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Archive for Tuesday, September 25, 2012

Business leaders tell Brownback to publicize tax cuts to businesses

September 25, 2012

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— Business leader allies of Gov. Sam Brownback on Tuesday told the governor that his administration needed to do more to get the message out that many businesses were going to get a big tax cut next year.

Ivan Crossland, chief executive officer of Crossland Construction, said that when he talks to business owners they are unaware of the upcoming tax cuts.

“No one knows about the new tax structure,” Crossland said. “You’d think they would know.” He said business owners need to know about the tax cuts so they will “invest in the economy.”

David Murfin, president of Murfin Drilling, said a lot of business heads don’t believe the tax cuts are coming.

The comments from Murfin and Crossland came at the end of the Governor’s Council of Economic Advisors meeting. Both Murfin and Crossland, along with the Wichita-based Koch brothers, contributed to a group of Brownback-backed conservative Republicans who defeated incumbent Republicans in the recent GOP primary.

Brownback said his administration has conducted some seminars on the tax cuts, but added, “We need to get this out in the social media. Maybe we need to start a ‘Believe it’ campaign,” he said.

Brownback signed into law cuts that will exempt the owners of 191,000 partnerships, sole proprietorships and other businesses from income taxes. In addition, the new law also will decrease the individual income tax rates for 2013, with the top rate dropping to 4.9 percent from 6.45 percent.

Comments

tolawdjk 2 years, 2 months ago

This leads to some interesting thoughts.

1) While business heads heard about the tax cuts, they don't believe the Gov. that they will actually happen.

2) Small business didn't really clamor for these cuts in the first place and therefore didn't look for them to be passed. This is the first time they are hearing about it.

3) Let's examine who is doing the talking here. Crossland Construction. From this admittedly small sample set, Crossland Construction appears to be telling Brownback that businesses aren't investing the money that would have been going to taxes into physical construction and property growth. Crossland Construction is telling the Gov.'s PR dept they need to spend advertisement dollars so Crossland Construction can get more money.

4) Business people just aren't that smart.

I know 4) isn't an option. you don't survive in business without some level of smarts. 2) seems unlikely, as this tax cut has been all over the news and was a major push for the Gov. It could be a bit of 1), and 3) is obviously going on.

I also think this is one more impending sign that the Gov. was wearing rose colored glasses and this thing is doomed to fail.

gccs14r 2 years, 2 months ago

I'm betting that a lot of this would-be tax money will end up offshore or otherwise squirreled away. Meanwhile we're trying desperately to nudge Mississippi off the bottom of the economic ladder by digging under them to add a rung.

headdoctor 2 years, 2 months ago

I would guess the businesses may be waiting to see how the interpretation of the law is translated in the K-40 form. In many cases involving small business the business income is the personal income of the filer. Through the tax code businesses already get breaks that non-business filers don't get and this wont effect the Federal tax. The question will be is how the adjustments are handled on the K-40 form to correct the Federal amount to the Kansas amount and how Kansas is going to verify those adjustments.

The biggest insult to non-business filers is that this move really isn't that much about getting a business break. It is about avoiding personal income tax by those who own businesses.

Lane Signal 2 years, 2 months ago

Brownie needs to get that message out to business. Any business that moves to Kansas can look forward to lower taxes. Also, as the new tax structure and new agenda take hold, these businesses can look forward to a workforce that is under educated, under insured, lacking in basic government services and heavily armed. Businesses can be sure that little or no money will be wasted on academic institutions with whom they might wish to partner and to whom they will look for skilled workers. Businesses can be confident that Kansas will continue to build a reputation for being as bigoted and narrow minded that will discourage skilled workers from moving here.Next stop the silicon prairie. Heck of a job Brownie.

Phillbert 2 years, 2 months ago

What? Businesses haven't heard of the tax cuts? I thought businesspeople make every decision based entirely on the tax code, at least according to what Republicans tell us. You'd think if that were true then businesses would all pay attention to every change in the tax code, ready to pick up and move at a moment's notice.

George_Braziller 2 years, 2 months ago

Scam Sam's administration just digs a deeper hole every day showing the complete incompetence. When even conservative high dollar contributors are questioning his policies he should be bright enough to accept the reality that he's a complete disaster as Governor.

George_Braziller 2 years, 2 months ago

Sam's not very bright but he for some reason has "charisma." I have have a friend I've known for more than 20 years who attended law school with him at KU at the same time. She said he was a bit creepy even then.

Armstrong 2 years, 2 months ago

Never fear Sam, Rothy is on the job. No doubt the story is fair and balanced

Richard Heckler 2 years, 2 months ago

Isn't odd that so called government haters and anti tax clowns never get off tax dollar payrolls and receive benefits from the government after leaving office.

How about a means test to decide if elected officials NEED this government assistance? As Sam Brownback is said to be worth about $6,000,000. Did he gather some of that wealth through insider trading privileges that is afforded elected government officials?

oldexbeat 2 years, 2 months ago

Pushed by Koch Brothers' Kansas Chamber of Commerce

(see: http://www.kansaschamber.org/pressreleases/traditional-republicans-show-their-true-colors-2/ )

Why is Lawrence Memorial Hospital a member of this anti-rational, tea party chamber ?

jesse499 2 years, 2 months ago

These are the same tax cuts that are going to bring in all this new business right? I'm thinking all it's going to bring in is a lot more taxes on us down the rode when all this new business doesn't show up and they get behind we get to make it up. And Brownback will be out of office and tripping on down the road looking for someone else to screw.

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