Kansas, Missouri pushing to eliminate state income tax?

[aknowledgeableperson]

Not sure what is good or bad about the Kansas income tax or the possible lowering of the Missouri state income tax but New York state has lowered its income taxes, Oklahoma is considering lowing its rates, and many other states either have or have proposals to lower their rates. So if it is bad for one state I would assume it would be bad for all of them.

[chaglang]

Not sure what is good or bad about the Kansas income tax or the possible lowering of the Missouri state income tax but New York state has lowered its income taxes, Oklahoma is considering lowing its rates, and many other states either have or have proposals to lower their rates. So if it is bad for one state I would assume it would be bad for all of them.

Read the article. It goes into specifics about why the Kansas law is misguided/useless/harmful, depending on the provision. Obviously tax law is more complicated than "low taxes=good" or "low taxes=bad".

[KCMax]

Not sure what is good or bad about the Kansas income tax or the possible lowering of the Missouri state income tax but New York state has lowered its income taxes, Oklahoma is considering lowing its rates, and many other states either have or have proposals to lower their rates. So if it is bad for one state I would assume it would be bad for all of them.

This isn't just "lowering taxes", it is a push to eliminate corporate income taxes in Kansas.

[bobbyhawks]

Not sure what is good or bad about the Kansas income tax or the possible lowering of the Missouri state income tax but New York state has lowered its income taxes, Oklahoma is considering lowing its rates, and many other states either have or have proposals to lower their rates. So if it is bad for one state I would assume it would be bad for all of them.

Would people be as enthusiastic about this plan if Kansas was proposing to straight up bribe individual CEOs and business owners (annually) to come to the state of Kansas? That would be seen as greedy or class warfare, yet somehow it is OK when the bribe is in the form of eliminated taxes.

[KCMax]

Senate Republicans approve sales tax increase, cuts in income tax rates, lower food sales tax

The Kansas Senate, with only Republican support, on Thursday approved a tax plan that will increase taxes by $879 million over the next 5 years.

The measure would make permanent the 6.3 percent state sales tax, but lower the sales tax on groceries to 4.95 percent.

Over the next 5 years, it would also phase out itemized deductions, such as mortgage interest and property tax, and decrease the standard deduction. But it would also lower state income tax rates from the top rate of 4.9 percent to 3.5 percent, and the bottom rate from 3 percent to 2.5 percent.

[KCMax]

http://cjonline.com/news/2013-06-02/spi ... s-tax-deal

Lawmakers cut income taxes for the top bracket from 4.9% to 3.9% and the lowest bracket from 3% to 2.3%. A number of deductions and exemptions were cut or eliminated including the mortgage interested deduction and the standard deduction for married couples.

The sales tax, which was set to drop to 5.7%, will instead drop to 6.15% from 6.3%. A proposal to lower the rate on food died, although the state did bring back the sales tax rebate on food for poor families.

Overall, tax revenues for the state will actually increase by $777 million.

[chingon]

Overall, tax revenues for the state will actually increase by $777 million.

Seems like there's a phrase for when that happens without a causal economic uptick. It's on the back of my tongue...two words...pretty sure the first one is "tax" or maybe "Max" the other word is like "mike" or "trike" or something.

I don't know. Republicans and Grover Norquist hate it, whatever it is.

[bobbyhawks]

http://cjonline.com/news/2013-06-02/spi ... s-tax-deal

Lawmakers cut income taxes for the top bracket from 4.9% to 3.9% and the lowest bracket from 3% to 2.3%. A number of deductions and exemptions were cut or eliminated including the mortgage interested deduction and the standard deduction for married couples.

The sales tax, which was set to drop to 5.7%, will instead drop to 6.15% from 6.3%. A proposal to lower the rate on food died, although the state did bring back the sales tax rebate on food for poor families.

Overall, tax revenues for the state will actually increase by $777 million.

Is the $777 million increase in revenue coming from the same mathematicians that brought Kansas the $2 billion error? It sounds like they are counting on things to go well independent of changes to tax rates. Also, it sounds like they are expecting increased take home pay to be spent in-state instead of on things like vacations, online goods, and goods in Missouri (for ~2% cheaper).

[longviewmo]

http://cjonline.com/news/2013-06-02/spi ... s-tax-deal

Lawmakers cut income taxes for the top bracket from 4.9% to 3.9% and the lowest bracket from 3% to 2.3%. A number of deductions and exemptions were cut or eliminated including the mortgage interested deduction and the standard deduction for married couples.

