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Archive for Friday, March 29, 2013

Brownback wants to keep higher state sales tax; Democrats say that proves his income tax policy isn’t working

March 29, 2013

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— Democrats said Friday that Gov. Sam Brownback's call to make the 6.3 percent state sales tax permanent is a sign that his income tax cuts have endangered the state budget.

"The real budget reality is that this tax cut for the wealthy has put us into a situation where we can't finance some of the core obligations of state government," House Minority Leader Paul Davis of Lawrence said.

Last year, Brownback signed into law cuts in state income tax rates and elimination of income taxes for nearly 200,000 business owners. This year, he has proposed more income tax cuts with the goal being the eventual elimination of the Kansas income tax.

The cuts already enacted have led to an expected budget shortfall and a scramble for revenue as Republican legislative leaders try to negotiate final spending and tax plans.

"The budget reality — what we have is we have a hole for a couple of years," Brownback said, although he has argued the income tax cuts will improve the economy.

Brownback is pushing the Legislature to approve a bill that makes permanent the 6.3 percent state sales tax rate. That rate was adopted in 2010 in the face of plummeting state revenue during the recession, but lawmakers made most of the increase temporary. Under current law, the rate will decrease to 5.7 percent on July 1.

Brownback said if the 6.3 percent rate isn't maintained, there may need to be further budget cuts. The higher sales tax rate would provide approximately $260 million more per year.

"Without some major cuts in a lot of places, I don't know how you else you do it," he said.

But Democrats said they don't plan on voting to repeal the scheduled decrease in the sales tax. They said that would be going back on their word to Kansans.

"We made a promise to the people of Kansas that it was a temporary tax and we are going to keep to that promise," Senate Democratic Leader Anthony Hensley of Topeka said.

Democrats said what they would like to see is a re-evaluation of the income tax cuts from last year, but they conceded that won't happen with Brownback in office and large conservative Republican majorities in the House and Senate

"The ultimate solution is in the hands of the voters," Hensley said.

Comments

autie 1 year, 7 months ago

Sam says: Without some major cuts in a lot of places, I don't know how you else you do it," he said.

autie writes: How you do it is to find the reasonable balance that doesn't ride on the backs of working Kansans totally and restore the three legged stool. Laffer curve is a fantasy and our Gobenor is a friggin idiot.

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voevoda 1 year, 6 months ago

It never occurred to Brownback that the way to get out of this mess is to undo the income tax cuts and exemptions that got us into it? Maybe he's not smart enough to be governor.

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George_Braziller 1 year, 6 months ago

My former boss attended law school at the same time as Sam and was in the same graduating class. She told me that even then he was considered a bit of a buffoon by the other students because they didn't think he was very bright.

In classes he'd raise questions and have discussions with the professor showing that he wasn't comprehending the basic legal concepts being covered.

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DScully 1 year, 6 months ago

No surprise there!! His thought and ideas are all smoke and mirrors!!

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DScully 1 year, 6 months ago

Cutting child care credit, homestead refunds for renters...all a bad idea. He obviously looked at those as giving handouts to money grubbers, never once considering that those refunds helped pay off debts, and gave those receiving them a chance to put money back into the Kansas economy. Intelligent, he isn't!!!

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Mike1949 1 year, 6 months ago

The vast majority of Kansas have been saying he isn't the brightest on the block, well maybe in the state of Kansas!

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1Dem 1 year, 7 months ago

Yep, the ultimate solution is in the hands of the voters.

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tomatogrower 1 year, 7 months ago

What would really work is get rid of his tax cuts, then go back to Graves and get rid of his tax cuts. Funny how things were better when we paid more taxes. Funny how the countries in northern Europe, who have many social programs and pay a lot of taxes, have faired better than places like Greece and Cyprus, who let the capitalist run amok with tax havens.

The Tea Party's desire.

The Tea Party's desire. by tomatogrower

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chootspa 1 year, 7 months ago

That "shot of adrenaline" worked out so well, didn't it, Gov?

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chootspa 1 year, 7 months ago

How many people do you know who never buy food or any other retail item?

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progressive_thinker 1 year, 6 months ago

Corporations depend on public infrastructure; an educated and healthy workforce; a legal system that enforces contracts and the obligations of other entities; and a cadre of other publicly financed services. Without these, the corporation would not survive.

With no corporate tax, it is predictable that corporate owners will further classify their own income as "corporate" to maximize tax avoidance.

Taxation of corporations is nothing more than requiring that they for pay their share of public financed services which they consume.

