It will be one of the biggest tax shifts in the history of the state of Kansas. The Kansas Legislature approved, by a very close margin, a one-half cent increase in the sales tax to cover the significant loss because of decreased income tax from businesses. That will hurt the working folks in Wyandotte County the most.
It all started in 2012 when Gov. Sam Brownback proposed -and the ultra-conservative legislature approved–a dramatic shift that allowed businesses to escape paying income taxes. That was supposed to bring in hordes of new businesses to the state. It didn’t. What it did do is cause existing businesses — more than 300,000 that IRS classified as “S corporations” — to make a raid on the state treasury.
Gov. Brownback was under the illusion that Kansas could compete with those states that do not have an income tax — such as Texas, Wyoming or Florida. What those states have — that Kansas doesn’t have — is either substantial tourism or large mineral and oil deposits, or both.
Kansas has traditionally had a balance among three basic taxing sources —property, income and sales. Property taxes are the most stable and sales taxes are the most fluid; income taxes are some place in the middle. The analogy is made that Kansas taxes are like a three-legged stool. Pull any one of those legs off, and you have serious problems.
One of the basic disagreements in the recent legislative session was whether the income tax would be restored or if the sales tax would be hiked. The governor and his very conservative allies won out — at least for now.
The ultra-conservatives — the Tea Party crowd — have control of the legislature. However, not all of the conservative legislators are happy with the governor; the $15.3 billion budget that he approved didn’t cut enough spending, certain ultra-conservatives alleged.
Last spring I was at a luncheon of the William Allen White Foundation in Lawrence. I was sitting at the table with two very prominent Kansas editors — Dave Seaton and Susan Lynn.
Steve Morris, a former moderate Republican senator, was also at the table. Larry Powell, an ultra conservative, defeated Morris in the 2012 primary election. Morris said about 15 ultra-conservatives would have to lose to regain control of the Kansas Senate.
Seaton, whose family has deep roots in the Kansas newspaper and business and politics, told of grass roots efforts in his hometown of Winfield to get more responsible legislators elected, whether they are moderate Republicans or Democrats. I would hope that there are similar efforts in other parts of the state.
Murrel Bland is the former editor of The Wyandotte West and The Piper Press.
The tragedy last week in South Carolina, a shooting of nine people attending a historic black church, brought out what I believe is one of the most forgiving acts I have ever seen.
Families of the victims almost immediately said they forgave the shooter. They proved that hate would not triumph. Their statements were important in setting the tone for the rest of the nation in responding to a senseless tragedy. Kansas City, Kan., had its own memorial prayer service last week for the Charleston victims, including an appearance by the U.S. attorney at the Rev. C.L. Bachus’s church.
While gun rights advocates continued to support their right to own and carry guns, the incident sparked a new wave of backlash against the laws that allow individuals to get hold of the more lethal kinds of weapons such as machine guns and automatic guns. I believe the president is correct in saying that guns are a major part of the problem. If society had acted 30 years ago, we would not be seeing these sorts of incidents now.
The man arrested last week displayed a Confederate flag in photos and was reportedly a white supremacist, which started another discussion on whether to remove the Confederate flag from its prominent place at South Carolina’s government buildings and in other states that have displayed it. It’s hard for someone from a northern state to understand why anyone would still be fighting the Civil War, 150 years after it has been over. Quite correctly, the Confederate flag is often seen as a symbol for supporters of white supremacy and slavery.
There is a movement to remove the Confederate flag from flying in front of South Carolina state buildings, and Walmart has announced it will pull Confederate flag materials from its shelves. I would point out if you think the Confederate flag has never flown in Wyandotte County, you are sadly mistaken.
In Kansas, founded as a free state, the Confederate flag was spotted as recently as 2011 flying over a fan’s tailgate area at a Kansas Speedway event in Kansas City, Kan., and it was unconnected with the management of the event. In that case, it might have meant nothing more than supporting a particular driver from South Carolina. And in the past, there was the appearance by the General Lee car, with a Confederate flag on it, from the “Dukes of Hazzard” television show, at the Kansas Speedway.
In 2011, a fan flew a Confederate flag in the parking area of the Kansas Speedway in Kansas City, Kan. (File photo)
NASCAR released a statement Tuesday that it supports the position of the governor of South Carolina, who favors removal of the Confederate flag from state government. “As our industry works collectively to ensure that all fans are welcome at our races, NASCAR will continue our long-standing policy to disallow the use of the Confederate flag symbol in any official NASCAR capacity. While NASCAR recognizes that freedom of expression is an inherent right of all citizens, we will continue to strive for an inclusive environment at our events,” according to the NASCAR statement.
While inappropriate and perhaps even a bit rebellious for a state government to display the Confederate flag, it is part of an individual’s right of free expression to do so, however insulted the rest of us may feel. There’s really no need to fly a flag that has so much bad history attached to it. A good response for those who feel strongly about it, I think, is to fly their own different flag. An even better response for everyone is to look inward and do away with any hate toward any group or individual.
When will fire stations be upgraded?
The Kansas City, Kan., Fire Department has found a friend in Commissioner Mike Kane.
At recent Unified Government meetings discussing building and maintenance projects, Commissioner Kane spoke up in favor of funding for fire stations that are in disrepair. Why weren’t they listed on the capital projects being considered in the budget being prepared now, he asked. He mentioned the water problems at the station at 81st and Leavenworth Road – repairs were being made there.
He also mentioned the condition of the fire station in Piper, which according to Kane is not much more than a pole barn.
