More details emerged this week about Governor Brownback’s plan to phase out the Kansas income tax. I have been worried for some time that eliminating the income tax could shift the tax burden from our wealthiest citizens to those with the least means to pay. Now that figures from within the administration have been made public, it is safe to say those worries are legitimate. Continue reading →

A bill introduced this week would allow liquor stores to offer samples of certain products to customers before purchase. Currently, state law prohibits any consumption of alcoholic beverages inside stores. As a result, proprietors hold tasting events nearby, but not inside their establishments.

In a policy memorandum last August, the Department of Revenue clarified that their interpretation of the state law prohibits samplings “in, on, or about the licensed premises.” This bill would allow liquor stores to host events similar to wine-tasting events at farm wineries across Kansas. In-store tastings would allow for customers to experience products they otherwise would be reluctant to try. If passed, the measure would allow for customers to sample one individual portion, limited to one-half ounce for distilled spirits, one ounce for wine, and two ounces for beer or malt beverage.

ABC Director Doug Jorgensen said the agency was neutral on the legislation. Liquor stores are already subject to state inspections, so no extra work is anticipated. A Senate committee hearing is expected in the next couple of weeks. Both House and Senate committee chairmen did not seem opposed to the legislation, as this is something that has already been implemented successfully in other states.

On Tuesday the House Health and Human Services Committee received a briefing on human trafficking.  This issue has been receiving more attention after Kansas received poor grades last year from organizations who monitor human trafficking around the country. Continue reading →

The House Health and Human Services Committee debated House Bill 2094, which would allow a child to be exempt from required immunizations or inoculations for reasons of conscience or personal beliefs. The parent or guardian must provide a written statement declaring the exemption. Currently, only religious and medical exemptions are allowed by statute. Continue reading →

Governor Brownback unveiled his highly anticipated and closely guarded proposal to the states tax system. His tax plan would eliminate taxes for businesses organized as sole proprietorships, limited liability corporations, and S corporations. Most small businesses, and some large ones, fall into those three tax categories. In addition the Governor proposes to reduce the state personal income tax 24% for the highest income tax payers and a $90 million increase in taxes to the lowest earning working families in the state.

The plan also proposes that the legislature break the promise of reducing the sales tax, and eliminating a host of deductions to taxable income and tax credits individual filers currently enjoy.

The deductions that you will no longer be able to take are:
• Mortgage Interest
• Charitable Contributions
• Real Estate Taxes
• State and Local Sales Taxes
• Learning Quest
• Long Term Care Insurance

Credits being eliminated are:
• Earned Income Tax Credit (EITC)
• Food Sales Rebate
• Child and Dependent Care
• Historic Preservation
• Community Service Contributions
• Adoption Credit
• Small Employee Health Benefit Plans
• Individual Development Accounts
• Disabled Access
• Child Day Care

The tax changes will hurt low and fixed income individuals the hardest and middle income families will be hit by the loss of the deductions for taxes, mortgage interest, child care, and charitable contributions.

The loss of the Earned Income Tax Credit is major blow to the lowest paid tax-paying families. This credit was introduced by President Regan and has been the single most effective program for reducing poverty and keeping people off of the welfare roll and into tax-paying citizens. It is in effect a $90 million tax increase on our poorest working tax-filers.

Income taxes accounts for almost one-half of our state revenue. Any major reform to our tax system that will have as much impact as what the Governor is suggesting needs to be taken with a great deal of caution. The potential for a sharp and dramatic increase in property and sales taxes is very real if the legislature and the Governor get this wrong.

Lowering local property taxes would be my first priority for tax reform during this legislative session. Middle class working families and Kansans who live on fixed incomes have watched their property taxes skyrocket 65 percent over the last decade, all while their incomes have remained stagnant or, in many cases, declined. These are the folks who are really hurting in this recession, and they will benefit much more from a property tax break than an income tax break.

As presented, Governor Brownback’s proposal to eliminate the state income tax appears to more of a tax shift than a tax reduction. In fact he has said it will be revenue neutral, meaning it will raise the same amount of tax revenue. That means the higher the income the less in taxes, and those in the middle and lower incomes will be paying more.

Governor Brownback has rolled out a dramatic reorganization plan for the state’s Medicaid program that will make million’s in profits for private insurers but is being widely criticized by those who serve the disabled. Medicaid is a state and federal insurance program that serves low income children and the disabled. Costs to the program are determined by the number of individuals who are eligible, the services provided, and the reimbursement rate to providers. The Governor proposes to add an additional cost, premiums to private health providers, and promises savings while insisting there will be no cuts in services, that all current services will be offered, and that the reimbursement rate to providers will not be reduced.

Meanwhile the families of the disabled are concerned that more research is needed before moving to a privatized model to deliver Medicaid services to the disabled. Massive changes that could threaten the stability of the system should not be enacted without considerable study to potential negative impacts to the individuals supported within this system. To date this has not been done.

Other concerns of families and providers are:

• There is no evidence that managed care is an effective model for providing quality long-term care services in the DD system.
• Many states have chosen to “carve out” or exclude long-term care supports for persons with significant, lifelong developmental disabilities.
• Very little in savings can be realized from transitioning long-term care DD services to a managed care model.
• Costs to the State in administrating the system through Community Developmental Disability Organizations (CDDO) account for less than 5% of the system’s total resources.
• Assignment of long-term care services to a managed care entity pushes responsibility away from the State onto a private-for-profit entity and ends 150 years of the State’s acknowledgement of direct responsibility to supporting Kansans with disabilities.