Gov. Kathleen Sebelius said the state made “a big first step” this year when it eliminated the property tax on business machinery and equipment. But it was only one step. She wants to continue targeted tax relief aimed at boosting the economy.
She recently asked the state’s Employment Security Advisory Council to reduce the unemployment tax rate, which could save Kansas businesses about $80 million a year. Her administration also is examining other taxes in which Kansas may be less competitive than other states. “We’re carefully looking at our corporate income tax structures and other structures where business leaders have said there are barriers in Kansas to making additional investments or keeping us in business,” she told The Eagle editorial board.
Posted by Phillip Brownlee
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58 Comments
Being the governor of a state has got to be a politician’s dream job. He/She can “ask” for anything that her potential supporters could possibly dream about … however ridiculous, absurd or impossible as it might be. The Legislature turns it down flat. Ole Gov then denounces the partisan legislature as “parocial”, “short-sighted”, “anti-development”…you get the idea. And then, “You certainly can’t blame me — I was on your side!!” Wink! Wink!
Years ago, Bill Lear used to fly every unsold operational LearJet on the ground, complete with select employees, execs and “special guests” to the Caribean Islands about December 30, for a 5 or 6 day “appreciation bonus vacation” on Lear Jet’s nickel — suites, expenses, room service, bars, and virtually, nothing was “off-limits”. Since business personal property tax reditions were calculated as to property “on the ground” on January 1, the “saved” tax one even just one of the planes paid for the junket with money left over, he paid no business personal property tax on any and all of those airplanes, thereby saving million of dollars, while building tremendous good will with certain Lear Jet emploees, executives and guests. Damn, the hours I spent trying to invent flying pump jacks and drilling rigs, to no avail, had to be well into mid six-figures.
I’m starting to really like Sebelius . :)
I wonder what the hating angry leftist on this blog think about her now?
We do need to be more like Tennessee and Nevada. What we really need to do is have all businesses tax exempt from paying income, property and any other special taxes.
Because taxes on business is just passed on to the consumers or it just makes you less attractive to do business in. Just the compliance cost alone is a waste of money for businesses.
People pay taxes, not businesses. It’s just an expense to them that makes them hire less employees or spend less on capital improvements.
But the angry short-mind leftist think that businesses are greedy, they eat their young, and spill toxic waste on your doorstep. They also believe that all tax dollars should come directly from corporations and that people should be exempt or that we should nationalize all businesses under the state.
Always nice to hear from good two shoes employee of the month Joe Williams.
Sebelius is no Democrat. I repent that I voted for her.
Taxes on buisness are passed on? Yeah? Well let’s pass ‘em on UP the ladder. That means capital gains taxes on the fat cat shareholders and board members and CEOs.
Finally a democrat I can love. She was listening to the hoards of businesses fleeing from Kansas or refusing to come here because of the tax burdens on businesses. Joe is right on when he says that people pay taxes not businesses. The new taxes are always passed on when EMPLOYERS are taxed. Businesses create jobs not individuals looking for a job. Right on!!! Kathleen.
This is a Democrat? Reducing taxes?
Have I stepped thru the looking glass? Expect to see Alice any moment now…
I know Raptor is is almost to good to be true. She must be caught in the spirit of the season.
Yes she has definitely quickened the march to feudalism.
heh heh
Who’s gonna pay the taxes when everyone has left this beknighted state?
Raptor germie and Joe can fight that one out with the prairie dogs and jackrabbits. That is inbetween fighting over what’s left of the water.
Not scared of that happening. We still have income tax, personal property tax, corporate income tax, real property tax, sales tax, gasoline tax, telephone taxes, cell phone taxes, cable tax, franchise tax, court costs, permit fees, unemployment tax (still there, only proposed to reduce it), business license (tax), estate and inheritance tax, cigarette tax, alcohol tax, bingo tax, mineral tax and I am sure there are a few others I haven’t included.
Doesn’t appear that the state is going out of business anytime soon.
Speaking of taxes, there is now, as of Dec 1st, sales tax on newspapers!