Will there be any results from his advocacy this year?
It’s hard to tell, but there may not be, because the mayor and UG officials have said they are waiting on the results of a study of the Fire Department before making any changes, and that will be after the budget is completed this year.
Although budget time officially kicks off in mid-July, the commission has been hearing reports for several months about various departments and their needs. The UG administrator has been getting some guidance from the commissioners on the direction the next budget will take.
County Administrator Doug Bach is scheduled to give his 2016 budget recommendations at 5 p.m. Monday, July 13, at City Hall, followed by several budget workshops. A final budget public hearing is scheduled at 5 p.m. July 27.
Rep. Pam Curtis
The 2015 legislative session finally adjourned on Friday June 12.
It was the longest session in Kansas history lasting 113 days – 23 days longer than the typical 90 day session. Progress this session was continuously stalled by Republican infighting and gridlock, as the legislature debated how to finance the 2016 budget. I will have to return to Topeka next Friday, June 26, for the ceremonial last day of the legislative session, known as Sine Die.
It remains an incredible honor to represent our community in the Kansas House of Representatives. I am glad to be home and I look forward to seeing and speaking with all of you again. Please do not hesitate to contact me, even though the legislative session is over. I am always happy to address your concerns and to be helpful in any way possible. You can reach me by calling the legislative hotline at 1-800-432-3924 and leaving a message or by emailing me at [email protected].
Tax plan
In order to fill a $400 million deficit, the legislature approved the single largest tax increase in Kansas history this session, totaling more than $1.5 billion over the next three years. I voted no because the tax increases are not responsible, equitable, or sustainable.
In 2012 the governor pushed through his failed economic experiment, which resulted in more than 330,000 Kansas businesses paying nothing in state income taxes; subsequently the state has lost more than $1 billion in revenue over the past year. Kansas cannot deficit spend, so the legislature had to pass a tax plan this session to balance the state’s budget.
Kansas already has the 9th most unfair tax structure in the country because poor, middle class, and working families pay a disproportionately high amount of their income in taxes, and this plan only makes it worse by:
• Increasing sales tax from 6.15 percent to 6.50 percent
• Eliminating and reducing itemized income tax deductions
• Raising sales tax on cigarettes by $0.50, from $0.79 to $1.29
• Granting a tax amnesty period allowing individuals to pay back taxes without penalty
• Taxing certain business wages
Changes to sales tax
The plan generates more than a third of the total revenue by raising sales tax from 6.15 percent to 6.50 percent, effective July 1, 2015. As a result Kansans will now pay more for everyday necessities, and middle class and working Kansans will now unfairly pay a larger percentage of their income in sales taxes.
Eliminating-reducing itemized reductions
The tax plan will eliminate nearly all of the itemized deductions taxpayers may use when filing state income taxes, including deductions for medical expenses. The property tax and mortgage interest rate deduction will be reduced by 50 percent. The itemized deduction on charitable contributions is the only deduction unaffected.
Increasing sales tax on cigarettes
The bill increases the cost of cigarettes by $0.50, from $0.79 to $1.29 per pack. Raising the rate pushes Kansas’ tax on cigarettes to the highest in the region and risks losing sales across state lines. Similar to sales tax, taxes on cigarettes unfairly affect middle class and working Kansans. The bill also includes a tax on electronic cigarettes of 20 cents per milliliter of consumable material starting in July 2016.
Tax amnesty
The tax plan includes a tax amnesty period, which will allow individuals who owe back taxes to pay their taxes, in full, without penalty. The 45-day amnesty period will begin on Sept. 1, 2015, and end on Oct. 15, 2015, and is estimated to generate $30 million. Kansas has had an amnesty period as recently as 2010, so it is unlikely the program will generate the amount of revenue expected.
Taxing certain business wages
The tax plan would tax what is known as “guaranteed payments,” modifying a 2012 policy that ended income taxes on the profits of 281,000 business owners and 53,000 farmers. Income taxes will have to be paid on any payments they guarantee themselves from their businesses, regardless of their profits, at the current lowest rate of 2.7 percent. Businesses may simply get around this by restructuring the way their wages are paid out to avoid taxes.
Delaying income tax reductions
Part of the governor’s “march to zero” income tax included reducing personal tax income tax rates. The bill would continue to reduce income tax rates, but would make smaller reductions in 2017 and 2018 than originally planned. Rather than solving the root cause of the problem, Gov. Brownback’s failed economic experiment, this bill continues to irresponsibly cut taxes.
The new tax plan balances the budget on the backs of middle class and working families. It is unfair to raise taxes on millions of Kansans to subsidize a failed economic experiment that protects tax breaks for big businesses and the wealthiest of Kansans.
Budget
Earlier in the session, the legislature approved a budget that does not meet the needs of Kansas. I voted no. The budget for 2016 makes it clear Kansas does not prioritize sound infrastructure, education, or public safety.
The 2016 budget:
• Takes more than $350 million from the State Highway Fund, which is proven to create jobs and improve the quality of our roads
• Does not invest additional money into K-12 or higher education, which are already underfunded.
• Does not increase salaries for state employees, who haven’t received a pay increase in years.
• Does not adequately fund the judicial branch, which is charged with keeping our communities safe.
• Does not provide additional funding to the Kansas Highway Patrol, which is more than 100 officers short.
The budget ignores some of the state’s most important needs, and relies on funding from one time revenue sources. This sort of budgeting process is not sustainable. Kansans want and deserve better.
