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KANSAS GOVERNOR SAM
BROWNBACK THIS WEEK DELIVERED HIS STATE OF THE
STATE ADDRESS, AND EVEN THOUGH SOME ARE WORRIED
ABOUT WHETHER THE STATE HAS CUT TAXES TOO FAR, HE SAYS HE'S READY TO CUT THEM EVEN MORE.
WHEN I STARTED AS GOVERNOR, WE HAD THE HIGHEST STATE INCOME TAX IN THE REGION.
NOW, WE HAVE THE SECOND LOWEST, AND I WANT US TO TAKE IT TO ZERO.
LOOK OUT, TEXAS. HERE COMES KANSAS. [ APPLAUSE ].
TEXAS DOESN'T EVEN HAVE AN INCOME TAX. GOVERNOR BROWNBACK PROPOSES
REDUCING THE HIGHEST INCOME TAX BRACKET PAID BY
KANSANS FROM ITS CURRENT RATE AT 4.9% TO 3.5%.
THE RATE FOR THE LOWEST BRACKET WOULD DROP TO 1.9% FROM 3%. BUT HOW WOULD THOSE BE PAID FOR
WHEN THE GOVERNOR ALSO SAYS BASIC SERVICES OF GOVERNMENT LIKE SAID INDICATION AND SOCIAL
SERVICES WON'T EVEN BE HARMED? WELL, IF THEY DON'T DO SOMETHING IN ADDITION TO THAT,
THERE IS GOING TO BE ABOUT A 267 MILLION-DOLLAR SHORTFALL, SO WHAT THE GOVERNOR IS PROPOSING
IS EXTENDING A SALES TAX THAT WAS SUPPOSED TO SUNSET VERY SOON AS WELL AS ELIMINATING THE
MORTGAGE INTEREST DEDUCTION ON THE TAXES, AND
THAT, ACCORDING TO THE GOVERNOR, WOULD CREATE A
SURPLUS. BUT THERE IS A PROBLEM WITH BOTH OF THOSE.
NEITHER ARE POLITICALLY POPULAR. CUTTING TAX, VERY POPULAR. BUT HE'S GOT TO HARD ROAD TO
HOE. YOU'RE TALKING ABOUT THE GOVERNOR CALLING FOR THE
ELIMINATION OF THE MORTGAGE TAX DEDUCTION. IT WAS TRIED LAST YEAR AND
FAILED. IT'S AN AVERAGE SAVINGS OF $390 FOR MOST PEOPLE.
ISN'T THAT GOING TO BE TOUGH, DAVE HELLING, FOR THE GOVERNOR TO PASS?
YES. HE'S MAKING THE ARGUMENT THAT THAT DEDUCTION IS VERY VALUABLE,
WORTH MUCH MORE THAN $390 ANNUALLY TO VERY WEALTHY PEOPLE, PARTICULARLY PEOPLE WHO MIGHT
LIVE IN WEALTHIER AREAS LIKE JOHNSON COUNTY AND THAT THEY'RE GETTING DINGED, BECAUSE HE'S
GETTING A LOT OF CRITICISM FOR WHAT WE'VE TALKED ABOUT ON THIS SHOW, NICK, AND THAT IS HE'S
REALLY SHIFTING THE BURDEN OF GOVERNMENT FROM THE RICH ONTO THE POOR IN KANSAS, BOTH IN
TERMS OF SPENDING AND TAXATION. IT'S VERY CLEAR,
AND I THINK HE'S GETTING CRITICIZED FOR THAT
SO HE'S MAKING THE CASE THIS MORTGAGE DEDUCTION IS ACTUALLY VALUABLE FOR RICHER PEOPLE.
BUT HE COULD PROVE HE BELIEVES THAT BY CAPPING THAT DEDUCTION RATHER THAN ELIMINATING IT FOR
ALL HOMEOWNERS EVEN WITH RELATIVELY CHEAP HOMES. THAT MIGHT BE AGAIN A WAY OF
COMPROMISE GOING FORWARD. THERE ISN'T A LOT OF POLITICAL SUPPORT FOR IT.
THERE ISN'T A LOT OF SUPPORT FOR KEEPING THAT
SALES TAX EITHER. IF HE DOESN'T GET ANY OF THAT,
CUTTING TAXES ON THE INCOME SIDE IS GOING TO BE VERY DIFFICULT. WHILE THE RICH MAY PAY MORE
ON THEIR TAX, IT'S A SMALLER PERCENTAGE OF THEIR OVERALL INCOME.
ALSO LOOK AT THE TAX PERCENT CUTS. THE RICH ARE GOING TO HAVE TAXES
CUT 1.4% WHERE MIDDLE INCOME AND POOR PEOPLE ARE ONLY GOING TO SEE ABOUT A .6 REDUCTION.
WHY ISN'T IT EQUAL? IF YOU'RE GOING TO CUT IT, CUT IT EQUAL.
AND THEN YOU TALK ABOUT THE SALES TAX THAT WON'T CUT. THAT IS A REGRESSIVE TAX, WHICH
OF THOSE OF US WHO BUY GOODS IN KANSAS, FROM THE PERCENTAGE OF
OUR INCOME, THAT'S MORE MONEY OUT OF OUR POCKET. SO THESE TAX CUTS ARE BENEFITING
THE RICH IN KANSAS AND THE CONTINUED TAXES OR DEDUCTIONS TO GET RID OF HURT MIDDLE COMPANY
AND POOR PEOPLE. VERY QUICKLY, THE IDEA, THOUGH, OF REDUCING INCOME TAXES
TO ZERO IS ALL THE RAGE IN REPUBLICAN GOVERNOR CIRCLES. IT ISN'T JUST SAM BROWNBACK, THE
GOVERNOR OF NEBRASKA PROPOSED IT THIS WEEK. LOUISIANA WANTS TO ELIMINATE IT.
OKLAHOMA IS PUSHING FOR A MAJOR REDUCTION IN INCOME TAXES, AND IT'S A BIG ISSUE IN MISSOURI.
THE IDEA IS A PRETTY BIG DEAL. THE GOVERNOR ALSO PROPOSES, BY THE WAY, A 14-DOLLAR INCREASE
PER PUPIL SPENDING FOR SCHOOLS. THE 76 MILLION-DOLLAR INCREASE FALLS FAR SHORT OF A COURT
RULING LAST WEEK THAT ORDER THE STATE TO INCREASE
SPENDING BY AT LEAST 440 MILLION NEXT YEAR TO
PROVIDE WHAT THEY CALL A SUITABLE EDUCATION FOR ITS SCHOOL CHILDREN.
DOES THIS ELEVATE THAT CLASH WITH THE COURTS WE TALKED ABOUT LAST WEEK WHERE THE GOVERNOR
WANTS TO CHANGE THE WAY JUDGES ARE SELECTED? WELL, THAT'S RIGHT WHAT'S ON
THE BOARD HERE, BECAUSE WE'RE NOT TALKING ABOUT CASES. WE'RE NOT TALKING ABOUT ISSUES
IN TERMS OF THINGS LIKE ABORTION. WE'RE NOT TALKING ABOUT TRIALS.
WE'RE TALKING ABOUT THE COURT FORCING THE LEGISLATURE AND THE GOVERNOR TO SPEND MORE MONEY,
AND THEY'RE TAGGING THE COURT AS LIBERAL. SO THE GOVERNOR, HE'S ASSUMING,
IF HE CAN GET CONTROLOVER -- CONTROLOVER CONTROL OVER THE APPOINTMENTS TO THE SUPREME
COURT, HE CAN GET MORE CONSERVATIVES.