Letter to Legislators from Americans For Tax Reform and Americans For Prosperity Kansas
January 30, 2012
Kansas House of Representatives
During the 2012 legislative session, it is important to remember that ending a tax credit or deduction without an offsetting tax cut is a tax increase.
When you end a credit or deduction, you take income away from the taxpayer and give it to the government. This is undeniably a tax increase.
Proponents of higher taxes and increased spending will argue that credits and deductions are just spending in the tax code. This line of thinking is flat out wrong. Americans for Tax Reform has continually made this clear, along with our allies in the tax fight like the Cato Institutes Senior Fellow Dan Mitchell, who noted last year that, The real threat is back-door hikes resulting from the elimination and/or reduction of so-called tax breaks. The big spenders on the left are being very clever about this effort, appealing to anti-spending and pro-tax reform sentiments by arguing that it is important to get rid of tax expenditures and spending in the tax code.
Additionally, it is important to note that signing the Taxpayer Protection Pledge commits signers to oppose changes in tax deductions or credits that increase the net tax burden on Kansans. For example, a Pledge signer could endorse and sign legislation eliminating a particular tax credit or deduction as long as the same piece of legislation contained a reduction in taxes by the same amount or more. The offsetting reduction could be expanding another deduction or credit and/or reducing marginal tax rates.
As you begin to examine and reform Kansass tax code, please keep in mind the need for effective tax reform that does not increase taxes.
Grover G. Norquist
Americans for Tax Reform
Americans for Prosperity – Kansas
Note: A PDF copy of the letter can be found under “attachments”.