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Thursday, February 12, 2009

Wichita sales tax is regressive

Once again, conservatives are looking for the easy way out. They now want a sales tax to take the place of property taxes. Not only are sales taxes a regressive tax, they affect the poor, while property taxes affect those who can afford property, but it will not be a savings. Sales taxes are already near 10 percent in Wichita. They were 3 percent 20 years ago. A few years ago we had a 1 cent sales tax added for the construction of a new arena. It does become noticeable when buying a large purchase, such as a car. Now the sales tax will go up even further. Eventually a loaf of break will double in price as sales taxes are added to make up for loss of income taxes. Then it won’t be such a favourable tax anymore.

From The Wichita Eagle, Feb. 11, 2009:

Wichita sales tax increase proposed to cut property taxes
BY SUZANNE PEREZ TOBIAS

The Wichita Eagle
Wichita city leaders say they may discuss increasing the sales tax in an effort to lower residents' property tax bills.
Local businessman Craig Gabel presented the idea during the public agenda portion of Tuesday's City Council meeting, saying the move could stabilize the city's tax base and "share the burden of the cost of local government."
"The people of our great city are ready for this change," said Gabel, who lost a bid for a seat on the Sedgwick County Commission in November.’
He proposed putting an ordinance for a 1-cent sales tax on the city election ballot in April. The sales tax "would show as a credit on each residential property owner's tax statement," he said.”

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