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Shelley Bock 1 year, 6 months ago

Progressive thinker is on the right track. Corporations wouldn't exist without the definition provided by government. Corporations provide protection to the individual, insulation from specific liability for corporate errors or misdeeds. The structure allows for the acquisition of capital which would not be attainable by an individual. And, as correctly described by progressive, corporations use, consume and abuse what is produced by government and society. Shouldn't corporations have an obligation for their existence, for their protection, for their consumption of societal products?

Why should they receive a "break" from their contribution in the form of forgiveness from taxes? Corporations in Kansas have now become the moochers.

Unfortunately, IKU operates against his own individual welfare. Unless his income is all saved and he consumes nothing, he'll be paying more every time he makes purchases. His income tax savings will be devoured by increases in sales and property taxes. Perhaps, IKU doesn't spend money to maintain his life; maybe he doesn't have any taxable property. Maybe, he's simply a corporation.

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JayhawkFan1985 1 year, 6 months ago

Paying taxes is a patriotic duty as is voting. You are a leach...want roads and schools and police for free...well, you get what you pay for as a person and as a society. Funny thing is that the rich are the most subsidized, not the poor.

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Richard Heckler 1 year, 7 months ago

ALEC Brownback and the republicans are reckless tax dollar spenders. Workers income taxes are being siphoned off by Brownback and being spent like a drunken sailor in a big way.

http://www.jimhightower.com/node/7723#.UVXZI7_3CX0

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golfguy 1 year, 7 months ago

So the police, fire, EMT's, public works employees, courts, teachers, national defense are all moochers in your opinion? Got it...glad you don't have any use for those things.

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jonas_opines 1 year, 7 months ago

The planet that thought Hurricane Sandy was an Act of God punishing liberal institutions.

Yep, he said that, check his profile. (Actually, don't, it's a scary place).

Or, he's an intentional troll. Either way is plausible

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chootspa 1 year, 6 months ago

The planet in which firefighters and police officers are mooches, apparently.

2

voevoda 1 year, 7 months ago

The worst "takers" are the people who are earning a substantial living but no longer have to pay any income tax at all, because they fall under the governor's "limited partnership" exemption. People who have an income above the poverty level ought to pay income tax, no matter what the source of income. Or don't you agree, lawrenceguy40?

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Currahee 1 year, 7 months ago

France's crazy president wants a 75% income tax on the rich. You want that? The rich will flock somewhere else and their money. While they pay a lower percentage of their income, it's still more than you will ever contribute in your lifetime.

0

tomatogrower 1 year, 6 months ago

Maybe they will take their money to Cyprus.

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JayhawkFan1985 1 year, 6 months ago

You might want to learn some facts before you spout off. You're nutty wrong...

1

voevoda 1 year, 6 months ago

I guess, Currahee, that you don't have a clue who I am and what my income is. (And that is how it should be!) Instead, you assume that all the people who want the well-to-do to pay a higher percentage of their income in taxes are welfare recipients. Well, you're wrong. Some of them are responsible, socially conscious high-income earners. They would rather pay higher tax rates and live in a society that upholds their values: educating the young, healing the sick, feeding and housing the poor. Where do the greedy rich end up? The French ones go to Russia, where tax rates are low and the rich can get away without paying much at all. If you don't mind trading your freedoms and personal safety for lower tax rates, go for it, Currahee.

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bad_dog 1 year, 6 months ago

Umm, not so much, mikekt. There is a legal theory called "piercing the corporate veil". You can read more about it here:

http://www.nolo.com/legal-encyclopedia/personal-liability-piercing-corporate-veil-33006.html

0

Richard Heckler 1 year, 7 months ago

Millions want their jobs back.....however China would be one helluva commute. Thanks USA legislators.

Stop and take a deep breath. Millions of jobs have been lost to Reagan/Bush and Bush/Cheney home loan scams that sent our economies down the tubes.

This doesn't create jobs. The repub party declared the day Obama was elected their primary function would be to make Obama a one term president.

Corrupt Wall Street activity and monster fraud has killed jobs for millions of Americans.

These are the dangerous ENTITLEMENTS and terrible business decisions.

--- Mergers = industry and jobs lost to other countries

--- Hostile Takeovers = industry and jobs lost to other countries

--- Leveraged Buyouts = industry and jobs lost to other countries

--- Free Trade Agreements = industry and jobs lost to other countries

All of above ultimately translate into millions upon millions upon millions of blue and white collar USA job losses in most cases to evil dictatorships.

There was a time when becoming employed by corporate America came with long term employment, fine wages and dependable retirement benefits. Those days are gone.

Why do legislators participate in killing the USA economy and millions upon millions of blue and white collar jobs?

Considering all of the above is it any wonder people are discovering ways to keep food on the table, keeping clothes on the body, paying rent and utilities and maybe a brew or two?

Legislators DO NOT go without paychecks! Going without enough money to meet financial responsibilities for long periods of time simply cannot be fun.

