Brownback's tax plan favors rich over middle-income
The Kansas City Star
A 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.