At the end of "The Dark Knight" Commissioner Gordon tells his son that Batman is Gotham City's silent guardian, watching over and protecting the city. He's not a hero, says Gordon, "He's Gotham's Dark Knight". I think this is an appropriate way to describe what we do here at NTU: we watch over and protect our members and other overburdened taxpayers.
Consider Kansas. Recently, the Kansas Legislature considered a variety of increases in tax rates, including those on cigarettes and income, to plug a $510 million deficit. But swift and sure opposition to these proposals emerged. NTU, on behalf of its members, came out and opposed these tax hikes, arguing that higher taxes would not solve the problems facing Kansas, and actually make matters worse by destroying jobs. As NTU, together with Americans for Prosperity Kansas, said in a joint letter to the legislature:
"Raising the state's income tax by 12 percent on those making $200,000 or more per year would penalize small business owners and professionals, creating a powerful incentive for them to leave the state altogether. A University of Kansas study shows that boosting the sales tax by even one percentage point would cost the state 26,000 jobs and reduce personal income by $2 billion. Based on past experiences across the country, claims that such a rate would be "temporary" are far from solid. The 55-cent-per-pack tax on cigarettes represents a 70 percent jump. Moreover, the sales and excise tax hikes would put Kansas at a competitive disadvantage in cross-border shopping because most of the state's neighbors would have lower rates."
Instead of punitive tax hikes, we argued that the state should reduce spending to a more manageable level. "Carefully taking a scalpel to the budget to return it to a condition seen just a few years ago will not cripple the state; rather, it will be restored to fiscal health without bleeding taxpayers for more money." While the legislature did not take up our challenge to find ways to save more money, they dropped the cigarette and income tax hikes in response to strong opposition. The defeat of these tax hikes will save millions in tax dollars and many jobs for taxpayers.
Unfortunately, Kansas' overburdened taxpayers did not escape injury from punitive tax increases. A bipartisan coalition of tax-and-spenders helped pass a $314 million increase in the sales tax, one of the largest single rate increases in state history. The sales tax hike is expected to cost a family an extra $266 a year. Wednesday's Kansas City Star provides a story about what the higher sales tax will mean for an average family:
"Sen. Karin Brownlee, an Olathe Republican who argued against the tax hike, pointed to an e-mail from one man who told her all the ways his family tightened its belt in the recession. The man urged the Legislature to do the same, she said."
"His message was that if families are expected to cut back, the state should, too, Brownlee said. Now, with his family expected to pay $266 in extra sales taxes, "It means he doesn't get to take his wife out to dinner as often."
"Multiply that by the state's population and you have fewer dollars circulating in the local economy, she argued. The tax hike will hurt families and businesses and make the state less competitive, she said."
Defeating the income and cigarette tax hikes are important victories in the fight for the right to keep what you earn. But the approval of the sales tax hike shows that constant vigilance is required. Rest assured, NTU will continue to watch over the states to protect its members and overburdened taxpayers. We are taxpayers' Dark Knight.