Until legislators walk in these shoes or live in these shoes legislators will never know. Legislators… think about what it might be like to have paychecks disappear,savings go up in smoke,no wall street investments or parents with money.

Millions want their jobs back.....however China would be one helluva commute. Thanks USA legislators.

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Bob Forer 1 year, 7 months ago

Your boy Romney voiced the same "taker" argument and got his butt whupped good. Give it a rest.

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1southernjayhawk 1 year, 7 months ago

No need to cut the sales tax. Everybody needs a little skin in the game.

1

tomatogrower 1 year, 6 months ago

We have to carry those rich people. The job creators? How many have they created with their big tax cuts? Got any numbers?

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brianjay1 1 year, 6 months ago

I am a corporation and will hire 2 to my staff of 9... Better than 10% job growth by my math. And yes that is my tax dollar working to employ your neighbor

0

jafs 1 year, 6 months ago

The sales tax increase was supposed to be temporary.

Allowing it to return to previous levels is what they should do, if they have any integrity. And, they're not eliminating it, for goodness' sakes, so people will still be paying sales taxes.

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drake 1 year, 7 months ago

"The problems we face today are because the people who work for a living are outnumbered by those who vote for a living" - Anonymous

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bad_dog 1 year, 6 months ago

"Anonymous" Why wouldn't someone want credit for that visionary insight?

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UneasyRider 1 year, 7 months ago

I think he has proven over and over again that he's both.

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Kate Rogge 1 year, 6 months ago

He intends to keep cutting public agencies and services until there is nothing left of Kansas state government. Keeping or reducing the sales tax is just a smokescreen.

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riverdrifter 1 year, 7 months ago

Trickle down clown Laffer needs to send the state of Kansas his $75,000 consulting fee back. Laffer is a charlatan and so is Governor Brownback.

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Richard Heckler 1 year, 7 months ago

Brownback endeavors have not all been new jobs to Kansas. Bribing jobs from KCMO metro into Johnson County or Leavenworth County did not create new jobs. The workers who had those jobs still have those jobs. Their route to work is the only new part of the job.

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bad_dog 1 year, 6 months ago

I believe B-back's "Roadmap" may have been designed by Apple's Iphone mapping software engineers. Whoa, Nellie, is that a cliff ahead?

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jafs 1 year, 6 months ago

Yes, I agree.

Somebody should do a good calculation, and come up with a net figure - you'd have to include all of that.

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brianjay1 1 year, 6 months ago

Economic reform/ overhaul doesn't happen over night. Dems STILL want to blame Bush for our economy but want to bury Brownback halfway through first term. You can't have it both ways boys and girls

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go4cats 1 year, 6 months ago

I am not sure what your point is brianjay1. One screwe things up royally on a national scale and and the other is well on his way to screwing things up royally here in Kansas. As a matter of historical fact "W" DID ruin our economy; took a budget surplus to a 4 trillion debt by imposing tax cuts, fighting two wars on credit and a medicare drug benefit with no financing. He led us to the worst economic crisis since the Great Depression. It took "W" eight years to get us there and you want it cleaned up in less time than that? Who wants to both ways? LOL!!! Brownback is halfway through his first term and is well ahead of "W" in mucking things up..

0

sciencegeek 1 year, 7 months ago

Autie, you're forgetting that they use Special Math in Brownbackistan. The numbers are whatever they SAY they are, not what the rest of us see. Not only that, but we have no business asking that their numbers be justified; arithmetic is a liberal plot. Why else would they undermine public education, other than to keep math and critical thinking far away from our vulnerable children?

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bad_dog 1 year, 6 months ago

We need to make them show their work in the margin.

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Larry Sturm 1 year, 7 months ago

I don't know about anybody else but I would not like to work for somebody and I had to pay income tax and they didn't.

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HutchSaltHawk 1 year, 7 months ago

I like the State income tax cut. I, like many other Kansans, work in Missouri which is taxed at a much lower rate. Never fun to write a $500 check every year to the State of Kansas (either via payroll deductions or a check in April) after paying the 1% City of Kansas City earnings tax.

1

bad_dog 1 year, 6 months ago

It was EARNED in MIZZERY. BTW, I believe professional athletes and entertainers are liable for taxes in any state where they play or appear. It isn't always collected, but they are supposed to be liable for such taxes.

0

Hadley_says 1 year, 6 months ago

So move to Missouri and enjoy a state that has low taxation. It is already a wreck.

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KS 1 year, 7 months ago

It proves that Brownback wants EVERYONE to pay their fair share rather than just a select few.

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KS 1 year, 6 months ago

Those same entities will still have to pay sales taxes on purchases. Just like everyone else.

