Kansas legislature

Kansas Legislature

State tax revenues continue to fall

October 31, 2013

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— State tax collections continued to fall in October, which Gov. Sam Brownback's administration said shows that his income tax cuts are working.

But his Democratic opponent, Paul Davis, said the numbers prove just the opposite.

The conflicting statements were prompted by the October revenue report that showed state tax collections were $445 million, which was $18 million or 3.8 percent below projections, and 6.7 percent less than October 2012, according to the Kansas Department of Revenue.

For the fiscal year, which started July 1, tax revenue through October, was $1.81 billion, which is 1.5 percent below estimates, and 8.5 percent below the same period last year.

Individual income tax collections for October were 17.4 percent less than October 2012 and 18.7 percent less for the period of July 1 through the end of October as compared with the same time period in 2012.

Kansas Department of Revenue Secretary Nick Jordan gave an upbeat assessment of the report.

"Kansas families and businesses have been given real tax relief for the first time in decades. And lower income tax rates are allowing people across Kansas to spend more of their hard-earned dollars as they see fit in the private sector rather than sending them to Topeka," Jordan said.

But Davis, the House minority leader from Lawrence, said the revenue numbers tell a different story.

"Sam Brownback can try to mislead the people of Kansas, but the bottom line is that this growing revenue shortfall will lead to higher local property taxes and further cuts to our schools. Meanwhile, the jobs Governor Brownback promised are nowhere to be found," Davis said.

The state unemployment rate of 5.9 percent in August has risen from 5.5 percent in January.

Brownback and the Republican-majority Legislature have enacted large cuts in income tax rates, while reducing popular deductions, and eliminating tax credits aimed at helping the poor. They also set the state sales tax at 6.15 percent, instead of allowing it to fall to 5.7 percent as was required by a previous law, and eliminated state income taxes for the owners of partnerships, S corporations and limited liability companies.

Brownback has said the income tax cuts will spur the economy, but Democrats say the cuts favor the wealthy at the expense of middle- and low-income Kansans, and will mean budget cuts to schools and social services.

Comments

Bob Forer 1 year, 6 months ago

Of course the Brownback income tax cuts are working, not as touted, but as designed. When you cut taxes for the wealthy, tax revenue is going to decrease. . The argument that such cuts would stimulate the economy is a tired old lie that the wealthy continue to perpetrate on the people.

Where are the increased tax refevenue from a "stimuilated economy?" Revenue is down, not up. .

Where are the new jobs? Unemployment is up, not down.

"Trickle down" economics has never worked, is not working now, and will never work in the future.

How many more times are the hard workijng folks in this country going to be sucked in by this nonsense until they realize they have been scammed?

Brock Masters 1 year, 6 months ago

Brownback didn't just cut taxes for some he raised taxes for others. He kept the sales tax high when it was supposed to go down and he cut tax deductions. I will pay more thanks to Brownback's tax cuts.

Bob Forer 1 year, 6 months ago

Good of you to point that out, Brock. Thanks.

Richard Heckler 1 year, 6 months ago

Supply Side Economics sucks..... lots of tax dollars from our state cookie jars.

For example.

Worker's taxes siphoned off by their bosses - http://www.jimhightower.com/node/7723#.UkS9vBaTOX0 Thursday, April 26, 2012 | Posted by Jim Hightower

Where is the $47 million tax dollars that belong to Kansas taxpayers?

My congratulations to workers in 16 states – from Kansas to Maine to Georgia, New Jersey to Colorado! Many of you will be thrilled to know that the income taxes deducted from your paychecks each month are going to a very worthy cause: your corporate boss.

Good Jobs First, a non-profit, non-partisan research center, has analyzed state programs meant to create jobs, but instead have created some $700 million a year in corporate welfare. This scam starts with the normal practice of corporations withholding from each employee's monthly check the state income taxes their workers owe.

But rather than remitting this money to pay for state services, these 16 states simply allow the corporations to keep the tax payments for themselves! Adding to the funkiness of taxation-by-corporation, the bosses don't even have to tell workers that the company is siphoning off their state taxes for its own fun and profit.

Richard Heckler 1 year, 6 months ago

ALEC EXPOSED http://www.alecexposed.org/wiki/ALEC_Exposed

Through ALEC, corporations voted bills to rewrite the tax code that would increase their profits or the riches of their CEOs by:
 http://www.alecexposed.org/wiki/ALEC_Exposed

Seth Peterson 1 year, 6 months ago

Yeah, most six figure households are not the upper-echelon for what Brownback is going for. In an effort to crush the middle class he will have to remind those in the low six-digits that they are not far from elimination either.

Greg Cooper 1 year, 6 months ago

It's as simple as this: the majority of those voting in Kansas do not think for themselves, and have allowed the radical "Republican" Party to create a sinking middle economic class, growing lower economic class, and a bourgeois class who run the whole shebang.

Those of you who voted for this program know who you are, and you now know how it has affected you, personally. If this is what you want for your families and your state, so be it. You will get what you deserve: lies, dissemination of untruths, less opportunity to prosper. Your educational system will wither to mediocrity because the state can not keep up with technology and forward thought. Your children will be relegated to a second-class economy and lower class opportunity. You will continue to have a governor who lauds the "less is more" philosophy, as he did in his laughable letter to the New York Times (which even they could not print because of the lies) and does it because you don't think.

None of this has to happen, Kansas, none of it. We can have a "conservative" philosophy of econmomics without a knee-jerk reactionist philosophy that panders only to those who have wealth and aspire to have more at the expense of those who only want to live comfortably and retire safely. What we can not have is more "Laffable" theory that doesn't work, more raiding of the funds built by workers for workers, constant social engineering that has nothing to do with government and all to do with "moralistic engineering".

This is not a Democrat/Republican/Independent issue. It's not a "Christian"/atheist issue. This is an issue of right and wrong, of what is best for the citizens of the state. And what's happening now is not right, in any way, shape or form.

All we have to do is think. For ourselves. And for our children. And then, vote.

Rob Chestnut 1 year, 6 months ago

"Kansas families and businesses have been given real tax relief for the first time in decades. And lower income tax rates are allowing people across Kansas to spend more of their hard-earned dollars as they see fit in the private sector rather than sending them to Topeka," Jordan said.

Unfortunately, the math does not follow the quote. For lower and middle income earners, the increase in state sales tax from 5.7% to 6.15% on almost all expenditures translates into an increase in total taxes paid to the state.

The jury is still out relatively to whether or not this policy is successful in growing the economy for Kansas. Regardless, most of the benefit gained from this economic growth will not be realized by the segment of Kansans who feel the most impact from an increase in state sales tax.

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