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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThis 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 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
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 states 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
SheilaT
(23,156 posts)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.
hatrack
(59,587 posts)Give them a few years of steadily decreasing funding, and then we'll see just how well Kansas does in attracting new businesses.
proud2BlibKansan
(96,793 posts)and we can begin to repair some of this damage.
Sekhmets Daughter
(7,515 posts)and the people will be the losers.
Warpy
(111,277 posts)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.
spanone
(135,844 posts)proud2BlibKansan
(96,793 posts)LOL
x2 vancouverite
(89 posts)Egalitarian Thug
(12,448 posts)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...
proud2BlibKansan
(96,793 posts)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.
sigmasix
(794 posts)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?
LeftInTX
(25,383 posts)Sarcasm
proud2BlibKansan
(96,793 posts)Kansas will never have that.
CBGLuthier
(12,723 posts)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/
onethatcares
(16,172 posts)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.
dixiegrrrrl
(60,010 posts)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?