Survey: what type of Tax increase will you support?
Patterson@house.State.ks.us
www.dougpatterson.org
Prepared by Rep. Doug Patterson
New Tax Increase Survey
We are at the end of the Session with a budget which could include $20.00 in the BSAPP (the school Base) but no funds to support it. For a description generally of the budget, see the Reports page, 2002 of my web site: "www.DougPatterson.org". The financial picture is bleak not just for 2002 but also for FY 2003 which starts July1, 2002. There is no cash in the reserve, ie. the "Rainy Day" fund balance which should be a positive $338M and it will have a negative $65M balance by June 2002. Marginal declines in tax receipts continue to increase. You have read about this in the paper. With the budget we have passed, without a tax increase, we will have a $380M hole. Such a budget is not legal. Therefore, unless something is done by this Wednesday, the Governor is compelled to adopt his original State of the State budget. This will cut senior services in all areas, reduce the Regents budget (the five state colleges and all community colleges) by $56M, cut demand transfers to local government for parks, law enforcement, etc. and cut the Per Pupil Base by between $158.00 to $250.00. There is no doubt about that - all at a time when we were hoping for even a paltry $20 increase in the Base for schools.
In February, 2002 I did a survey. Many of you responded. I told you that I was a fiscal conservative, and that we needed to find waste in government. We are continuing that process, but since we were going to have a financial problem for the long term, I told you that I would be open to tax increases if you, my constituency, agreed. In that survey, 82% of those responding said a tax increase to support essential services was acceptable if the same was absolutely necessary. My e-mails and calls since then have been consistent with that position. Prioritized, you said that the following taxes would be game to increase for essential service, if necessary: tobacco-24%, sales-19%, property-13%, alchol-10%, income-8% and gasoline-3%. Prioritized, you said that the following services were important to you: education, transportation, social services, senior care, the disabled business and farming.
We have run every individual and packaged tax plan before the House without success, however, with the Governor being obligated on Wednesday to sign the original budget as above described ( a true train wreck), I want your input. The tax increases to be considered are:
Package A. Sales Taxes: Existing State sales tax is 4.9%. Proposed raise to 5.3% June 1 of 2002, down to 5.2% June 1 of 2004, and to 5% June 1, 2005. Raises $152.9 million first year, dropping to $123 million for Fiscal Year 2005, and to $43 million thereafter as the rate drops to 5%.
Package B. Reinstate the Class C Inheritance tax. on only non-lineal heirs (cousins, nieces, etc. and non-family members): Raises $15 million in FY 2003, $20 million thereafter.
Package C. Cigarette tax: 76-cent-a-pack hike to $1 a pack, raises $126 million in FY '03, $137 million a year thereafter. A $65/pack increase raises 115M, $.50 / pack increase raises $90M.
Package D. Income tax. Current rate is about 6.24% on a typical Leawood family. The proposal raises and creates new income tax brackets. The current 6.24% would stop at annual income of $60,000. From $60,000 to $150,000 the rate would be 6.75%. Between $150,000 to $250,000 the rate would be 7.5% and over $250,000 the rate would be 8%. Corporate rates would also increase. Raises $350M to $500M each year.
Package E. Real Estate Taxes. Would you support an increase of $300/year in real estate taxes on your house?
Below is a table of type of tax options we will be voting on again this Monday, 5/13/02. Please advise which package(s) is/are acceptable to you. You may simply put an "X" in the appropriate box, or add comments.
|
Type of Tax Package |
Money Raised |
I support |
I don’t support, or I would suggest the following lower tax increase for this Package |
|
Package A |
$152M then down |
||
|
Package B |
$20M |
||
|
Package C |
$137M |
||
|
Package D |
$350M to $500M |
||
|
Package E |
$110M |
||
|
I live in Leawood |
Yes: |
No: |
Please fill out the spaces above provided, copy and paste it on a "Reply" e-mail and send it back to me before 10:00 Monday, 5/13/02.
I’m sorry for the short notice, but we got out of session yesterday and were just told of the votes coming up on Monday.
Thank you
Rep. Doug Patterson
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Paid for by the Committee to Elect Doug Patterson, Dave Imhoff, Treasurer