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Well this week reporting in income taxes to the smell test Republican governors in several states are considering.
Completely their income taxes.
They believe the change would spur economic growth in revenue can -- work and how would states pay for their services without those tax dollars -- joining me now is.
The governor of Kansas Sam Brownback and governor.
This this is yet you're trying to do it in Kansas.
What is your plan and.
And how's the whole thing that a balance -- -- buildings on balance out primarily at the end of the day off of growth.
But we've already taken from six point 45% rate to four point nine top rate with a plan from the legislature to get 3.5 hand.
We're already at zero on all LLC and sub best pass through and come.
So way it's gonna work as we're gonna have really gonna push growth we initially we're going to a flat tax the small business accelerator -- -- LLC in sub -- We kept our sales tax where it was it was a one penny extension.
We're proposing to keep that in place we increased our severance tax slightly and we've really reduced a bunch of cost that the state level which is at the end of the day something you have to do -- you have to balance your budgets him.
You getting pushed back though you're getting pushed record got a Huffington Post article that said.
Sam Brownback anti tax plan gets criticized by Kansas homeowners.
It did you are you touching that third rail of the mortgage deduction we -- this we are.
I -- proposed -- is go to a flat tax so I get your rates down but it broadens your basic things are proposing to take away -- the mortgage deduction that about 25%.
Of religion a lot of heat on one getting a fair amount.
But you again today how do you how do you get there and -- did you get your rates down that mortgage deduction worth this much what this is the problem is that everybody says I want smaller government but don't cut my benefits.
They -- say that but we're already seen a record number new business violence in the state of Kansas.
Already here and people hey I'm moving news to this day where we had out migration for thirty years.
We -- high tax -- the region -- now headed to the lowest taxed state in the region.
So you're starting to see some benefits what we're doing and we're hoping we can move on through that where you were telling me during the break that that we were talking about Texas you said.
That that you've lost people to Texas and use -- why did you leave and they said because of the -- of is that what.
During the -- -- laws that lets keep these people.
That and whenever I was running around area country previously and look at -- to replace and you could tell a low tax jurisdiction next to high tax jurisdictions.
-- New Hampshire -- New Hampshire do well in the New England states.
What what's their income tax rate low with a 00 yeah now and you could just -- of all their taxes are -- New Hampshire they are and they've got.
You know some nice growth is taking place three and that's not the only factor.
When you gotta do other things right you get an education right and we went to say in -- state is gonna pay for all technical education while a student is in high school.
We've had a 50% increase in technical education which we need more people with skills.
When they come at a school.
So you gotta do a number of things but I think tax policy is really critical piece of hits here sins of the push back -- old do you know that people are gonna say -- you all right we can put a calculator and quantify.
What these numbers are they do static analysis.
What you're suggesting and what Republicans generally dues is -- the dynamic scoring and say well if you do that you'll get growth let you mentioned.
But but that's kind of wish is an -- you can't put it in some kind of quantifiable formulated the beauty about the states is you have to balance your budget each year.
So you can you can projected off -- dynamic it project office static at the end of the year you gotta balance your budget.
And I came in with a projected 500 million dollar deficit while that didn't happen because we can't run a deficit.
So we got our cost down really went through a lot of different places didn't do any thing across the board.
We added money in some places but we eliminated -- in a number of others and when you get that cost structure down.
Then you can also get your attention -- -- got to balance you run in the of the state like a business what you're saying well but.
But we got red states and Blue States in the Blue States are wanting to raise their taxes Massachusetts is one of them.
Governor Bob McDonald -- is getting a lot of heat to over the should -- from gas taxes to higher sales taxes.
So what is is is this your answered the perfect answer the formula I don't think it's the perfect answer but it focuses primarily on growth.
Which I think really is the -- I think it really is the answer nationwide that -- really is the answer for us and -- just can't tax people to death.
And hope that they stay and -- like it and produce what you've got to get the tax rates down.
At a manageable level for people you got -- sent the system you don't pick winners and losers -- you create a better atmosphere and environment.
That I is that will grow did I see doctor art Laffer is working with you on -- is -- an old friend from years ago when I was in the senate and he's come out and been helpful to we'll see -- this -- -- -- was given the credit for.
The Reagan economics reaganomics.
And so we'll see if it does he preaches a pretty good story so your urine test bed for the us when I don't think it's a test.
People act economically irrational come to Kansas no taxes analyses and sub s.'s this is -- place to do it.
By our -- a year in New York are you knock in on big company doors is that with the business for what we're trying to attract the small business.
We wants moment that's why LLC in -- -- no income tax because that's how they are organized we wanna be the best place in American to grow a small business.
-- -- -- Do both of those and come to our state we're seeing -- that -- -- and that's what we're really target.
Big business they -- shouldn't pay for this they wanna subsidy for that and we get in that game and were in that game.
What we're really wants the small business all right governor Sam Brownback good to see again think it's --
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