Brownback's tax plan favors rich over middle-income
Yael T. AbouhalkahA new chart from Kansas Revenue Secretary Nick Jordan shows that high-income Kansas residents will benefit far, far more than lower- to middle-income residents from Gov. Sam Brownback’s tax policies.
And not just in total dollars but in the percentage of benefits they could receive.
The chart showed to The Star at an editorial board meeting today was fairly simple: It showed how Kansans would pay less in personal income taxes because of the 2012 tax-law changes. Then it added in how much Kansans would pay in higher sales taxes if the rate is maintained at 6.3 percent and not dropped to 5.7 percent as called for in the 2010 state law.
The bottom line - called the “Full Brownback plan” - showed the tax change as a percentage of income and as an average tax change for different levels of income.
Look at the radical differences:
- The bottom 20 percent - with average incomes of $12,000 - would actually pay $22 a year in HIGHER taxes. That’s right: After all the Brownback hype about lower taxes for Kansans, the people least able to afford a tax increase would be paying more.
Why? Because these people would pay $51 a year in higher sales taxes, but save less than $30 a year in income taxes.
- The second 20 percent - with average incomes of $29,000 - would pay $19 a year less in taxes overall. That’s a savings of less than one-tenth of 1 percent, or hardly anything at all.
In other words, the Brownback tax plan would be a virtual wash - with no meaningful impact at all - on 40 percent of Kansans.
The third 20 percent - with average incomes of $48,000 - would save $104 a year in taxes. That’s a savings of about two-tenths of 1 percent.
The fourth 20 percent - with average incomes of $76,000 - would save $252 a year in taxes. That’s a savings of about three-tenths of 1 percent.
The next 15 percent - with average incomes of $123,000 - would save $669 a year in taxes. That’s a savings of about five-tenths of 1 percent.
The next 4 percent - with average incomes of $253,000 - would save $1,494 a year in taxes. That’s a savings of about six-tenths of 1 percent.
The top 1 percent - with average incomes of $1,169,000 - would save $6,528 a year in taxes. That’s a savings of about six-tenths of 1 percent.
Why the great advantage for high income earners? Because people with higher average incomes - especially $100,000 or more - would save so much more on income taxes than they would pay in higher sales taxes.
For instance, Kansans making average salaries of $253,000 a year would pay $316 in higher sales taxes but save $1,810 in income taxes.
Obviously, after looking at this chart, you would expecet the people making the most money to get the most in savings.
However, the Brownback plan skews this so that the people earning more money get a far higher proportionate tax savings.
Put another way, the 20 percent of Kansans with the highest incomes are getting about 6 times the savings - proportionately - than the Kansans with the lowest 40 percent of incomes in the state.
Reginald Thornton
3 months, 3 weeks agoLousy writer, and lousy mathematician. Not surprising, since a lack of critical thinking skills is going to impact each.
Anyway…
You err in calculating the savings as a percentage of total income. The correct comparison is savings vs. total TAXES.
You also err in even considering sales taxes. These are not state items. Why not throw in Federal taxes, too? Ummm, maybe because it is also irrelevant.
Keep at it. Don’t stop focusing away from the damage your own party is doing in DC. Or in other metropolitan areas they control mayorally. If you have such visceral hatred for what you imagine of Republicans, you would go insane if you ever focused on what Democrats are actually doing.
Mark Hastert
3 months, 3 weeks ago“bottom 20 percent - with average incomes of $12,000 - would actually pay $22 a year in HIGHER taxes..
The top 1 percent - with average incomes of $1,169,000 - would save $6,528 a year in taxes.”
Gosh, a couple of rich guys could go together and buy a poor person with their savings.
Mark Hastert
3 months, 3 weeks ago“You also err in even considering sales taxes. These are not state items. Why not throw in Federal taxes, too? Ummm, maybe because it is also irrelevant”
…so DO tell us.. how high would a sales tax have to be to finance local, state, and federal operations? How is that fair to a middle and and lower wage earner who would be taxed on a higher % of their income while Richie Rich gets off using his earnings to “invest”… in making himself Richier Richer? Now, if you want to tax stock & other security purchases at the same rate….but I’ll bet you don’t.
Matt Henry
3 months, 3 weeks agoThere is no mention in this piece as to how much the earners in each of these areas will actually be paying in taxes. I don’t know the numbers; is it possible that the reason the higher income brackets get a way bigger break is because they are already paying a much, much higher percentage? You know, like “a lot” compared to “basically nothing”? Sort of like how any tax break at a federal level would be bigger for the “rich” because half of all taxpayers already pay no taxes?
This piece reeks of misleading to me. It sure is missing a lot of data but is full of sanctimony. What a shocker.
Patty Hays
3 months, 3 weeks agoI am a little tired of Brownback and his shenanigans. He cuts everything for his rich cronies and makes the rest of us pay for it. He was bought by the Koch Brothers and his only objective is to destroy unions, education, and the average person….not to mention what he does to the truly poor and the disabled….and oh, yeah, let’s not forget about the way he cuts the art programs. Brownback is a disgrace, and I thank God for writers who expose him for what he is.
Mark Robertson
3 months, 3 weeks agoYael, You live in a static economic world. Raising taxes on the wealthy mostly hurts the “middle class” and poor, because the economy slows. Conversely, cutting taxes on the wealthy greatly benefits the “middle class” and poor because the economy expands and the “rich,” as a whole actually pay much more in taxes. Sam Brownback is such a great governor, one of many great Republican governors who are trying to save this nation from being completely destroyed by Obama. Suggested reading Yael: Econoclasts, The Rebels Who sparked the Supply Side Revolution and Restored American Prosperity, by Brian Domitrovic Thank you. Mark Robertson Independence
I will admit, Patty Hays is a tough act to follow. Such brilliance.
Robert Copher
3 months, 3 weeks agoIt is the statement that too many make. Wealth and power is what its all about. Reach those goals deemed most important by most people in todays society and you will be treated special too. Brownbacks entire agenda is to cater to the rich and powerfull because they create all the minumum wage jobs that keeps everybody happy. You might sense sarcasm in that last part. Maybe if we did punish the rich and powerful once in a while, we wouldn’t have so many con artists and scammers out there trying to achieve that status of special treatment where all their sins are forgiven and ruining people’s lives along the way. Ever think about that.