So, if you want to pay sales tax on a newspaper, buy it at the local Quicktrip, if you want the Eagle to pay it, get it out of the newpaper stand on the corner.
Monday I boght a Sunday paper so I could read Ben’s letter and they charged me sales tax. Never again!
Hank
Speaking of taxes, there is now, as of Dec 1st, sales tax on newspapers!
So, if you want to pay sales tax on a newspaper, buy it at the local Quicktrip, if you want the Eagle to pay it, get it out of the newpaper stand on the corner.
Monday I boght a Sunday paper so I could read Ben’s letter and they charged me sales tax. Never again!
Hank
Here is the thing, she’s targetting the taxes she wants to reduce that will help small businesses, not just lumping them into one big cut for the wealthy. I do not agree with lowering the unemployment tax though.
umm, PeeMom…
You clearly don’t understand taxes. Small businesses incomes are taxed on the owner’s individual tax return. The only way to cut income tax on small business is to cut individual rates.
golf, I did daycare for awhile, and that is considered a small business. I’m going to guess on the tax form there is a line that says “did you purchase any machinery as described in xyz” now.
I could deduct portions of my home that were used for my business. But it didn’t apply to my whole house.
So it matters when you target taxes.
The Governor is a Democrat who understands that an environment that is attractive to business is good for the citizens because good jobs will stay here and relocate here. The Governor understands that creating good jobs will raise many boats in our economy. She understands that – with some business tax reduction or repeal, there will be a concomitant increase in economic activity, and increasing state revenues resulting . . . so we can do this without raising taxes to replace the lose revenue. The Governor is in favor of TARGETED business tax relief, but she is not going to bankrupt the state or raise income taxes on citizens. Businesses still need to pay taxes, and businesses still need to be responsible citizens who obey the law. But we Democrats have learned that a strong and vibrant business environment that creates jobs is important to all of us. Without such an environment, Wichita could become the stagnant place that so many of our rural and small towns have unfortunately become over the last several decades.
Pee,As usual, you’re not making sense. C’est la vie.
A “gleaning example”
bawhahaha
So this is how it works, everytime I prove you’re an idiot, you resort to one misuse of a word I made long ago?
I don’t have to make my case, you make it for me.
Nutz, do you have anything else to do other than stalk Politcal Mom?
This song is getting really old.
Oh man, now I’m laughing – you’re good for one thing, Pee – you put laughter in my day…most every day. Thankfully, you have zero impact on my real life, so I don’t have to have much concern about your whacked out theories.
What’s really funny here, is that NOW you acknowledge that your use of that phrase was a faux pas. However, back then, you went ON and ON and ON about how you INTENDED to use that phrase for just that purpose and about how 100% right you were. (I can query it on the other thread and pull up direct quotes, if you’d like).
Just shows having money can buy your way anywhere. Because if GOOFTESTICLES can be a successful business owner, gee, I should be a freaking millionaire.
Clark,Just as I proved you wrong repeatedly about your silly ROI argument, you’re wrong here, too.
Pmom one thing most people don’t realize is that as an S-Corporation a business owner pays tax on all gross profits he makes in any given year. Now the surprise for most people is that you pay tax on that profit even if the net profit you take out of the company is zero. Most small businesses put the profit back into the company by ‘investing’ in updated office equitment, new trucks for your employees to drive, etc… I sure you get the picture. That is why these tax breaks are necessary for small businesses to survive. Without them the unemployment picture would be much worse and if the unemployment taxes come down it might allow the company to retain an employee instead of laying him off so they can pay their taxes.
A little research will show another Governor also put in place a unemployment insurance tax moratorium. Once the fund reaches a certain balance, actuary types argue the fund can handle being drawn down. It is simply prudent management and that is good enough for me.
“Clark,Just as I proved you wrong repeatedly about your silly ROI argument, you’re wrong here, too.”
Another of your fastasies, Nutz, just like your P Mom fantasy.
If you weren’t so hung up on P Mom, maybe I could take you seriously.
ksgrm,The thing is…No business owner is going to buy a $20,000 truck just because the state has eliminated the $500 property tax.
