Robin Hood in Reverse: Kansas Bill Raises Taxes On The Poor While Cutting Them For The Rich
In what one state Democrat has called “Robin Hood in reverse,” Kansas’ tax committee this week approved a bill that would cut taxes on the wealthiest Kansans to the tune of $1,500, while raising taxes on those residents making less that $25,000 per year. About half a million of the state’s poorest residents will see their taxes hiked under the plan:
A Kansas House tax committee passed a bill in which anyone making less than $25,000 a year — roughly half a million of the state’s 2.9 million residents — will pay an average of $72 more in taxes, while those making more than $250,000 — about 21,000 people — will see a $1,500 cut, according to Kansas Department of Revenue estimates cited by the Kansas City Star.
The hike would come from the elimination of tax credits typically benefitting the poor.
This plan was actually amended from an earlier one proposed by Gov. Sam Brownback (R-KS) that would have been even worse for low-income Kansans, raising their taxes by hundreds of dollars while cutting them by more than $16,000 for a millionaire. According to the Institute on Taxation and Economic Policy, Kansas’ tax system is already regressive, with the poorest 20 percent of Kansans paying more than 9 percent of their income in taxes, while the richest 1 percent pay less than 6 percent of their income.
Former Reagan economic adviser and supply-side guru Art Laffer has been consulting with Kansas lawmakersabout the state’s tax overhaul. In fact, Laffer has been peddling bogus research in several states in an attempt to get them to make regressive tax cuts. And considering that Laffer openly brags about Reagan raising taxes on low-income Americans, perhaps its not surprising that Kansas’ plan does what it does.