Kansas cuts taxes for CPAs - and cuts aid for kids
Yael T. AbouhalkahThe economic development border war continued this week, as Kansas handed out tax incentives to lure a Kansas City certified public accounting firm to Leawood.
That’s right: More tax breaks for CPAs - in a state that last year killed a food sales tax refund that benefited single parents and eliminated the child and dependent care credit claimed by people responsible for disabled dependents and spouses.
The offices of Meara Welch Browne are moving from the Country Club Plaza to near State Line Road, just a few miles essentially.
Why? Because Kansas - led by Gov. Sam Brownback - has eliminated the 6 percent personal income tax on profits earned at so-called pass-through businesses.
Let John Meara, a principal at the firm, explain it.
“I think there could be a mass migration to Kansas if Missouri doesn’t do anything about it,” Meara said. “Twenty-two people have been provided huge incentives to move and once we get there, all the profits are not taxed by Kansas.”
The well-off CPAs will get the spoils, even as the state of Kansas has to pay for those spoils in some way.
That was what necessitated part of last year’s cutbacks on aid for poor people.
And don’t forget: Because Meara’s firm won’t be paying taxes, others will, but they won’t be paying enough to keep all of the state’s current services.
Projections show that Kansas will have to cut hundreds of millions of dollars in the state budget in future years. So schools, social services and other services in Kansas could be drained of precious revenue.
Too bad for them.
But at least the CPAs will get to keep their tax breaks.
George Hunsucker
Northland
3 months, 1 week agoI thought you libs said taxes didn’t matter YT.. Mo needs to get ready for a groundswell of businesses doing the economically sane thing. Just ask IL if tax rates matter—they have lost businesses to IN and WI due to lower taxes and right to work laws..
The party is OVER for you libs in KC–hurrah!
Mark Hastert
3 months, 1 week agoSounds like another giveaway to the wealthy. Too bad they only get their one vote. I’m sure a bill will be introduced to remedy that.
Johnathon Busby
3 months, 1 week agoThe GOP loves corporate well-fare. You have to make sure the CEOs have enough. Too bad they don’t have the same consideration for the people who actually need well-fare.
Meanwhile, the GOP in Kansas and Missouri poach one another’s jobs in the most mindless manner, ensuring that no one gets the revenues they previously received and that everyone experiences a decline in the services they can provide. It’s a vicious cycle.
George Hunsucker
Northland
3 months, 1 week agoI didn’t know KC was run by the GOP Johnathon…..
Reginald Thornton
3 months, 1 week agoShhh, George- don’t tell Busby the GOP is not controlling Missouri. His entire carefully fabricated house of cards will come crashing down.
As for this column, I would think that Meara and his firm should seek counsel on bringing a libel case against the Star. Yael clearly connects a small tax break to the CPA’s (which is probably entirely offset by taxes collected from their new landlord) to Kansas cutting “hundreds of millions of dollars in the state budget in future years”.
Demonstrably false, Yael and his editors must have known this or were reckless in not fact checking it before printing. This allegation will very likely result in lost clients and future business, tainting the firm when bidding on any public contracts (a competitive bidder would be remiss not to mention this story).
If only this were the most irresponsible that Yael has been in his columns.
Johnathon Busby
3 months, 1 week agoI said Kansas and Missouri. Take another swing?
George Hunsucker
Northland
3 months, 1 week agoI did not know mo had a R administration J…. My bad…..
Johnathon Busby
3 months, 1 week agoAt a glance…
http://www.house.mo.gov/member.aspx
http://www.senate.mo.gov/13info/SenateRoster.htm
Yes, the R’s are running the ship in Missouri. And yes, “your bad”.
George Hunsucker
Northland
3 months, 1 week agogood humor J ignoring the governorship and therefore appointments…… YOu libs are certainly a hoot…
Johnathon Busby
3 months, 1 week agoExcellent evasion, George, ignoring that the congress is the law creating branch of the government, and the root of governmental power. You cons certainly are all a certain way I can use to make a sweeping judgement about people without knowing them.
George Hunsucker
Northland
3 months, 1 week agoYou need. To tell zero congress makes the laws J…