Truth and transparency

Time to read
1 minute
Read so far

Truth and transparency

By
Rep. Steven Johnson Capitol View

Editor’s Note — Prior to the August primary, several campaign items landed in voter mailboxes. They were aimed at moderate Republicans and in most cases were misleading at best. Rep. Steven Johnson, who has been a leader in the effort to restore civility to public debate, represents Ellsworth and other counties in the 108th Kansas House District. He is unopposed in the general election. Here is his response with information that will undoubtedly be as important during the general election. The second part of Rep. Johnson’s response will appear in the Sept. 17 edition of the I-R.

While the focus is currently shifting to what is the truth in health policy, truth shouldn’t be so difficult to define. Many big issues are related and one simple “yes” or “no” vote may not be a full measure of a position. Entities and priorities are all important, and the big issues are not often neither clear or uncomplicated.

First, don’t let me pretend to have the truth. I will be happy to seek it with you, but preaching my opinions as truth will leave us where we started.

On the tax issue, tax cuts do provide an economic stimulus. That is good, but in itself doesn’t make the cut good or bad policy. As with everything else, we have to look at the related factors to make our judgement. Differing values will lead to justifiably different conclusions.

The 2017 tax increase is demonized in postcards across the state. It restored a portion of the tax cuts that were passed (and also demonized … not by the same group) in 2012.

The increase is a part of the story.

Rates were between 3.5 percent and 6.45 percent in 2012. They reduced to a low between 2.7 percent and 4.6 percent, and the 2017 change brought the range from 3.1 percent to 5.7 percent.

The other part of the story related to the 0 percent rate on sole proprietorships and LLCs. To be clear, besides income tax, business pays a great deal and we all rely on this engine to carry our economy. Most agree it would be a good thing to have this tax cut.

But it may be that the story doesn’t end there. The Tax Foundation and others provided testimony in 2017 that the tax cut turned into a loophole that could be exploited to lower tax liability. Here is where more opinions vary.

There was consistent evidence of a big increase in the number of businesses in Kansas following the tax cut. This was one of the objectives sought by the policy, and it appears to have worked on that measure.

However, the evidence of an increase in our state’s total production (GDP if you will) was not as evident. Therefore, a conclusion by the Tax Foundation and others was that there was an increase in entities who sought to enjoy the tax break by changing the nature of their income, but not as much of a change in aggregate business or production that would drive revenue.

Next week: More on this assumption and the other side of the story.