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chootspa 1 year, 6 months ago

Actually, he wants the select few to pay nothing in spite of benefiting the most from the economy, infrastructure, and resources in the state. I think that's pretty much the opposite of "fair share"

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chootspa 1 year, 6 months ago

Um, the rich are pretty much the only ones able to get away with not paying income taxes in this state.

Even before the great Brownback swindle of 2012, the highest bracket in the state was something like 35k. That's not even median income.

6

KS 1 year, 6 months ago

chootspa - Be specific in your comment that "the rich pretty much the only ones able to get away with not paying income taxes in this state". How do they do that? What taxes are they NOT paying. Individuals, not corporations. I don't think you know what you are talking about.

0

chootspa 1 year, 6 months ago

I know exactly what I'm talking about. I think you may be confused. If you have sufficient income, chances are that the income comes from high enough on the food chain that you can use tax planning to structure that income in a way that will give you zero or near zero tax liability in this state.

Pass-through entities are designed precisely to tax the individual and not the corporation in order to avoid double taxation. In this state, they also avoid single taxation.

Let's take the easiest example to break that down. Sole proprietorships. That's a business, but that's also an individual's income, because the individual and the business are basically one in the same thing. All the money put down on that Schedule C of the 1040 is completely exempt from state taxes under the new law.

It also applies to S Corporations, partnerships, and LLCs taxed as partnerships, even if they are billion dollar companies.

3

Michael LoBurgio 1 year, 6 months ago

On march 21st 2013

The House Republicans approved a $400 million middle class tax increase.

The week before , Senate Republicans approved $500 million middle class tax hike.

The Governor's latest tax plan includes a $700 million middle class tax hike.

All of these proposals were introduced to pay for tax cuts Governor Brownback pushed through in 2012, which give the top earners in the state an average tax cut of about $20,000 while enabling business owners go income tax free.

None of these plans will generate enough revenue to allow for restored funding of Kansas schools. Please share - your neighbors need to know what is happening in Statehouse.

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Michael LoBurgio 1 year, 6 months ago

Reducing the EITC is a tax hike on 200k+ working Kansans

What is the EITC?

The Earned Income Tax Credit (EITC) gets and keeps people in Kansas working. It can only be claimed by people who earn income through work and pay taxes, and the credit is structured to encourage people to work more hours. At the federal level, it was designed to offset payroll, excise and income taxes paid by families with low- and moderate-incomes, leaving them with more to support their children and easing their transition from welfare to work. Because working families who receive the federal credit also pay a substantial share of their income in state and local taxes (sales, excise and property taxes that as a share of income hit lower-income families harder than wealthier ones), Kansas established its own EITC. Who is impacted by the EITC?

In 2010, 211,262 families in Kansas (or 17.4%) benefited from the federal government’s EITC. Those same families received over $80 million, or $381 per household, through Kansas’s version of the tax credit and spent those dollars on basic needs in local communities in your district.

Kansans who work should be able to support their families and meet their basic needs. But low pay makes it difficult for many families to get by. The Earned Income Tax Credit (EITC) helps families who work pay for basic necessities. It encourages and supports work by giving low-earning families a boost in income and offsetting some of the taxes they pay. And it is the nation’s single most effective tool for keeping children out of poverty.

http://realprosperityks.com/eitc

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James Nelson 1 year, 6 months ago

Sen. Hensley is quite right. The solution is in the hands of the voters. Our only hope right now is for the average Kansas citizen to wake up and realize that Sam Brownback's tax ideas have blown the Kansas state budget to smithereens with unbelievable fiscal insanity. And, of course, we see some of the most selfish and greedy politicians on the planet in lockstep with him. They must be replaced. Surely some should be recalled. Their call for class warfare must be challenged.

People must realize that there was nothing wrong with Brownback's desire to eliminate the state income tax. The state's revenues have increased as Kansas has gradually moved out of the recession. If he had simply waited until now to incrementally start lowering tax rates then everything in the budget could have been properly funded. But, to ask the poor and middle class to step in and take over the income tax payments of Kansas' richest citizens was so egregious I'm surprised there have not been serious uprisings already.

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JohnBrown 1 year, 6 months ago

Christ's Sermon on the Mount never got through to the right wing, ...I guess.

JohnBrown

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Larry Sturm 1 year, 6 months ago

The govenor has a pipe dream and it is all going down the pipe.

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Larry Sturm 1 year, 6 months ago

where are all the jobs that the tax breaks were going to create tax breaks for the rich has never created any jobs.

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chootspa 1 year, 6 months ago

I am an actual small business owner, and I will create zero new jobs because of this tax cut. The only thing that would create a new job is if I had so much work that I needed to hire someone to help me get it all done.

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