The REAL benefit comes thanks to the federal income tax reduction implemented by George Bush.
KSGolfnut < small
KSGolfnut, you’re quite the bully when it comes to women. Judging from the treatrment you give Pmom, I suspect you probably beat women. I never had much use for guys who beat up on women…lack of character and all.You should probably work on that.
Are we supposed to treat women differently on here when they’re wrong? I see the most hateful and aggressive comments from women.
Sure looks to me like Political_mom is the one doing the stalking. Check out the other threads. She has some kind of envy for Golfer.
IC, everyone here looks at the other threads. You should have seen his behavior when I put him on ignore in the kansas.com forums, he continued to stalk me for months.
Then I leave there, and he follows me here. I admit, sometimes I take a jab- but overwhelmingly he is the one harrassing me.
Don’t waste your breath, pmom. KsGolfnut, JohnB and Internal Combustion are all the same person.
“I C”=KSGolfnut = source of trolls.
You know they really need to add those smiley icons on here so we can do things like roll eyes in our posts.
PeeMom = source of whiningPeeMom = always the victim
It does seem that testicles is the source of the trolls. I didn’t believe it till now. All these newbies suddenly hmm.
Yep, case closed.
Interesting fellow, this Golf Nut. He claims to be a high-roller business owner, happily married father, spends most of his time stalking P Mom, and accuses anyone that disagrees with him of “playing the victim.”
Then he starts trolling.
Interesting, I would say.
It’s a bit funny, but the trolling usually starts when Golf Nuts starts getting his.
Nah…As I’ve said countless times, I have no desire to troll anyone. I’m very content to say what I’d like to say on my very own name.
However, you simpletons will think what you will, and I couldn’t care less. So…
Feel free
KSGolfnut=nutless wonder
Targeted tax relief? Are not the rest of the masses deserving of a tax break?
Hank, and others, under the Kansas Retail Sales Tax Act, newspaper sales were always subject to the sales tax; however, most retailers just “ate it” by charging the 50 cents, and remitting the tax on the paper sales. IIRC, the change in the way it works is a KDOR regulation that allows the sales tax to be separately stated and collected on the 50 cent “cover price”; y’all know, just like when you buy a magazine at the retailer. Samey, samey.
ksgrm, and once the tax is paid on that income, it (previously taxed but undistributed income) can be withdrawn in future years at no additional income tax costs; compare to a C corporation, where the same income is taxed on a corporate level, but is only withdrawable in future years as a taxable dividend.
I know there are several regulars here that are aware of this, offered for the others.
“She was listening to the hoards of businesses fleeing from Kansas or refusing to come here because of the tax burdens on businesses.”
First off ksgerm, you are SO full of shit on that statement. Prove it. Show me ONE mythical business that left because taxes are too high. Or didnt locate here because of taxes. Nice meme and urban myth, but you cant find ONE real example because it doesnt happen.
Businesses dont come here because of resource issues and workforce issues. Not taxes. Prove it, or stop perpetuating the myth.
Second, governor leadership has NO PROBLEM cutting taxes that are paid to cities and counties. She is cutting taxes that fund local entities, not the state.
Show me one STATE revenue tax she has lowered. Cant do it. It’s either a pool, like unemployment, or taxes paid to another entity.
Heheheheh. I would have no trouble cutting my neighbor’s pay too, unlike cutting my own pay.
Jesus wept. Wake up and smell the coffee. How much fortitude does it take to cut revenue that goes to someone else?
So… after governor leadership cuts revenue for your county and city, you wont mind paying higher taxes on the local level?
Woof. Six impossible things before breakfast. Just taking out of one pocket instead of the other.
Republican logic. Sebelius logic. Same thing.
Ksfarmgirl if indeed you know your way to a farm. Many businesses with a fleet of vehicles to support have made Kansas off limits for expansion because of the gas taxes currently in place. If you don’t believe that cross the Missouri line and see how much cheaper the cost is. You take the ten to fifteen cents lower price and apply that on a annual basis for fuel cost and it adds up to a lot of money.
