_it_both_ways 1 year, 5 months ago

I have never been offered a job, or hired by someone who lives on entitlements. Have you?

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Bob_Keeshan 1 year, 5 months ago

Apparently this $52,000 isn't part of the Department of Revenue's 10% budget cut...

How is this surprising? Brownback is a DC guy, and this is what he did for 16 years in DC.

In January, he'll be painting Cedar Crest and renaming it the White House. He's already moved all his offices from the east side of the capitol to the west wing.

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deec 1 year, 5 months ago

Didn't the tax code changes happen in late May? And they only started writing the brochure in mid-September so the info would be available before January 1. If they were so worried about getting the word out, why didn't they get the word out in June, July, or August? They wanted the info to get out as quickly as possible, so they DIDN'T send it out all summer. Weird.

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08Champs 1 year, 5 months ago

Jonas - I often vote with my dollars. PLEASE tell me what business you own so I can be sure to avoid it like the plague.....

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JonasGrumby 1 year, 5 months ago

This is legitimate. As a business owner, I've been wanting more information concerning what my income tax situation will be in less than two months. I'm beginning to think that Paul Davis is bilingual. He speaks English and Whinese.

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chootspa 1 year, 5 months ago

What a coincidence that AFP just sent me a mailing about taxes. I'm sure the governor did not in any way coordinate on that one.

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