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Wed Nov 28, 2012, 10:58 PM

This is really scary.

In Kansas, businesses will now pay no state taxes. Employees of a business will pay taxes but the owners won't. MO is responding by cutting business taxes in half.

Where do these states think they will get the revenue they need to pay for schools, public safety, roads, state services? Can individual tax returns cover these expenses? Or will this be the excuse they need to stop funding services?

I never thought I'd see anything this insane come out of a state legislature. We may have won the presidency but we're losing the battle at the state level here.

Kansas tax cuts signed into law

Kansas Gov. Sam Brownback signed a bill Tuesday that will reduce individual income tax rates for Kansans and eliminate state taxes on business income claimed on individual returns.

more . . . http://www.bizjournals.com/wichita/news/2012/05/22/kansas-tax-cuts-signed-into-law.html?page=all


Bill aims to cut taxes on Missouri businesses in half

JEFFERSON CITY – Missouri lawmakers have taken notice of massive tax cuts in Kansas, and they plan to respond with some cuts of their own.

Sen. Eric Schmitt, a Glendale Republican who chairs the Senate Jobs, Economic Development and Local Government Committee, said he plans to push legislation that would cut business taxes by 50 percent over the course of five years.

“This legislation will put Missouri on the map, and send a signal to businesses large and small that we are open for business and the Show-Me State is fertile ground for new jobs, expansion and investment,” Schmitt said.

The bill would cut the state’s corporate tax from its current rate of 6.25 percent to 3.12 percent over the course of five years, which according to legislative researchers could reduce state revenues by $153 million when it is fully phased in.

Read more here: http://midwestdemocracy.com/articles/bill-aims-cut-taxes-missouri-businesses-half/#storylink=cpy

16 replies, 1477 views

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Response to proud2BlibKansan (Original post)

Wed Nov 28, 2012, 11:05 PM

1. The way states compete to offer

businesses ever lower taxes has always bothered me. It's really noticeable when you live next to a state border.

One thing businesses do pay attention to is the quality of the local schools. Fortunately, the businesses that locate in the Kansas City area of Missouri can hire kids who attend the far better Kansas public schools.

I'm in New Mexico, and I'm frankly horrified at the quality of the public schools here. If I had school age kids I'd either move to Los Alamos, where the public schools there are exceptionally good thanks to the quality of the parents, or I'd have my kid in a private school until I could move to a place with better public schools.

One of the reasons we don't have good industries here is that the companies that might relocate here know the quality of the education in this state.

Schools everywhere need to be funded far better than they are. People like those legislators who reduce the business taxes either are deliberately ignoring the consequences, or cynically know they will simply tax the poor and middle class to make up the difference.

It really is unfortunate that people can't easily move from a place that does stupid things like that.

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Response to SheilaT (Reply #1)

Thu Nov 29, 2012, 08:48 AM

12. "Far better Kansas public schools" - for now, that is . . .

Give them a few years of steadily decreasing funding, and then we'll see just how well Kansas does in attracting new businesses.

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Response to hatrack (Reply #12)

Thu Nov 29, 2012, 11:26 AM

14. Hopefully Brownback will be a one term governor

and we can begin to repair some of this damage.

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Response to proud2BlibKansan (Original post)

Wed Nov 28, 2012, 11:05 PM

2. States waging finacial war against each other....

and the people will be the losers.

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Response to proud2BlibKansan (Original post)

Wed Nov 28, 2012, 11:07 PM

3. They really think businesses will flock there

Unfortunately, if businesses are going to flock anywhere for low taxes and low wages, it's still overseas.

I guess Republicans have to fail more in red states than they do in the rest of the country for anyone to get the point.

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Response to proud2BlibKansan (Original post)

Wed Nov 28, 2012, 11:10 PM

4. the states will beg for federal assistance and everyone else will be paying their bills

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Response to spanone (Reply #4)

Wed Nov 28, 2012, 11:44 PM

5. Ya think?

LOL

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Response to spanone (Reply #4)

Thu Nov 29, 2012, 12:51 AM

8. It's the Red State Way!

 

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Response to proud2BlibKansan (Original post)

Thu Nov 29, 2012, 12:44 AM

6. "I never thought I'd see anything this insane come out of a state legislature" and Kansas?

 

You do know there was a whole book written on just this topic, right? Of course, the insanity is not limited to just Kansas, but still...

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Response to Egalitarian Thug (Reply #6)

Thu Nov 29, 2012, 12:47 AM

7. Yes. Kansas.

We've always had GREAT state services. And wonderful schools. The people have been willing to pay for all of that.

There's a good reason people chose to live in Kansas. Well, there used to be a good reason.

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Response to proud2BlibKansan (Original post)

Thu Nov 29, 2012, 12:57 AM

9. Tyranny of the states

And they'll blame the failure of medicare and other saftey net programs in the state on the (Obama) Feds.
Isn't this the same state that teaches the children in public school that creationism is a science?

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Response to proud2BlibKansan (Original post)

Thu Nov 29, 2012, 01:02 AM

10. That's what Texas has been doing....We have such wonderful schools and services here.

Sarcasm

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Response to LeftInTX (Reply #10)

Thu Nov 29, 2012, 08:45 AM

11. You at least have tourism dollars in Texas

Kansas will never have that.

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Response to proud2BlibKansan (Reply #11)

Thu Nov 29, 2012, 08:55 AM

13. They may not have as much but it is incorrect to say you have NO tourism dollars.

I am hoping to make a trip to the Cosmosphere next year. I am sure the state has some other nice features than the nearest Amtrack depot to me.

http://www.cosmo.org/

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Response to proud2BlibKansan (Original post)

Thu Nov 29, 2012, 11:55 AM

15. Florida is running neck and neck for the finish line

along with you.

Today the headline is; Progress Energy decides it won't pay 1/2 of the taxes due on its property in Citrus County.

which pretty much kills the school system there, the police and fire departments, enviromental protection and every other facet of life.

It only amounts to $15,000,000.00 less than what is due but the problem is the taxes unpaid would be the
taxes used to bring suit against them in order to collect.

And I'm willing to bet this is a red county in this red state. (yeah, I know Florida went for President Obama
but the outlying regions are redneck republican.

Austerity, here we go.

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Response to proud2BlibKansan (Original post)

Thu Nov 29, 2012, 07:12 PM

16. " will this be the excuse they need to stop funding services? "

Yes.

It is called "austerity" in Europe, and has destroyed Greece, Spain, Ireland, and is working on Britain.

Altho I would argue that if my city council does not want to fund city services, then why bother paying city council members?

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