Monday, March 15, 2010

Hutch News Guest Editorial

Here is an editorial in the March 15 Hutchinson News by Tom Arnhold.  Great article on taxes and tax exemptions.  The only area where I disagree is when he mentions sports in Buhler and Hutchinson.  We have cut over $80,000 in sports programing in Buhler.

It's time to consider repealing tax cuts, exemptions


By Tom Arnhold - Community columnist
Political courage is sadly lacking in our elected officials these days. It took guts for President Eisenhower to send federal troops to Arkansas to enforce laws allowing blacks to attend public schools. President Kennedy showed fortitude when forcing the former Soviet Union to remove missiles from Cuba.

Now our politicians want to accomplish only three goals: 1. Get elected, 2. Get re-elected, 3. Gain power and/or wealth. Members of Congress such as John Murtha and Ted Kennedy died in office. Kansas' own Sen. Pat Roberts seems intent to do the same. Unfortunately, current election laws tend to keep incumbents in office indefinitely.

Kansas schools are suffering because our Legislature caters to anti-tax groups and the Kansas Chamber of Commerce. It began with the faulty thinking of President Reagan that if the government gave tax breaks to large corporations and the wealthy, they would use the tax savings to create more jobs that would benefit the rest of us peons. This is commonly known as the "trickle-down effect."

Instead, we have seen what wealthy companies do with their money. The top executives of large companies have paid their executives disgustingly large wages. Our Kansas legislators have passed laws that give tens of millions of dollars worth of tax breaks to companies who want to relocate to Kansas. Eaton threatened to leave Hutchinson and got tax breaks to stay.

A few years back, the Kansas Chamber of Commerce convinced legislators to phase out personal property taxes in equipment. Just four years ago, I paid $400 a year in personal property taxes on my equipment, but now pay nothing. I have not hired any new employees or reinvested the money in my business. Instead, I saved the money.

Think about all the businesses across Kansas who no longer pays personal property taxes. That money has been taken out of the Kansas budget. Our legislators would rather see our schools become second rate instead of having the political courage to do away with tax exemptions. Over the past 20 years, our elected officials have granted numerous exemptions to aid various groups. Those exemptions should be repealed now that our schools are in need.

Rep. Jan Pauls won't increase cigarette taxes. Rep. Joe Seiwert wants to cut all state agencies in an equal amount across the board. Rep. Mike O'Neal will not restore previous tax cuts granted to corporations. Sen. Terry Bruce recently noted school districts should be consolidated, but it was likely not politically doable. Have some courage, Sen. Bruce, and introduce a bill to consolidate small school districts. And when we consolidate them, reduce the number of administrators and not the number of teachers.

Either our legislators do not comprehend the damage they are doing to Kansas students or they do but feel they have to kowtow to those calling for no tax increase. Underfunding our schools is shortsighted and will damage tax revenues in the long run. Those teachers who are laid off because of budget cuts will never go back to teaching. Students won't become teachers if they face the possibility of losing their jobs or having their salaries cut every time Kansas has a budget crisis.

Firing teachers and other education personnel is only going to lead to more jobless Kansans. These folks will be on unemployment, costing the government more tax dollars. Many of those laid off won't afford health insurance, causing more stress on them and the system. The Kansas Legislature should cut back to four days a week like some school districts are doing. We can consolidate the number of legislative districts to cut back on the number of legislators we have to pay. Also, the Legislature should cut legislator salaries and staff by 10 percent.

Kansas politicians cut taxes for a wide variety of persons and businesses when the economy was good. Now that our tax revenues have decreased dramatically, those taxes need to be reinstated for the greater good of all Kansans. I am not asking for new taxes, just that the taxes we reduced in the last 10 years and the exemptions that were passed be repealed.

Our schools need to do a better job of budgeting. Since I moved to here, Hutchinson and Buhler high schools have added boys and girls bowling, girls softball, and boys baseball and soccer. It's time to reduce some of the sports programs or redesign them to impact more students at a lower cost. My niece's junior high school girls basketball team recently hosted Emporia. At the same time, her junior high boys basketball team traveled to Emporia to play. That makes no sense whatsoever.

There is no doubt that Kansas is facing a shortfall of tax revenue and some programs will have to be cut. However, we should not cut the budget of all state agencies equally. If my income is down, I do not cut my food budget and my discretionary spending equally. The Kansas Legislature should cut programs that are not essential and leave education and other vital services intact.

Sen. Bruce, Rep. O'Neal, Rep. Pauls and Rep. Seiwert: Do the right thing and fund education properly, even if it means repealing the tax exemptions you passed a few years ago.

Tom Arnhold is a longtime Hutchinson resident and attorney. E-mail: TArnhold@kslawyer.net.

I believe that the momentum for revenue enhancements instead of deeper cuts by the legislature is gaining momentum.  Your thought or observations?

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