Topeka, KS – The Kansas Truth Caucus is highlighting a stunning admission by Senator Laura Kelly (D-Shawnee) to the Topeka Capital-Journal in which she revealed liberal legislators are using the repeal of the small business tax incentive as leverage to pass much larger individual rate increases on all Kansans.
As part of the tax negotiations, various compromise proposals have been floated to retain part of the small business incentive or simply consider its repeal separately, given so many campaigned exclusively on eliminating it.
In the article, Sen. Kelly alludes to the fact that considering the repeal separately would threaten their real goal of increasing income tax rates on individual Kansans, because that’s where the money is. Here is the key portion of the article:
“If we take that part out of the overall tax plan, we take all of our leverage out,” said Sen. Laura Kelly, D-Topeka.
Kelly said closing what is often referred to as the LLC loophole is the “politically palatable” part of the tax hikes, but it isn’t the bulk of the money the state needs to raise.
“The real money in the tax cuts was not in that provision, it was in the reduction of the brackets,” she said, referring to income tax rates.
Senator Ty Masterson (R-Butler) thanked Senator Kelly for her transparency.
“Senator Kelly is certainly not a member of the Truth Caucus, but her truth-telling in this case is refreshing and I thank her for the transparency. She openly admitted that the goal to grow government was always predicated on raising rates on every single Kansan who pays the income tax,” said Masterson, who added, “Her quote also tells another truth, which is that the liberals view small businesses as ‘leverage’ so they can reach for where they feel the ‘bulk of the money is’ - the pockets of hard-working Kansans.”
Rep. Randy Powell (R-Johnson) commented that he also appreciates Sen. Kelly’s candor.
“I really appreciate what Senator Kelly said, as it reveals that the campaign-cycle claims about tax fairness were always a smokescreen, and it also explains why so many liberal members voted against repealing it last session. Even though the small business incentive is clearly working, the liberals needed to retain it as a political punching bag to beat up as they went about their real goal of hiking taxes on everyone to pay for their new spending,” said Powell.
The Kansas Truth Caucus continues to oppose the massive tax increases being produced by the tax conference committee and is calling for a more measured response to cover the budget deficit that would not grow government.
“Our goal is to meet our constitutional responsibility to Kansas citizens, not expand government,” said Masterson.