Archive for Thursday, November 11, 2010

Donohoe: repeal sales tax increase

November 11, 2010

Emboldened by last week’s election gains, Republicans in the Kansas House who lost a bid to stop the state sales tax increase say it’s time for a rematch.

Rep. Owen Donohoe, R-Shawnee, is contacting and writing to his fellow Republican House members to gauge their thoughts on what they want to do when the legislative session starts in January.

One of Donohoe’s top priorities, he said, was repealing the tax increase that went into effect July 1.

“I think there will be a vote,” Donohoe said Tuesday. The issue of taxes will be debated in the House, “and someone is going to bring up an amendment to repeal it. Whether it’s successful, I don’t know.”

During the last legislative session, a bipartisan coalition of mostly Democrats in the House approved the tax increase by a 64-61 vote.

But in last week’s election, Republicans made historic gains, going from a 76-49 advantage to a 92-33 margin. Many of the new Republicans campaigned on a pledge to shrink government and lower taxes.

Gov.-elect Sam Brownback, a Republican, has said he wanted to hold down taxes but has added he didn’t support repealing the sales tax increase.

“We need to hold our taxes down. I’m not proposing new taxes. I’ve not proposed taking the 1-cent sales tax off,” Brownback said.

In a letter, Donohoe states, “As you know, Gov.-elect Brownback has a legislative agenda, but it may not be as conservative as we wish.”

The state sales tax increased from 5.3 cents per $1 to 6.3 cents per $1 and then is scheduled to decrease to 5.7 cents per $1 after three years.

Opponents of the increase said it would hurt taxpayers and the economy. But supporters said the increase was necessary to avoid permanent damage to schools, social services and public safety, all of which were targeted in several rounds of state budget cuts.

Donohoe, whose district includes Bonner Springs and Basehor, said the reason for his letter to GOP members was to map out a Republican platform for the next session and ask Republican legislators who are running for leadership positions in the House where they stand on that platform.

“I want to know definitively where everyone is at, who is running for leadership,” he said, adding that he was not a candidate for a leadership post.

Donohoe said his other priorities were enacting tougher abortion regulations, auditing school districts, reducing the number of state employees and requiring identification to vote.

Eliminating the sales tax increase would create a $300 million revenue hole on top of what is estimated to be a $500 million hole when federal stimulus money runs out.

But Donohoe said cutting the tax would improve the economy by causing more businesses to locate in Kansas, which he said would benefit the state’s revenue picture in the long run.

Comments

HenryIII 3 years, 10 months ago

Rep. Donohoe offers no evidence that eliminating the sales tax "would improve the economy by causing more businesses to locate in Kansas," because there is none. Retail sales in Kansas have increased since the new tax was levied, not diminished. What is certain is that diminishing the quality of our educational system would repel businesses from Kansas, not attract them. The idea that draconian cuts to our education system will help create prosperity to Kansas is simplistic, naive, and foolish. Nothing could be more counter-productive.

Mr. Donohoe is both embolden, and mistaken, if he believes he has a mandate to decimate state government. In a representative democracy, an enemy of government is an enemy of the people. It would be foolish of us to allow rightists like Donohoe to bankrupt our government and render it ineffective. Donohoe and his ilk are dangerous to the citizenry of Kansas.

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HenryIII 3 years, 10 months ago

Rep. Donohoe offers no evidence that eliminating the sales tax "would improve the economy by causing more businesses to locate in Kansas," because there is none. Retail sales in Kansas have increased since the new tax was levied, not diminished. What is certain is that diminishing the quality of our educational system would repel businesses from Kansas, not attract them. The idea that draconian cuts to our education system will help create prosperity in Kansas is simplistic, naive, and foolish. Nothing could be more counter-productive.

Mr. Donohoe is both embolden, and mistaken, if he believes he has a mandate to decimate state government. In a representative democracy, an enemy of government is an enemy of the people. It would be foolish of us to allow rightists like Donohoe to bankrupt our government and render it ineffective. Donohoe and his ilk are dangerous to the citizenry of Kansas.

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