The sales tax, which was set to drop to 5.7%, will instead drop to 6.15% from 6.3%. A proposal to lower the rate on food died, although the state did bring back the sales tax rebate on food for poor families.

Overall, tax revenues for the state will actually increase by $777 million.

Is the $777 million increase in revenue coming from the same mathematicians that brought Kansas the $2 billion error? It sounds like they are counting on things to go well independent of changes to tax rates. Also, it sounds like they are expecting increased take home pay to be spent in-state instead of on things like vacations, online goods, and goods in Missouri (for ~2% cheaper).

Groceries are 5% cheaper in Missouri. Noticed it the last time I bought groceries and saw 9%... miss that 1 percent + city tax rate in Missouri.

[KCMax]

Nixon vetoes tax cut bill

Gov. Jay Nixon on Wednesday rejected an income tax cut bill, vetoing the Republican-supported legislation.

Speaking at Parkview High School in Springfield, Nixon called the legislation irresponsible and a “risky experiment.”

House Bill 253, sponsored by Rep. T.J. Berry, R-Excelsior Springs, would have lowered the top personal income tax rate one half of 1 percent, from 6 percent to 5.5 percent. The cut would have been implemented 1/20th of a percent a year.

In addition, the bill includes a trigger so that the next cut would only happen if the revenue taken in by the state the previous year exceeded the revenue taken in during one of the previous three years by at least $100 million. The bill also would have reduced the corporate income tax rate by 3 percent over three years.

[Zorobabel]

But Republicans have the necessary votes to override the veto, right?

[chaglang]

But Republicans have the necessary votes to override the veto, right?

They have 109 votes in the House, which is the bare minimum.

[knucklehead]

Missouri has the 7th lowest state taxes as a percentage of personal income according to the state auditor.

In 2012, the Federation of Tax administrators ranked Missouri as the 5th lowest in per capita state taxes in the country representing a lower tax burden than all of the surrounding states. A 2012 Ernst & Young report ranked Missouri's effective business tax rate as the 8th lowest in the Country.

All of the above is from yesterday's Warrensburg Daily Star Journal.

The republican party is Missouri has degenerated into a highly partisan idealogical freak show. Really embarrassing. Kansas seems to be the same.

[chingon]

But Republicans have the necessary votes to override the veto, right?

Nope.

There are enough Republicans, but not enough votes.

[FangKC]

It's ridiculous for Missouri to be lowering tax rates if it already has among the lowest tax rates in the country.

This policy will only result in cutting state services to the bare minimum. Less money for transportation funding, education, social services, etc.

With tax rates as they are, Missouri still has underfunding in many sectors like infrastructure development and maintenance, etc.

The one program that the Legislature, and even our Democratic governor, sought to cut back was historic tax credits and other redevelopment programs. These programs have helped rebuild our towns and cities. They do create jobs and economic activity. For every dollar spent in historic preservation and building redevelopment, I think it creates $3-$4 in economic activity. It's a no-brainer to continue these programs. As a side note, renovating existing buildings creates more housing and office space in existing neighborhoods and the central core. Reused spaces means that new buildings don't have to be constructed on raw land, and thus new highways and infrastructure doesn't have to be built and maintained. Economic activity is centralized in existing business districts. More housing near jobs mean fewer people on older highways.

As I observe some of the people in the Legislature, it is obvious to me that many of them are morons doing the bidding of Rex Sinquefield and R. Crosby Kemper III.

[pstokely]

But Republicans have the necessary votes to override the veto, right?

Nope.

There are enough Republicans, but not enough votes.

some Democrats might cross the isle

[KCMax]

Missouri lawmakers hate taxes, but OK with fees

While Missouri lawmakers pushed to reduce taxes this past session, they also passed bills that would impose millions of dollars in increased fees for everything from driver’s licenses to court transcripts, KMBC reports.
Bills passed, and now awaiting the signature of Gov. Jay Nixon, would allow for increases in fees for driver’s licenses, vehicle registration, getting medical records and court transcripts, and having propane meters inspected, the reports says.

[chingon]

some Democrats might cross the isle

Which ones?

[aknowledgeableperson]

The smart ones??????

[pstokely]

some Democrats might cross the isle

Which ones?

the DINOs