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Home Publications Blogs Beat the Press What Does an $850 Million Loss in Annual Tax Revenue Mean to Kansas?

What Does an $850 Million Loss in Annual Tax Revenue Mean to Kansas?

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Thursday, 24 January 2013 05:24

I didn't have a clue and I suspect that 99 percent of other NYT readers also didn't have a clue. This raises the question of why did the NYT use this number, referring to the size of the income tax cuts being proposed by Kansas Governor Sam Brownback, without any context?

Kansas 2013 budget was $13.4 billion, making the proposed tax cut equal to 6.3 percent of last year's budget. Most NYT readers would have a reasonably good sense of the meaning of 6.3 percent.

Comments (6)Add Comment
Is the $850 million for the proposed tax cuts, or those already passed?
written by Mike B., January 24, 2013 12:28
The article says "This month, the largest tax cut in Kansas history took effect... The bill introduced this week would pare taxes further, with the goal of eventually eliminating the state’s individual income tax." It isn't clear to me if the $850 million is the cuts already passed, or the proposed ones, or the sum of these (your point applies in any case).

The article does at least give the average tax increases for low income people and tax decreases for high income people, in percentage and dollar terms.
...
written by f.fursty, January 24, 2013 2:37
Holy cow that article was terrifying. I should not have clicked on that link.
You want perspective?
written by John Puma, January 25, 2013 2:15
Here's the perspective: "The Republican Party now controls both legislative chambers and governorships in 24 states. Democrats have single-party control in 13. "

I'd suggest mainstream media's lack of arithmetic perspective is chronically and woefully lacking. It is part of its corporate strategy of news without perspective of any sort, therefore, without meaning.

You can be sure this strategy is a major cause of the state legislature situation quoted above and that situation in turn, in a classic downward spiral, guarantees that media continues serving it's thin gruel devoid of perspective and context.
Kansas has already implemented the "Tax Cuts are the Solution for everything"
written by jumpinjezebel, January 25, 2013 8:52
They are short this amount of revenue and are looking at the regressive idea of a 1 cent sales tax increase to make up the hole they dug for themselves. Now the RWNJ in MISSOURAH are thinking along the same lines and trying to out-propose each other with big cuts. No mention of how to fill up the hole we have now much less any more.
The cut taxes experiment could prove educational to the other states.
written by John Wright, January 25, 2013 10:04
There could be some value to the various tax cutting experiments, if the effects are reported accurately to other locales.

I'm waiting for some politician to take tax cutting to absurd levels, for example proposing a negative tax rate for high income earning people viewed as "job creators"

But for now, I suspect we will be seeing more tax cutting politicians playing the role, with taxes, of the dim carpenter who allegedly said, "I cut the board twice and it's still too short."
I live in Kansas
written by ljm, January 27, 2013 2:42
It's all good for the Koch brothers. Brownback wants to eliminate home mortgage decuctions and some other things to increase revenue. He wants to eliminate income tax and corporate tax. I expect property taxes to rise and of course utilities continue to gouge customers every way they can, as monopolies in Kansas. I pay more for various fees and taxes on my gas bill than I ever seem to pay for the actual gas. Electricity (coal fired mostly) just as bad, although Kansas has wind farms with the energy being exported out of state. Same with much of the nuclear power. We are racing to be a third world state. The legislators want to eliminate public unions.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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