As for that stupid tax on business assets it was and is a double taxation issue. You buy equipment and pay taxes on it if it isn’t for resale and then the state came along at the end of the year and made you list everything your business owns so they can tax you again.
Vaughn you are right as far as you went but what makes you think that business owners are able to take that money out later as untaxed dividends. It is just carried as owners equity and if you sell it eventually that comes off your cost basis but you have still paid state and federal income taxes for income taxes you never received.
I can’t believe the hatred on this thread for businesses big and small. Business create jobs. Period. Someone needs to educate themselves before spouting off and making themselves look foolish.
ksgrm make valid points. Sub-chapter S corps (also K Partnerships) pass their earnings to shareholders whether distributed or not. As such, they get taxed at the 1040 level.
I think VT’s point ksgrm is that with an S or K when money IS taken out it is “tax-free” in that the tax was already paid. (Unless, of course, you take out more than basis in which case there is a taxable gain)
Ben that is exactly what I said. Often sub-s corps are owned by 1 or 2 owners and these owners get to share the ‘profits’. When no dividend is taken because the cash is needed for business equipment either to replace old or buy something new – the cash is never distributed. It is spent on the equipment purchase. On the books you see a dividend and pay taxes on it but no money every changed hands. It is then carried on the books as owners equity but unless you are able somewhere down the road to sell the business for enough to draw on that owners equity – you have paid money on money you never received. Many small businesses have to operate in this fashion because of low cash flow. Payroll is the number one priority for small businesses with benefits coming in second. I just don’t think many people realize what small business owners do in order to provide jobs. And yes I do speak from experience.
Actually, if the earnings are spent on equipment there may not be any income tax due, depending on how it is handled. Sec 179 can take a large chunk out (up to $108,000 2006); typical ‘regular’ MACRS depreciation will also take a good-sized chunk.
Perhaps the saving grace is that we get to take the losses when they occur as well. (assuming we are active participants)
By the way ksgrm – I was agreeing with you; just re-phrasing a bit.
Ben: losses are deductible up to basis in investment, under K or S; if anyone wants more information, contact me for an appointment. :)
ksgrm, while the $$ may never be paid out, I was trying to point out the difference between a C and an S corp; that’s all.
Clarification accepted VT. I should have been more clear.
Oh, what the heck; another difference between K and S deals with the self-employment tax; depending upon the nature of the business being conducted by the partnership/LLC, under subchapter K, the profits will also be subjected to “self employement” tax; the profits under subchapter S are taxed at the income tax rates, but are not subject to the self employment tax. Does make a difference.
Gotta watch out for that one though VT – the IRS has gone after S shareholders whose income is the S Corp for not declaring as salary (and paying the SS tax)
From West Fed Taxation (2004) “On Jan 5, 2002, the TOGTA issues a report to the IRS recommending that audits of S corporations more closely evaluate the entities’ salary structures. According to the report, there is considerable evidence that owner-operators are saving on payroll taxes by not paying themselves reasonable salaries. Instead, they are withdrawing business profits in the form of dividends, which are not subject to payroll taxes.”
Note: the dividends will still have been “income taxed”; just not payroll/SE.
Ben, thanks for that warning to those who may be affected thereby. Kind of a reverse from the normal “reasonable compensation” argument IRS makes.
yea, the IRS can be tricky.
Thanks for the info guys. I just wanted to point out to the uninformed that business owners, if they are not Boeings or Raytheons, work hard every day to stay afloat and continue to pay their employees. Obviously they do this because they like working for themselves and not ‘the man’ but they also do work their lowliest employees gripe about.
And also just for the record the tax structure in Kansas isn’t business friendly unless you are large enough to get tax credits for expansion, etc… Most small businesses just plug along doing what they know best.
Still waiting for one specific example of a reason a specific business left kansas or didnt come to kansas because of taxes.
I own three business ksgrm. Dont lecture me about the cult of entrepreneurship.
I still say businesses make location decisions based on overall cost of doing business. Workforce issues cost them far more than our weenie little taxes.
But nice meme from the Kansas Chamber of Commerce. We encourage you to try again.