Developing Story: How Koch Industries Is Responsible for Kansas Budget Woes

[WeAreKochs]

In 2014, the Wichita Eagle asked Kansas Governor Sam Brownback directly whether he thought Koch Industries had "undue influence" in state politics. It also asked Koch Industries directly, whether it was lobbying for the "Kansas LLC law," which financially benefits shareholders of Koch Industries-affiliated LLCs while costing the state an estimated $261 million a year in lost revenue. Koch Industries spokeswoman Melissa Cohlmia issued an e-mail statement:

"No. Koch did not lobby or advocate for a change in the Kansas LLC law," she said. "We didn’t lobby on the tax plan in 2012; we don’t know whether we will lobby to maintain it."

As we have previously reported, affiliates of Koch Industries, Charles Koch, and/or David Koch appear to be the nexus of support behind the "Kansas LLC Law." This law is now facing considerable opposition from both Kansas citizens and the small businesses that the law was purportedly benefiting.

Read more: http://www.dailykos.com/story/2016/04/22/1518820/-How-Koch-Industries-Is-Responsible-for-Kansas-Budget-Woes-WeAreKoch-KSleg

[deminks]

1. The Kochs do not lobby

Lobbying is for the little people. They park themselves in the Ks Senate president's office until the legislation they want is passed. That ain't lobbying. That is knee-capping. IMHO.

[WeAreKochs]

2. MUCH worse than that...

It's much worse than that! This "LLC loophole" that lets Koch LLCs pay NO STATE INCOME TAX costs the state more in tax revenue than the entire recent budget shortfall. And, there are some other shocking facts:

1. A survey of Wichita *small businesses* found *80% wanted to pay higher taxes* and 2 local chambers of commerce have condemned the loophole.

2. Five Kansas newspapers have now published editorials saying the loophole needs to be closed.

3. Every single person testifying in favor of the loophole (on two separate occasions) represents a group affiliated with Koch Industries, Charles Koch, or David Koch (taking money or deeper ties).

4. It looks like somebody who took money from Koch Industries in the past has "decided" to mount a primary challenge to the sponsor of the house bill that would force Charles Koch's LLCs to pay some income tax (so he is not running for re-election).

5. In a hearing on a different (but similar) bill in the Senate, the Kansas Chamber rep issued a thinly veiled threat to the bill's supporters that they got elected on a low tax platform with the support of the (Koch-backed) chamber.

6. Unreported in this article or comments is the fact that the ACLU is suing Kansas because 2/3 of new voter registrations during a multi-week period have been challenged. (Incumbents and monied interests are terrified of new, pissed off, voters sending them packing.)

It is Koch AstroTurf front groups and money versus the actual citizens of Kansas! And, if you read the Kansas newspaper reporting on the debate, they do not call out the fact that Koch Industries is the nexus of support for the loophole (that benefits Koch Industries).